Dunlop Zimbabwe Sales Rise Following Granting of Forex Permit

According to a company official, sales at Dunlop Zimbabwe Limited have significantly improved since the company received a license entitling it to sell its products in foreign currency. The license was granted to Dunlop Zimbabwe by the Reserve Bank of Zimbabwe in late November 2008.

Without releasing specific figures, company managing director Kennedy Mandevani said that sales have been steadily increasing. “The FOLIWARS (Foreign Exchange Licensed Warehouses and Retail Shops) sales are gradually picking up and will make a positive difference to our sales mix,” he said. “Dunlop is intensifying its marketing campaign so that more of our customers are made aware of this facility.”

Mr. Mandevani commented that increased sales would give the company the opportunity to import raw materials, enabling it to sell more products on the domestic market as well as generate the much-needed foreign currency.

Dunlop Zimbabwe is also involved in toll manufacturing agreements – an agreement under which foreign firms provide raw material finances so that Zimbabwean companies can produce or manufacture products for them – with Trentryes in Zambia and Dunlop South Africa, while efforts to revive agreements with companies in Botswana and Namibia are at an advanced stage. Sales from toll manufacturing, reported Mandevani at the end of December 2008, have also slightly increased. “Toll exports have done well this year. We look forward to continue on this footing next year. A combination of FOLIWARS sales and toll exports will be good for Dunlop in 2009.”

Regarding Dunlop Zimbabwe’s prospects this year, Mandevani said much depends on the business environment. Different strategies are in place to reduce costs and retain market share, he said, although more substantial investments will only be made if the market justifies it. “A lot depends on the business environment. If it improves, Dunlop will be spending money on product improvement and import of tyre sizes we don’t make here to meet demand. Marketing spending will certainly be re-looked with a view to preparing for increased competition.”