Mamvura’s Market Minute
As written up elsewhere in Business Weekly, Innscor marks the 20th anniversary of its listing today and let us think just what has been achieved since it came to the market two decades back.
Three companies have been unbundled and Innscor was instrumental from saving one of our best brand names (Colcom) from sinking when it took a strategic interest in the protein group.
Up till then the focus has been fast food and tourism, but in the post-2000 era, it was the basics that mattered.
As with many companies, Innscor embarked on a less than successful adventure into the region during the downturn — consider the ill-fated moves by RTG and Zimsun that also tried to replicate their “model”.
In the years to come, economic historians will write up the hyperinflation period, a period that lasted longer than World War II, as our most challenging. Mostly it was adversity, but as we know now, the period was one opportunity for some.
Most of Innscor’s acquisitions took place during the era of the Z$ and the unbundling has taken place after dollarisation.
The question here to ask is what opportunities did Innscor have that other companies did not?
Certainly it had cash flow and better relationships with its bankers, but ultimately it had a smart group of people at its core that stuck to their vision.
The facts stand for themselves — today Innscor and its related companies increasingly account for a greater share of the overall market cap of the ZSE.
We need more companies like Innscor to create value the old fashion way.
The corporate graveyard in Zim is littered with many examples of how things should not be done and what stands up to the test of time is legacy.
While so many others have gone to the wall, Innscor still has at its core a profitable Rhodesian import substitution manufacturing unit. What gives them the edge in a globalised world?
Innscor has certainly achieved this through the competency of its leadership, which ultimately is what determines success.