Dairibord Holdings Limited Profile

Dairibord Holdings Limited is a manufacturer and marketer of quality food and beverage products. The company is listed on the Zimbabwe Stock Exchange (ZSE). The company is a prime example of successful privatization as it was originally a state owned enterprise established for the purposes of processing and marketing milk products which was successfully privatized by the Government of Zimbabwe. Dairibord Holdings has 100% ownership in Martindale Trading (private) Limited t/a Lyons, Lavenson Investments (Private) Limited, NFB Logistics (Private) Limited, Kutal Investments (Private) Limited, 60% shareholding in Dairibord Malawi (Private) Limited and 40% in M E Charhons (Private) Limited. Kutal Investments is a property holding company which leases its properties to Group companies. Dairibord Malawi (Private) Limited has 100% ownership in Mulanje Peak Foods (Private) Limited. Lavenson Investments (Private) Limited has a 100% ownership of Dairibord Zimbabwe (Private) Limited. The Group produces an extensive range of products which include liquid milk products (short and long shelf life milk), food products (yoghurt, ice creams, cheese, ice cream cone shells, condiments and spreads) and beverages (cordials, ready to drink dairy and non dairy beverages, teas, mineral water) which are marketed in both the domestic and export markets. Dairibord Holdings Limited is one of the largest manufacturing and marketing companies in Zimbabwe with factories in Harare, Chitungwiza, Bulawayo, Gweru, Kadoma, Mutare and Chipinge. The operations in Malawi are located in Blantyre and in the Mulanje District. Dairibord Holdings has a staff complement of slightly over 1,000 permanent employees.  History of Dairibord Holdings Limited 1  Parastatal Phase The Dairy Marketing Scheme introduced under the Agricultural Marketing Act  in 1951 established The Dairy Marketing Board on 1 October 1952 to provide for i. the reception of all milk delivered to it ii. the manufacture and orderly marketing of milk and dairy products iii.the administration of regulations applicable to producer registrations Prior to 1952, there were four (4) co-operatives throughout the country. These were: i.  Manicaland Co-operative ii. Matabeleland Co-operative iii. Midlands Co-operative iv.Mashonaland Co-operative The Matabeleland, Midlands and Mashonaland Co-operatives amalgamated to form the Dairy Marketing Board.  The Manicaland Co-operative which was based in Gaza in Chipinge only joined later in 1976. 1956 DMB became responsible for the activities of the Rhodesia Co-operative Milk Company  and the Bulawayo Creamery (Pvt) Ltd 1960 a new dairy was commissioned in Harare The Dairy Marketing scheme was incorporated as a schedule of the Agricultural Marketing Council Act in 1956, which remained in effect until 1962 Dairy Produce Marketing and Levy Act of 1961 superseded the Dairy Marketing Scheme on 18 May 1962 and applied to Northern and Southern Rhodesia. In July 1962 until dissolution of the Federation, the Board operated dairies in the then Northern Rhodesia as well as Southern Rhodesia In 1962 a new Dairy was commissioned in Kadoma During the same year, the Board took over activities of the Creamery in Mutare On 1 December 1967 the Agricultural Marketing Authority assumed the responsibility of the Board In 1965 extension of Harare Dairy took place and installation of a spray drier was undertaken There were  major extensions at Harare, Bulawayo and Gweru Dairies in 1970 In 1978  the Kadoma Cheese plant was commissioned In 1982 bulk collection of milk began 1983,  Chipinge Dairy was constructed The Harare Dairy UHT plant was  commissioned in May 1987 Official commissioning of the ice cream plant at Harare factory was done on  July 31 1987 1990,  new Bulawayo Dairy came into stream thereby increasing overall capacity 1994, Chitungwiza milk powder and butter plant was commissioned DMB operated as a state enterprise until the commencement of commercialisation. 2 Commercialisation Phase In January 1991, and under the Government’s Economic Structural Adjustment Programme, new Boards of Directors were appointed to be directly responsible to the Ministry of Agriculture for commercial viability, including subsidies, of each of the Agricultural Sector Parastatals. The Board put in place was tasked with turning around the loss making enterprise to a viable state enterprise. DMB had accumulated in excess of Z$180 million past unserviced debt Break-even was achieved in 1992 and between 1992 and 1994 DMB operated as a viable state enterprise On 1 July 1994 there was a change in DMB’s legal status, from a parastatal to a commercial company, Dairibord Zimbabwe Limited (DZL) under the Companies Act owned by Government 100%. In 1995 preparations for privatisation were undertaken, DZL became profitable, self-financing and with a virtually unencumbered balance sheet, being prepared for listing on the  Stock Exchange On 23 October 1996, Government announced plans to privatise state enterprises 3 Privatisation Process of privatisation was completed by June 1997 1 July 1997, Dairibord became the first state owned company in Zimbabwe to privatise with Government divesting  out 75% to private investors On 15 September 1997, Dairibord Zimbabwe Limited was listed on the Zimbabwe Stock Exchange A record 32 000 shareholders bought shares in the listed company Share offer was at Z$1.20 per share and was oversubscribed. 1998 DZL acquired  60% equity in Dairibord Malawi 1998  Government sold the remaining 25% equity to private investors June 2001 DZL acquired 100% ownership of  Lyons Zimbabwe business In December 2002 DZL acquired 40% shareholding in Charhons, a confectionary company A transport and logistics company NFB Logistics owned 100% by DZL was formed in October 2003 4 Restructuring In 2005 DZL restructured into a holding company with stand-alone efficient subsidiaries. In April 2006, the holding company’s name was changed from Dairibord Zimbabwe  Limited to Dairibord Holdings Limited in order to clearly demarcate the subsidiary Dairibord  Zimbabwe (Private) Limited  from the Holding company and  to clearly reflect the Holding company nature of the restructured entity