Monday 6 December 2010

Rainbow Bottled Water Has the Potential of Breaking through the Zambian Market

Choma’s Rainbow Purified Water Limited has the potential of increasing its production capacity and finding a niche on the Zambian market if only the company can improve on marketing and logistics.

The general manager Xu Ying said that the company had the prospect of doubling its current production levels if more cash is injected to enhance marketing of the product. Current production stands at 12,000 by 500 milligrams bottles per eight hour shift.

Mr Ying further said that the other problem that the company was facing concerns some members that took mineral water for resale and fail to channel the money back into the organisation.

But in spite of the hiccups the company has managed to create 13 permanent jobs and if production came to full capacity employment opportunities could be raised from 13 to 75, observed Mr Ying.

The mineral water being produced by Rainbow was of high quality and is certified by both the Zambia Bureau of Standards and the University of Zambia laboratory.
Rainbow water is subjected to a full blown technical and scientific process. Mr Ying revealed that some of the companies in the business do not cover the full distance of water processing leading to production. They only go as far the exchange and fine purification process without reaching reverse osmosis, which Rainbow does proficiently, on top of another upward process known as ozone sterilisation.
He and other officials dispelled a myth by the local people alleging that mineral water produced by Rainbow was associated with Satanism and that it was sourced from the mortuary.


A visit to the plant revealed that the source of the water is a borehole within the company premises that has a pipe running from the borehole to the plant.

“There is no contact whatsoever with water from that borehole with any outside source, and people spreading this rumour are simply being malicious and have evil intentions, added Mr Ying.

But he was of the view that the company needed to acquire a big truck to transport the mineral water to customers that are located mainly within Southern Province in Livingstone, Maamba, Kalomo, Mazabuka and Monze. Outside the province, the product is supplied to Ndola on the Copperbelt. But great effort is required to get the product to other provinces and towns, especially Lusaka that provides the biggest market.

Rainbow’s profitability is lowered by the fact that the low valued mineral water is transported at high cost by third-party logistics service providers.

Although in theory railway transport is supposed to be cheaper over a long distance than road transport in relation to bulk consignments, Mr Ying claimed that it was more expensive to deliver mineral water using the Railway Systems of Zambia (RSZ). He claimed that RSZ charged a higher rate based on passenger coach and using passenger compartments.

Mr Ying praised shareholders of the joint venture China-based Sino-Australia and Africa Union Holding Limited of South Africa, adding, the company has the ability to rise above the challenges with the first step being investment in a bulk carrier truck to help reduce on transportation costs.

Mr Ying said Sino-Australia was connected to the Chinese government and that Zambia and Choma in particular stands on a threshold of more industries being established depending on the success of the water project.

Africa Union Holding Limited is linked to Mr James Ndambo, MHT member No. 1 who is the executive chairman. It is Mr Ndambo’s wish that when the company begins to be profitable and shareholders declare a dividend, that will be passed on to MHT to further the organisation’s aim.

MHT registered under the Society’s Act of Zambia CAP 119 of the Laws of Zambia is headquartered in Choma and has membership in 13 countries; Argentina, Botswana, China, the Democratic Republic of Congo (DRC), Holland, India, South Korea, the United Kingdom (UK), the United States of America (USA), South Africa, Zambia and Zimbabwe.

It started predominantly as a club for people who hailed from Choma, or did their education in Choma or, are married to people whose roots are in Choma, or had a business or, had once worked in Choma. So one had to have a connection with Choma in one way or the other, but this has changed because MHT has assumed international dimension and people from anywhere in Zambia or any part of the world are eligible to become members as long as they buy into the idea after they read the constitution and agree with its concept.

Consequently the organisation has managed to register chapters in the USA, the UK, Petauke and the Copperbelt Province of Zambia.

While many industries in Zambia do not care about the disposal of packaging, Rainbow has decided to bring in a machine to recycle plastic bottles. The machine chops the used plastic bottles into small pieces that are then used as material by other industries.

By Humphrey Nkonde
And Humphrey Lombe

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