CORPORATE GOVERNANCE FINANCIAL REVIEW
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INCREASED INVESTMENT IN EFFICIENCIES WITHIN THE VALUE CHAIN Vertical integration of the business by means of a specialised focus on the parts of the value chain where Senwes operates , to identify further areas of opportunity .
TOP-OF-MIND RISKS
OBJECTIVES
Maintain a specialised focus on the parts of the value chain where Senwes operates to identify and implement projects that will enhance efficiencies and ensure improved service delivery .
• Political and economic risk .
• Market size and market share risk .
• Weather and climate risk .
• Urbanisation , scarcity and retention of skills risk .
• Transition and customer risk .
• Unique competitor risk .
• Diversification and agricultural industry risk .
For more detail on top-of-mind risks , see p . 87 .
LOOKING AHEAD
• Some areas of the grain value chain have been yielding good long-term returns and Senwes will continue its attempts to increase involvement and / or expansion into these areas .
• Continued capital investment focused on the upgrading and / or optimisation of the silo network , infrastructure and processes .
• Focus on more extensive internal participation in and optimisation of our own logistics network .
• The mechanisation and retail network will also be subject to upgrades , as time progresses .
REFLECTING ON THE PROGRESS TO DATE
• Grainovation was originally established as a joint venture with Imperial Logistics for the creation of a specialised and focused logistics company . Effective as from 1 November 2019 , Senwes increased its shareholding in Grainovation to 100 %, to seamlessly integrate the business with the group ’ s grain marketing solution .
• Senwes Grainlink has successfully rolled out large capital investment programmes to upgrade and / or optimise the silo network , technology , infrastructure and processes . Most notably , these investments have enabled faster grain intake , at higher moisture content .
• The Senwes Group gained access to the wholesale and distribution market through the distribution centre activities of Prodist . Initially Prodist was acquired through Hinterland with AFGRI and LRB ( Mica , DIY and House of Paint & Decor ). Hinterland held 75 % of Prodist and LRB 25 %. Hinterland bought LRB ’ s 25 % shareholding as part of a restructuring programme in August 2018 . Also , effective from 1 December 2018 , Hinterland Retail merged with Prodist . During the 2021 reporting period , the wholesale operations and distribution network of Agrinet were added to the Senwes Group as part of the Suidwes merger . Prodist ’ s operations have been integrated with Agrinet since 1 May 2021 .
• During the past two years , Bastion implemented various upgrades and capacity expansion projects at its operations in Buhrmansdrif , Marico and Britten .
• The IDC subscribed to a 49 % shareholding in Pelelani while Bastion Lime owns the remaining 51 %. The focus of this entity will be to investigate industrial lime opportunities to optimise the utilisation of lime resources .
• KLK upgraded the Upington and Kathu Build-It stores and also launched the Kathu Pet World .
SENWES INTEGRATED REPORT 2022
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