Group aims to become a P10 billion company
Sefalana Group has set itself an ambitious target of becoming a P10 billion company in the next five years.
This was revealed by the Group’s Managing Director, Chandra Chauhan, when briefing stakeholders recently about Sefalana’s 2018 financial year.
Though Chauhan maintained the company will be cautious in its expansion strategy especially in the local market, he is confident the Group will be able to realise such a dream.
He explained it will achieve this by continuing to focus on Fast Moving Consumer Goods (FMCG) and other supporting segments such as manufacturing.
The recently launched Sefalana Catering is also expected to play a significant role in the company’s growth.
According to Chauhan, the group will also continue with a cautious and focused international expansion into Lesotho, South Africa and Namibia.
The Sefalana Group MD noted they have realised a cautious expansion is the way to go, and says so far the model has worked perfectly well.
According to Chauhan, expanding into the regional market naturally creates exposure to foreign exchange gains and losses.
“I have said in the past that our competitor in Botswana was running a good viable business. In the past, investors have asked us why we are not expanding as fast and robust as our competitor,” said Chauhan.
He said the group’s strategy is to first grow the business in the Southern African region before it can consider expanding to other parts of the continent.
Meanwhile, Chauhan says they have observed signs of recovery in the local market as consumer spending and confidence appears to be improving.
These include consumers visiting stores more often and basket sizes growing.
Shifting his focus to the Group’s financial performance in the last year, Chauhan said Sefalana has achieved its best performance to date following a period of difficult trading conditions.
This has been achieved through focusing on cost saving initiatives and extracting greater value from its diversified group of businesses across the region.
The group also achieved its best performance by focusing on margin improvements through enhancing procurement activities.
As a result, Sefalana achieved profit before tax of P0.25 billion, representing a 12 percent increase compared to the same period last year.