Zimpapers Logo

Lobels Bulawayo branch manager Dumisani Mhlanga stresses a point to the Reserve Bank of Zimbabwe governor Dr John Mangudya during a tour of Lobels Bread plant last week

Charity Ruzvidzo Business Reporter
LOBELS Bread is now operating at 100 percent capacity following a $2 million investment in a new production line that was installed in July last year.
Before commissioning of the new equipment in Bulawayo, the company was producing about 80,000 loaves per day from two production lines.The new line has increased output to about 100,000 loaves per day.

“The company is operating at full capacity utilisation. We’re not facing any challenges at the moment. We get our raw materials from National Foods with no hassles. The company is doing very well,” said a Lobels official who requested anonymity during a tour of the company’s Belmont branch in Bulawayo last Thursday.

The official said the new production line has enabled the firm to meet the increasing demand for bread.

“This new line produces more bread. Before that our production was smaller. We’re now able to meet the increased demand for bread by our valued customers,” said the official.

In 2013, Lobels installed $5,8 million semi-automated machinery at its Harare plant, a development that has seen the production capacity at the plant going up by 20 percent to 250,000 loaves per day.

The bread producer, which almost collapsed under the burden of a $14 million debt a few years ago, has been rehabilitated after obtaining funding from a consortium of banks.

Lobels Bread, which is now owned by banks  — NMB, FBC, CBZ and Met Bank under the vehicle Altiwave — began operations in Zimbabwe between the late 1940s and early 1950s when it was run by the Lobels brothers.

Lobels is reclaiming its market position with the share sitting at about 38 percent. The group is targeting a 45 percent share.

As part of its growth strategy, the company introduced retail outlets that sell bread and confectionery across the country.