How To Set Up A Water Bottling Plant

By Vusumuzi Dube

The Bulawayo Municipal Commercial Undertaking owned Ingwebu Breweries is working on establishing a polyethylene terephthalate (PET) plant at their depot so every bit to bundle their beer in takeaway bottles and aid improve their market share.

This comes every bit the brewery managed a profit of US$111 024 for the 2nd quarter, however, this fell short of their targeted profit of U.s.$429 000. According to the system's second quarter operation report information technology was noted that there was need to source funding and procure the PET plant which required US$one,3 1000000.

"The organisation managed to sell 10,xvi meg litres against a budget of eleven,iv million litres and a previous year quarter volumes of seven,8 million litres.

"The organisation managed a profit of U.s.$111 024 for the 2d quarter against a budgeted profit of U.s.a.$429 790 and a previous twelvemonth quarter turn a profit of The states$256 138.

"Key to notation is the alter in market dynamics which has seen customers preferring to buy PET carbonated beer equally takeaways from outlets due to the impact of the Covid-19 pandemic. This has resulted in our major competitor enjoying increased market share due to the ability to supply opaque beer in not-refundable containers," reads the written report.

It was further revealed that the organisation faced challenges with increases in packaging material costs which was negatively affecting its profitability.

"The lids prices increased from U.s.a.$32,55 to The states$50,18 per thousand lids and 2 litre calabash containers from United states of america$0,sixty to US$0,69 in the first six months of the yr. The organization made a profit of United states$326 391 for the six months against a budget of US$733 765 and a profit of The states$711 031 for the previous twelvemonth.

"The two Mahewu flavours, namely, Peach Apricot and Traditional Extra Malt which were introduced in the previous quarter have washed exceptionally well hence increasing the competitiveness of our product profile in the marketplace," reads the written report.

Regarding the PET institute, the study notes that a eolith of US$265 000 has already been paid utilising funds acquired from the Reserve Bank of Zimbabwe auction market place.

"Application has been fabricated to Ecobank for a loan facility amounting to US$2 meg to finance the remainder of the The states$1 107 456 capital outlay. The loan facility is currently awaiting blessing by the depository financial institution's credit committee inside the next three weeks."

It was further revealed that they were also working on completing payment for a water filler for the water bottling project, with 50 percentage of the required US$335 000 having already been paid to the supplier and the remainder beingness paid off utilising internally generated funds.

"Management plans to learn two delivery trucks and ane interlink truck at an acquisition price of The states$90 000 and United states of america$261 000 respectively. The acquisition will be financed through the Ecobank loan facility amounting to The states$2 meg.

"The measure will ease reliance on hired trucks.

"The arrangement will exist targeting to sell 140 litres per 24-hour interval. The organisation also plans to larn one chiller every calendar month in the third quarter of 2022. And then far, the organisation has managed to purchase 2 chillers and this will raise sales and growth and visibility for our Mahewu product in modern trade outlets," reads the written report.

The performance report farther states that for the Mahewu product, the company will be introducing a buttermilk flavour with improvements to the recipe having already been finalised. The Sun News