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Textile company undergoes reorganization
Jul '10
David Whitehead (DW), a textile firm has updated its business in to four key units, so as to lessen their exposure to loss making divisions and make it easier for them to manage.

As per DW's sources, the separate pricing of goods and services has led to formation of fabric, cotton wool, stockist and spinning production divisions.

DW got de-listed from the Zimbabwe Stock Exchange early this year and off late has been struggling owing to flawed wage bill, continuous breakdowns of machinery and endless labour fights, despite other challenges. Since then, the firm has reduced its labour force by over 50 percent.

Separating pricing of goods and services will help make the textile firm's operations much more useful, competent and also lessen the operating costs.

While operations at the Kadoma cotton wool and Chegutu stockist divisions have improved drastically, dearth in lint availability, affected operations at the spinning divisions in these areas.

Once upon a time, DW was the biggest textile manufacturing firm in Zimbabwe, employing over 3,000 people, but was severely affected by cold form of investments, political and economic environment. During the recent times, the firm was drastically weighed down by the descending productivity, boardroom squabbles, labour unrest and presence of red ink on its balance sheet.

For years, Zimbabwe's textile industry has been surviving on continuous power supply, economical labour, superior quality lint and competitive prices. But over time these advantages were lost, and several textile firms suspended, downsized or completely shut down their operations.

Fibre2Fashion News Desk - India

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