Tanelec Limited, a subsidiary of Trans Century PLC has embarked on an ambitious expansion strategy to impact the manufacturing and distribution of transformers, switchgear, and metering units in the East and Central Africa region.
Tanelec Limited is 70 percent owned by Trans Century PLC and 30 percent by the Tanzanian government.
The company’s Chief Executive Officer, Mr. Zahir Saleh said the expansion strategy project cost estimate is valued at USD 15 million over a 5-year period.
“The expansion plan is hinged on the implementation of our three key business strategy focus areas which include 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,” said Mr. Saleh.
He noted that currently, Tanelec Limited has the capacity to manufacture about 14,000 distribution transformers per year at its factory in Arusha, Tanzania.
The CEO added that the company is able to repair up to 500 transformers per month equivalent to 6,000 units per year.
“In Tanzania and Rwanda, we have 90 percent market share with Zambia accounting for about 75 percent 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 we 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,” Saleh said.
He noted that 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 a service and repair division.
Further, the CEO noted that 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,” added Saleh.
Trans Century Group Chief Executive Officer, Mr. Ng’ang’a Njiinu said Tanelec is one of the most profitable businesses in the group and we are very proud of its achievement.
“The company is contributing about 40 percent of our total earnings as a group and we will continue supporting its expansion strategy in the East and Central Africa market,” said Njiinu.
He noted that 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 centre.
By Catherine Muindi