LR Investments is a manufacturer of Fast Moving Consumer Goods (FMCG’s). Its core offering is the local manufacture of a popular ready to drink dairy and fruit blend product.    The company also manufactures disposable baby daipers and household detergent targeted at the lower and middle income population.

Why Invest:

• Real GDP growth of 9% (IMF) in 2010 has resulted in a fast growing consumer base.
• Company order book is full and the firm is struggling to keep up with demand from large established customers. Sales volumes can be doubled easily with adequate working capital.
• Good quality products approved by the national standards board that offer good value relative to imports, Zimbabwean consumers overwhelmingly prefer locally made food products.

This current transaction will be focused on the Dairy Fruit Juice, that is distributed through general retailers, wholesalers, and fast food outlets. The company counts established distribution players such as Food King, Savemore and FoodWorld who have ready access the LR’s core target market – the low and middle income consumer. 60% of dairy processed products in Zimbabwe are still imported, putting LR in a strong position to tailor its products and communications a lot better than its external competitors. The company has orders in excess of 75 000 units per month of its dairy fruit drink, volumes that can easily be multiplied with sufficient working capital.