Deal facilitated by Sefalana Mechanized Farming (PTY) Limited (MFL)
Botswana Railway (BR) expect to add eight locomotives to its fleet, procured by the Sefalana Group through their Mechanized Farming (PTY) Limited segment.
The coveted engines were obtained by virtue of a deal entered into last year between BR and Electromotive Diesel (EMD), a division of the Caterpillar Group.
“We are pleased to report that these have now been supplied through MFL,” declared the Sefalana Group Managing Director, Chandra Chauhan, who added that the related commission will be recorded in the second half of the financial year’s performance.
Speaking at the Group’s Unaudited Results Presentation at Cresta Lodge in Gaborone recently, the MD revealed the organisation has had to divert efforts from its MFL after recording non-profit in the segment, which consists of Commercial Motors (Pty) Limited (CML).
The two entities each contributed three and seven percent respectively to the Group turnover and profit before tax for the six months ended 31st October 2017, making it a small Group segment.
“CML historically relied on tender business, and over recent years has been focusing on growing its private sales as a result of a general decline in tender activity,” said Chauhan, who continued that during the current period, the business secured the sale of a number of vehicles to the private sector thereby improving its performance compared to the prior period.
According to a report from the Group, MFL continued to bear the strain of limited rainfall during the period which prompted a rationalisation of some of the business’s activities.
Lookign o the future, Chauhan revealed the Group is currently developing plans to house the MAN, Tata and Honda dealerships at one location in Broadhurst where, after extensive refurbishment, customers will be treated to a refreshed feel and look.
“The building will provide us with better visibility and access – this will provide us with additional efficiencies and provide a better customer offering,” he stated.