By John Kariuki
Tanelec Limited, a subsidiary of TransCentury PLC has embarked on an ambitious expansion strategy in a bid to impact and control the manufacturing and distribution of transformers, switchgears, and metering units in East and Central Africa region.
The expansion strategy project cost estimate is valued at USD 15M over a 5-year period.
Tanelec Limited Group Chief Executive Officer, Mr. Zahir Saleh said, “The expansion plan is hinged on the implementation of our three key business strategy focus areas which includes an increase in the power supply and the power quality to the consumers, leveraging on building and contractual of power and infrastructural supplies in the region and engaging in big data mining analysis and helping utility companies derive intelligence from this data for the benefit of the end-users.”
Currently, Tanelec Limited has the capacity to manufacture about 14,000 distribution transformers per year at its factory in Arusha, Tanzania. In addition, the company is able to repair up to 500 transformers per month/6,000 units per year.
TransCentury Group Chief Executive Officer, Mr. Nganga Njiinu said, “Tanelec is one of the most profitable businesses in our group and we are very proud of its achievement. The company is contributing about 40% of our total earnings as a group and we will continue supporting its expansion strategy in the East and Central Africa market.”
The company is currently the predominant provider of distribution and power transformer refurbishment and repair service in the region boasting the largest and most equipped repair center.
“In Tanzania and Rwanda, we have 90% market share with Zambia accounting for about 75% of our market share. For the Kenyan market, we have started making inroads having established our Tanelec Limited Kenya office recently and we are hopeful that will be able to get a sizable piece of the market in the near future considering the products that we have already introduced in the market,” added Mr. Saleh.
Tanelec’s list of innovative products includes distribution transformers at all ratings up to 36 Kilo Volts, low and medium voltage electrical switch gears, metering units, line materials and accessories and it also has as a service and repair division. The company also has the capability to repair products made by other manufacturers with the possibility of repairing transformers for a maximum of 50 percent of the cost of buying a new unit.
“We recognise that our own success can provide increased employment opportunities for the local community as well as providing business opportunities for service and supply sectors in the entire region. Creating local added value is important to us and to our contribution to the country and regional economy,” said Mr. Saleh.
Tanelec Limited is 70% owned by TransCentury PLC and 30% by the Tanzanian government.