HARARE-Transerv which retails automotive spares by utilising multiple channels, will turn 10 years in May this year marking a milestone in a journey which has seen it emerge as part of larger conglomerate listed on the Zimbabwe Stock Exchange.
The business has been profitable since its acquisition by Innscor in 2015. Innscor acquired an initial 26.01% in Transerv as part of the group’s restructuring ahead of the unbundling of the specialty retailing business.
Transerv operates through a network of its homegrown branded Transerv retail branches, franchised Midas retail branches and numerous fitment centres.
In the latest 6 months period to December 2018, Transerv reported a 4% growth in revenue, which was sharp decline from a 31% growth achieved in the full year to June 2018. Likewise it was a far cry from the growth margins recorded at TV Sales and Distribution Group Africa, units which complete the Axia group’s core operations.
Transerve was established in 2002 initially as a cross border transport company also importing automotive spares for light vehicle workshops.
Transerv capitalized on a niche market opportunity that arose in the spares wholesale market supplying larger operators with fast moving stock.
Following Zimbabwe’s dollarisation in 2009, the wholesale market became more competitive and a decision was taken to expand into the retail space with the first retail branch opened in Graniteside in May 2009.
Today Transerv employs 350 employees, and utilises multiple retail channels to service the needs of its customers, operating through a network of 24 shops with 21 being branded Transerv and 3 branded as Midas.
The company also owns 15 Fitment Centers, an Auto Cycle Centre, Zimbabwe Spares Wholesalers, a diesel pump room (ADCO) and a Clutch and Break Specialists (CBS). The shops operate on a total of 5,050 square metres spread across the across.
Listed entity Axia, has since increased its stake in the company and now controls 51% up from 26%, 3 years ago.
-Equity Axis News
