Nortex group of companies expands

RYDER GABATHUSE
Staff Writer | Monday June 27, 2011 00:00

 

Briefing a group of visiting journalists at the invitation of the Botswana Development Corporation (BDC) last week, Managing Director Mukesh Josh said the expansion is geared at boosting production. Nortex started off in 1990 with a P2 million BDC loan, which helped Southern Africa's fastest growing end-to-end manufacturer of exquisitely designed towel products to stand tall. BDC later funded Nortex at about P1.6 million for further expansion.

Mukesh, who is a chartered technologist, said that in 2001 BDC wanted to disinvest so he opted to buy them (BDC) out. The expansion project, Mukesh explained, is expected to help the turnover sales of Nortex to grow from P100 million to P120 million.The envisaged expansion would help Nortex come closer to realising its ambition of capturing markets in Asia, the European Union (EU) and the United States of America (US). Nortex produces a wide range of terry towels, napkins, beach towels, athletics towels, bathrobes and bath mats, which are sold in major chain stores throughout the Southern Africa region. The company employs about 440 workers 18 of which are Indian, South African and Zimbabwean expatriates.  Meanwhile, Josh stated that in 1997, as part of its diversification programme, Nortex Group bought Matsiloje Portland Cement (MPC) through an auction sale from the National Development Bank (NDB) and was funded through a BDC loan.  As part of the expansion project, BDC has recently approved a loan of P16.5 million and P4 million as preference shares. 

'Expansion work is currently at design stage and it is expected to commence in 12 months time,' said Josh and added that the project is going to help prove that local products are available and can compete with imports from elsewhere.  He said they have challenges of building staff houses around the mining area, as the 50km distance their workers endure everyday was not helpful.  MPC currently employs about 150 people and once it has expanded, it will have a potential of employing about 250 - 300 workers. With a current turnover sales of P25 million, Josh has projected MPC turnover sales to shoot up to about P160 million exceeding its sister towel making factory, which is currently the flagship of the Nortex Group.

MPC, which produces about 2, 000 bags of cement, will produce about five times its current production capacity once expanded.  Josh said in the end their targets would prove that local products could compete effectively with imports.  MPC thrives basically on locally produced material as the packaging bags are acquired from Gaborone manufacturers. He also indicated that they are currently acquiring coke breeze, a special type of processed coal from the neighbouring Zimbabwe.

'We take care of the environment where we do our business and it's our duty to ensure that the pollution of the environment is minimal,' emphasised Josh who indicated that tests are done continuously to ensure that lives of villagers around the mine were not imperilled. MPC, Botswana's only cement producing company, has 25 more years of uninterrupted business.