Namcor targets N$5 billion revenue

… As rebranding sets pace for income-generation

By Patience Nyangove

NAMCOR has set itself a revenue target of up to N$5 billion by 2021, with a massive chunk expected to come from the parastatal’s new initiative in the fuel retail market.
In an interview with Confidente, Namcor Managing Director, Immanuel Mulunga, also disclosed that the company is in good financial standing, as its balance sheet currently stands at N$1 billion.
“We are targeting revenue of N$5 billion by 2021 – that’s our ambition when my term comes to an end. Namcor is doing well financially. We don’t go to treasury begging for money. Currently our cash position is at N$450 million, while our balance sheet, in terms of revenue and assets, stands at N$1 billion,” he said.
Mulunga added that Namcor hopes to have dealer-owned and dealer-operated service stations by November, where the company will brand privately owned service stations, and supply the entities with fuel.
The country recently completed a rebranding exercise, as part of its strategic plan to become a multi-billion dollar revenue-generating entity within the next few years.
Mulunga also disclosed that the parastatal had obtained a N$50 million loan from the National Energy Fund (NEF), which it intends to use to open up three company-owned dealership operating sites.
“We will invest the money in setting up three service stations operated by a dealer. The service stations will be in Otavi, Ongwediva and at the Hosea Kutako International Airport. By end of April next year, there will be five Namcor branded service stations across the country,” Mulunga said.
Mulunga said at last month’s Namcor’s rebranding launch that the parastatal was ready to make its long-awaited entry into the fuel retail market.
“This entry into the very competitive retail fuel market will require an aggressive and refined marketing strategy, given the long existence of the international players, with strong brands, currently operating in the country. The company will enter the market and roll out its retail strategy via organic and inorganic growth. “Whereas an organic network development strategy entails the construction of NTIs (new-to-industry) retail fuel outlets, an inorganic development strategy entails the purchasing of the infrastructure of existing players or through the takeover of DODO (dealer-owned dealer-operated fuel retail outlets). The key markets in Namibia are the central, coastal and the northern areas,” Mulunga said.
He said that Namcor will also roll out IECs (integrated energy centres) for the provision of petroleum products in rural areas.
“Namcor’s downstream strategy is to establish and secure strategically located fuel and lubricant distribution networks, as well as sales infrastructure, to boost the company’s brand and provide a world-class service to our valued customers and business partners.
“In line with this downstream strategy, Namcor took a decision to enter the retail fuel business by setting up retail fuel outlets (petrol service stations) in Namibia. To accomplish this successfully, a brand strategy had to be developed to serve as a brand guideline for Namcor’s envisaged retail fuel network. The brand strategy will serve as the foundation upon which Namcor will develop what is known as a retail visual identity (RVI). A RVI is a standardised approach, detailing various visuals and operational elements, on how to actually present and built a successful retail fuel brand. The purpose of the RVI is to enable Namcor to effortlessly enter the retail fuel market, attract the right partners (service station operators) and most essentially, improve the security of fuel supplies in the areas where its service stations will be located,” Mulunga said.