Trade Kings group expands detergent maunfacturing with $40million plant

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Luxminarayanan Subramaniam

Trade Kings Group is extending its production capacity with a $40 million detergent plant in the Multi Facility Economic Zone.

Trade Kings, the leading FMCG group in Zambia today announced the investment in new $40 million detergent manufacturing facilities to be located in the Multi Economic Facility Zone in Lusaka. The plant will be the largest manufacturing plant for powder detergents and other household products in sub-Saharan Africa.

This investment will address one of the key challenges in the economy – dumping and smuggling of low quality detergents from neighboring markets such as Tanzania. The low price of dumped goods allows imported products to gain unfair market share. It also creates artificial indication of gaps in the market and industry.

“This new facility will enable significant expansion of our production capacity in Zambia and this will contribute to curb malpractices such as dumping” said the Group General Manager, Luximinarayanan Subramaniam’’. We are aware the government is in the process of drafting the Trade Remedy Act to protect the domestic industries from the adverse consequences of dumping; this will enhance the Trade Defence Measures in the market place.

Through this investment, we will strengthen our manufacturing division of the group, which in addition to its regular activities is developing applications to address challenges and opportunities. This will in turn contribute to employment creation for the Zambian People.
The detergent manufacturing machines will include systems and equipment used to produce various forms of detergent powders. With the advancement of technology, the manufacturing techniques are continuously evolving and the group as part of its growth strategy has purposed to remain current with the technology to continue producing effective detergents for different cleaning applications.

It will cover a production area of about 30,000 square metres and enable an increase in the tonnage produced.

To authenticate the business being truly Zambian, Trade Kings Group is contributing to the drive of the industrialization policy that is designed to address issues of productive capacity for enterprises to promote the production and consumption of local products. We have responded to the championing of speeding up of industrialization process in the country by his Excellency the President Edgar Chagwa Lungu. We recognise the support both from the Ministry of Commerce and Trade and the Zambia Manufacturing Association. Our commitment to the Proudly Zambian Campaign remains unrivaled as demonstrated by our business strategy.

The Trade Kings Group has in the 20 years of its existence since inception, through its flagship brand BOOM, set a trend of locally produced quality and affordable products. The major variables influencing detergent brand choice in the Zambian market is attitudinal variables such as perception regarding the efficacy (QUALITY) of the brand, closely followed by the perception on the value for-money (PRICE).

The business is confident that the expansion will contribute to Economies of Scale, reduction of production costs that in turn results in lower prices for consumers. The Group states that various economies of scale will be achieved including in technical, specialisation of workforce, marketing, financial and purchasing.

This investment will see Trade Kings Group grow further in the regional market. By 2050, 60 percent of Africa’s population will be urbanised. Some of the fastest growing cities, including Dar es Salaam, Kinshasa, Luanda, and Addis Ababa, are in some of Africa’s fastest growing economies. Further, we have just commissioned a state of the art detergent factory in Zimbabwe as part of our expansion programme.

There are many other factors working specifically in favour of the emerging fast-moving consumer goods sector in Africa: (1) urbanisation (2) duties and pricing, and (3) local preferences, and (4) branding.

Most importantly, urbanisation is shaping the nature of demand and distribution for soaps and detergents. It is vital to this particular market as most urban consumers are consumers of manufactured soaps and detergents whereas there are still big rural populations that make their own forms of soap from locally available resources. As rural populations decrease and become urbanised, their tastes switch as result of more time dedicated to their work and their changing lifestyles. Trade Kings, with our goal of improving lives, are constantly responding to changes in lifestyles and tastes and our recent launch of BOOM Auto, specifically designed for use in washing machines, is just one such innovation.

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17 COMMENTS

  1. What about this WhatsApp audio of Kambwili Vs Amos Chanda quarrel that has gone viral? Clearly, the two are potential guests of Chimbokaila hotel in that:
    1. Chanda sounds so sure about the alleged murder of a Chingola man by Kambwili, and the maiming of a Luanshya man too

    2. But Chanda himself is also guilty of having knowledge of such a heinous crime and not reporting it to the police. Surely this cant be acceptable especially for someone working in the Presidency. Could it be because of the skeleton he too may have in his closet that he doesn’t want revealed?

    UTSOGOLELI UNASILA PA ZED
    UBUTUNGULUSHI BWALIPWA PA ZED

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    • Government spokesperson must quickly move in and assure the nation that Presidential spokes person has been censored as he risks bringing the name of the President in to ridicule. Amos Chanda has no right to insult somebody older than him like that, though this Kambwili also provoked the situation by phoning Amos even when he has taken to court. Religious Affairs Minister, Christian nation, insults are flying from the high echelons. Official government responses, you cant say this is between two people No. Are we going to ignore such insults that are in public domain and wait for October 18th, the day of reconciliation.

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    • Lungus presidency has zero morals and intergrity…..lungu watched a kaizer Zulu his advisor roughed up a police woman in front of a packed international stadia and done nothing…..lungu does not care how the office is percived.

      If he can accept to be called a corrupt theif just know he does not give a sh.it about morals and integrity….

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    • Instead of commenting about positive issues of development, you comment about gossip!!
      Get out of here!

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    • You want to comment on useless issues about two kids insulting each other instead of development…take your rubbish to your Facebook page if you can not contribute to the topic at hand.

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  2. Projects such as this one by these so-called Trade Kings are welcome in desparate nations like Zambia. However and much as corruption, false accounting and avoiding to pay Tax, thefts/frauds and other vices, it’s extremely important that the Government of the day should also prop up it’s security wings/systems by revamping departments such as ZRA, trading standards etc, and even the Police Services. I hope that this current “Lungu clique” of sophisticated thieves and crooks are following these new developments.

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    • Trade Kings is a wholly Zambian company…I would rather have two of these manufacturing companies than 10 Chink and RSA shopping malls enjoying tax parachutes.

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  3. You Foool @ Nkope Shinyenga you started your article well, but you finishing is very pathetic!!

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  4. This is a welcome move by TK. Filling up the void created by Unilever. A decade ago the FMCG’s in the same industry underrated you but out you is born a giant able to compete at regional level.

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  5. Under5s as usual are shying away from the real issue of manufucturing happening right in their country by a local firm. They condemn foregn investors as well as local investors because this development is not happening under the leadership of THAT ONE . We know you cretins.

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    • This is not the kind of information they like. Whenever we have great news from local companies, that is not attractive to them at all.

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  6. Ba observer please don’t use insulting language on me. I am nearing 70 and what l know and have been through, you don’t know so please, respect the elderly. Thank you

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  7. this is good news. something positive. been watching this company grow, kwati ni boza. their packaging of their products, the adverts have greatly improved.

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