By James Anyanzwa
Marshalls East Africa is considering introducing additional models to boost its profitability after years of loss-making and boardroom wrangles.
The auto dealer is betting on "KIA" brand to grow revenues but insists it will be introducing one or two more brands by the end of the year to cement its position in the profitability territory.
The auto firm recorded a net profit of Sh181.5 million in the year to March compared to a loss of Sh344.7 million in 2010 in spite its sales dropping to Sh263 million from Sh604.8 million in a similar period.
The company lost the Peugeot franchise in 2007, ending a 47-year partnership Marshalls had with the France-based firm.
READ MORE
Man sues Safaricom in mobile phone number ownership row
Why LSK has sued AG, Health Ministry over Sh209b data deal with US
Judge Mwita defends decision in medical case where a child died
Consequently, investors have taken notices, as its shares have become the least sought after at the NSE and goes for weeks without trading.
"Moving forward we are introducing one or two top models, which we are not obliged to divulge at this time, but negotiations are at advanced stages, " said Fred Amayo, the company’s chairman.
Mr Amayo said the new models are expected by the close of the year.
"We have now come out of the red. Right now, Marshalls does not have any long-term borrowing. The company’s asset portfolio is intact," he said
"We have been selling KIA range of vehicles in the last three or so years. The future of KIA brand looks very good."
He was addressing shareholders during the company’s annual general meeting (AGM) in Nairobi on Tuesday.
The auto dealer hired Sanjiv Shah, the General Manager of Mercedes at DT Dobie, to take over from Rahul Sood on August 1, making him the sixth CEO in three years for the struggling auto dealer.
Marshalls is also seeking the franchise for Ashok Leyland and Foton East Africa, a Chinese heavy vehicle manufacturer that is seeking to build an assembly plant in Kenya.
"We have one of the best brands in KIA. KIA is a very important brand for us because it will get us out of the hole we have been. I’m very confident that with KIA we can move forward," said Sanjiv.
He said KIA was among the fast growing brands in Europe, US and West Africa.
"There are also other opportunities we are looking at and particularly in commercial vehicles," he said.
