Sameer Africa is set to diversify its product offering as it seeks new revenue streams to counter the influx of subsidized imports into the Kenyan market.
The move includes consolidating Sameer’s position as the leading tyre manufacturer with three brands and by containing expenses by exploring new manufacturing alternatives.
“We have set about developing a new road map for our business strategy going forward. The highlights include adopting a three brand strategy for the tyre business, producing YANA in cost effective jurisdictions in China and India and expansion of our Yana Tyre Centres which will also come with a wider service offering for our customers,” said Sameer chairman Eng. Erastus Mwongera.
He added that the company is continuously streamlining its operations to ensure customers receive world class products and services in line with global standards.
“Our focus is on maintaining a healthy top line and bottom line with the priority being profitable growth, increasing operational efficiency across the Group, re-aligning costs to protect margins and managing working capital to ensure maximum cash generation from operations,” said Mwongera.
Sameer, who published its 2015 financials late last month reversed its 2014 loss of Sh 69 million, as its gross profits increased by a marginal three percent from 2014.
Despite the improved bottom line, the company will not be issuing any dividends for the year ended 31st December 2015.
Notwithstanding the challenging macro-environment, the company’s operating expenses decreased by nine percent in 2015 as compared to the previous year due to stringent cost control efforts across all operations and territories.
Sameer Managing Director Allan Walmsley reiterated that the regional bloc needs to put policies in place to protect local manufacturers against unfair competition from Asian countries.
“Kenya and other African markets are yet to implement initiatives such as countervailing and anti-dumping duties to counter the influx of subsidized tyres and other products from the East,” said Walmsley.