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Property investments spur windfall for PG

Eric Chiriga

BUILDING materials manufacturer, Plate Glass Industries Ltd (PG) is experiencing growth in sales volumes as more people are investing in property as a hedge against the gall

oping inflation in the country.

“It’s encouraging that volumes have peaked up in the domestic market. Turnover increased to $12,8 million from last years’s $1,5 billion as a result of increased sales volumes in both the domestic and export markets,” said PG chief executive officer Gerald Mujaji.

Investors have resorted to investing in property rather than shares because there is no guaranteed return from shares due to inflation and many shareholders are losing out on the stock market.

Investing in property has emerged as a wise investment decision because of the appreciation in property value as compared to spiraling inflation.

Inflation has reached 455,6% for September but analysts anticipate it could reach 1 000% by year-end.

In its restructuring process, the PG group acquired a 70% stake in Gestap Investments (Pvt) Ltd which trades as Zimtile for $4,21 billion.

The deal became effective on July 1.

Since its acquisition, Zimtile has contributed $2 billion to the group operating income.

The acquisition will widen the product line of the group making it a provider of a diverse range of building materials.

The board manufacturing section of the group recorded a turnover increase of $12,8 billion from $776 million in the prior year.

“The operating margins have improved due to firming of prices in selected export markets and improvement in the product mix for both raw board and value-added products,” said Mujaji.

The group has embarked on a project to upgrade its computer infrastructure.

PG Industries incorporates PG Safety Glass, PG Glass Zimbabwe, PG Building Suppliers, PG Timbers, Zimboard Products and Johnson and Fletcher.

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