BULAWAYO based leading pharmaceutical concern Datlabs Private Ltd capacity’s utilisation plunged to 40% this month from 60% recorded in the same period the previous year owing to depressed sales.
Datlabs chief executive officer Todd Moyo told Southern Eye Business on the side lines of a Zimbabwe National Chamber Commerce (ZNNCC) tour of the company on Wednesday that the prevalent liquidity crunch has resulted in the rapid decline in sales volumes.
“Capacity utilisation has dropped to 40% from 60% we achieved last year because of the persistent liquidity crunch which has seen a decline in the demand of our products,” he said.
“We have the capacity to operate even at 80% but demand is low and this has forced us to scale down production volumes.”
Moyo, however, said the company was implementing strategies to penetrate foreign markets in countries like Kenya and Ghana which expects to improve sales volumes by year end.
Datlabs last year also launched a new Camphor Cream brand called CamphaCare following Tiger Brands’ withdrawal from having the local pharmaceutical giant produce and market Ingram’s Camphor cream in Zimbabwe.
The company produces half a million jars of Camphor Cream every month, and is the leading Zimbabwean pharmaceutical and personal care company producing brands such as Cafemol, Panado, Solphyllex and Lanolene Milk. It employs about 200 people in its Bulawayo factory and Harare offices.
The pharmaceutical company is on recovery and growth drive after it last year announced to invest $2 million for the refurbishment of its intravenous fluids manufacturing factory in Bulawayo, which stopped functioning over five years ago.
The intravenous fluids manufacturing plant, which has been non-functioning for close to 10 years was from last year undergoing care and maintenance.
Intravenous fluids are administered directly through the circulatory system.