eBusiness Weekly
Fradreck Gorwe
Zimbabwe Stock Exchange-listed company engaged in the reprocessing and retailing of imported and locally manufactured tyres, National Tyre Services (NTS), has a history that dates back to 1926, a year that coincided with major events in the rubber industry across the globe.
1926 had seen the establishment of a vast rubber plantation in Liberia by Firestone Tyre and Rubber Company as well as the establishment of the first tyre company by Dunlop Rubber Company (UK) in India.
NTS also do relugging of agriculture and earth moving tyres as well as procurement of truck tyres for the Zimbabwean transport industry. Product brands include Dunlop, Firestone, Bridgestone, Yokohama, Pirelli, Bandag, Regal and Comforser
In 1957, a new Dunlop factory curtesy of the Dunlop Rubber Company Rhodesia, was built in Bulawayo on a 44-acre site and it commenced tyre production in March 1959.
In 1963, the Sumitomo Group (Japan) acquired Dunlop Japan and renamed it Sumitomo Rubber Industries. With events stretching from this acquisition, Sumitomo effectively got control of the Dunlop brand across Africa and some Asian countries.
What ensued was an intricate web of mergers and acquisitions through which most of the current product brands and franchises were adopted.
The company got listed on the Zimbabwe Stock Exchange in 1969.
Rationalisation had dominated NTS’ growth strategy. In 1991, the retreading plant in Karoi was closed to rationalise operations.
In May 1995, the company extended the Graniteside complex to provide over 2000 square metres of storage space for imported tyres and locally manufactured products. During the year it further commissioned a new rubber mixing machine that improved production efficiencies.
In September 1995, the group acquired another retreading company and new tyre supplier, Treadmaster (Private) Limited, in a development that helped expand its core-business.
In 2004, retail branches, Mvurwi and Bindura, and Kadoma and Chegutu, were merged to rationalise operations. Another branch was opened in Harare CBD in collaboration with Duly’s.
The Mvurwi and Kadoma branches were later closed with considerations to acquire new sites using proceeds from the sale of properties from the two branches as well as properties from the Chiredzi and Masvingo branches.
Major milestone of the year was the acquisition of an ultra-modern Non-Destructive Inspection (NDI) machine. The machine uses Ultra-sonic sound waves to inspect the inside of a tyre and detect faults invisible to the eye. Faults are then eliminated to reduce breakdowns. This helped enhance the quality of Bandag retreads at the Harare factory. NTS is presently the only Zimbabwean company using the technology.
In February 2005, a new Kohler 350 kilovolts diesel generator was commissioned that guaranteed continuity in the event of power failures. As part of the ongoing rationalisation drive, the Zvishavane and Rusape branches were also closed.
Driven by a customer-centric ideology, the group in the year launched a Product support division as a value adding delivery centre.
In 2006, an Indian tyre giant Apollo Tyres acquired Dunlop Tyres International, the parent company of NTS’s subsidiary, Dunlop Zimbabwe (now Auto Tyres Zimbabwe). As a result Apollo acquired Dunlop’s operations in Zimbabwe.
Following increased operational activity in 2009, the Chinhoyi and Masvingo branches were opened in 2010.
On April 15 2010, NTS was recognised with a Best Manufacturing Franchise award by Bandag. Key suppliers like Apollo Tyres and Bandag South Africa extended credit terms to the company that helped sustain its working capital.
The Bulawayo factory was re-opened in 2012 following increased capacity utilisation at the Harare Truck retreading factory. The idea was to decongest the Harare factory. The Chiredzi Branch was also re-opened.
In 2016, two new branches were opened in Harare and Mutare. With the opening of a new branch in the Harare Market Square Area in 2018, exhausts and suspension services were introduced on a pilot basis.
In 2019, the Cripps Road Branch in Graniteside was upgraded into a modern shop and hence the flagship branch. The Samora Machel and Kelvin Road Graniteside branches were also refurbished and rebranded.
The company pivots towards further growth and productivity banking on the successful implementation of fiscal consolidation by the government through the Ministry of Finance and Economic Development.
As updated on February 4, 2020, the counter holds a market capitalisation of $6 549 908 and a share price of 2.58 cents.
Rutenhuro James Moyo currently chairs the group.
