Senwes Integrated Reports Senwes 2014/2015 Integrated Report | Page 29

POSITIONING OF THIS PILLAR PRODIST Well-positioned through retail networks, marketing structures (JOINT VENTURE WITH AFGRI AND LRB) Prodist is a wholesale distributor of agricultural requirements, hardware, general merchandise and irrigation products. It is focused on the development of an efficient channel of supply into the agri-business and SHAREHOLDING hardware retail store markets in South Africa and neighbouring countries. Through distribution centres in Johannesburg and Bethlehem, Prodist imports bulk products which are then repackaged and distributed to retailers. 37.5 PERCENT OPERATIONAL PERFORMANCE Prodist is the group’s bulk warehousing solution and similar to Hinterland, it is focused on top line growth and optimising efficiencies. The brand is also making notable market share inroads. Prodist’s performance is progressing slower than projected, but moving in the right direction. (JOINT VENTURE WITH NWK) SHAREHOLDING mechinisation needs. STRATEGIC OBJECTIVES OF THE INPUT SUPPLY CHANNEL To be the supplier of preference to agricultural producers in respect of all their input requirements. INPUT SUPPLY Revenue* Cost Profit Net profit margin ROCE 2015 R’m 2014 R’m 1 463 1 374 89 6% 30% 1 552 1 472 80 5% 40% *Revenue of joint ventures excluded. GEOGRAPHIC FOOTPRINT GRASLAND ONDERNEMINGS 50 PERCENT and product ranges to meet agricultural and public retail and Grasland is an agricultural lime production and marketing enterprise. Its mining operations consist of 4 lime mines in the Northwest province which supply dolomite and calcite agricultural lime, mainly to farming operations. Hinterland Prodist, Farm City and Dormanko Senwes Mechanisation Workshops Senwes Mechanisation Whole Goods and Spare Parts JD Implements Grasland Ondernemings OPERATIONAL PERFORMANCE Despite being under volume pressure due to the same dynamics experienced by all input channels, the joint venture still delivered positive results. We have made management changes at Grasland with a view to creating a new and more diverse strategy for the lime resources at our disposal. Grasland Ondernemings (Edms) Bpk Klerksdorp JD IMPLEMENTE Klerksdorp Senwes Senwes INTERGRATED INTEGRATED REPORT 2015 27