SUNBIZ

Basic Industries Invests, Given Boom In Construction

Basic Industries Limited is expecting very busy next few months as the local construction industry continues to boom. General manager, Mosese Volavola, said with bulk of construction taking place in
08 May 2015 09:26
Basic Industries Invests, Given Boom In Construction
The six trucks which have been custom-built in China for Basic Industries Limited. Photo: RAMA

Basic Industries Limited is expecting very busy next few months as the local construction industry continues to boom.

General manager, Mosese Volavola, said with bulk of construction taking place in terms of the road, that alone has driven the construction industry to its current trend.

“So right now most of our business is supplying these road projects, but having said that we now see that private and commercial building is also picking up,” he said.

“We can see it will continue to grow, just looking at the projects that are currently on going now,” he said.

Looking back at their figures, the last peak period for Basic Industries was in 2006.

Mr Volavola said since 2006, the volumes had been dropping up until 2012 and 2013 which was when they started to see some turn around.

Investment

Looking at the growing trend, the Fijian Holdings Group subsidiary decided to make some big investments particularly buying new trucks.

The six trucks were custom-made in China as per Basic Industries Limited’s specification before being imported.

The trucks have been brought through a joint venture partnership with the Lorry Owner Drivers who work exclusively for the company.

This means the Lorry Owner Drivers own the truck whilst Basic Industries owns the bowl of the truck.

Around $800,000 was invested on the new trucks of which 60 per cent was invested by the Lorry Owner Drivers and the remaining 40 per cent by Basic Industries.

Mr Volavola said this investment was significant but it was a small percentage of their totally investment.

“We have been investing into our plants and other machinery like loaders and excavators.

“We are confident in the market and our company has decided to invest. Buying new trucks means investing and of course shareholders want a return on this investment.

“We can see that there is a big opportunity to get a return because the market has grown over the years.

“For our business volumes plays a major part if you push a lot of concrete volumes then our business makes a profit.”

Feedback:  rachael.nath@fijisun.com.fj

 




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