-Chairman says new automotive and services division will spearhead transformation

By Navendra Seoraj
IN responding to the growing demands and needs of Guyanese, the Banks DIH Group will be investing in the transportation and renewable-energy sectors.
“We will be the future of transportation and alternative energy,” said Chairman of the local conglomerate, Clifford Reis, in his address to shareholders at the company’s annual Shareholders’ Meeting, on Saturday.

He reminded shareholders that they live in a rapidly-changing environment, where science and technology influence every aspect of life. And, Reis believes that by ignoring this reality, the company would be doing so at its own peril.

In keeping up with the changing times and making sure that it is not left behind, the company will be looking to expand its manufacturing, wholesale and retail sales base, and financial services. “The economy, which is poised to undergo dramatic changes, will bring new challenges, demands and realities…we have already seen an increase in the demand for additional housing and industrial zones to satisfy the increasing manufacturing capacity,” said Reis, adding that, with Georgetown practically running out of space, persons had to search for housing and jobs away from the city and surrounding areas.
The “new reality” has accelerated the need for mobility and the demand for vehicles and other methods of transportation.

Directors of Banks DIH Ltd., in responding to the new reality, has commenced discussions with the manufacturers of a brand of motorcycle, which the company hopes to import and sell. Reis, while not disclosing the manufacturer, said the model of motorcycles are considered to be more attractive and cost-effective than those on the market. The company is also exploring the possibilities of securing the rights for a car dealership from a “recognised” manufacturer of motor vehicles. According to Reis, this initiative will complement the company’s vision of satisfying the nation’s transport needs.
In addition to the transport sector, the company, as part of its “diverse business model,” had installed solar energy at its Qik Serv restaurants, in an effort to reduce energy charges. “After noticing the results, a decision was taken that we will convert all areas across the company to the use of solar energy, utilising solar panels to be mounted on the manufacturing plant and office buildings,” said Reis, adding that their plan does not stop there.

In addition to utilising solar for its activities, the company is also investigating the methodology of sourcing and importing PV panels and related equipment, in order to offer a service.

The transportation and renewable energy activities will be spearheaded by the company’s new “Banks Automotive and Service Inc.,” which will be located at the group’s Demerara Park.

“Despite all of this, we cannot and should not cultivate the luxury of thinking that we have accomplished everything that can be accomplished…we must continue to build,” said Reis.
In reflecting on the achievements in 2019, he said Banks DIH Ltd. Group’s third party revenue was $32.917B compared to $30.518B in 2018, representing an increase of $2.4B or 7.9 per cent. The trading profit from operations for the group was $7.5B when compared with $6.8B achieved in 2018, representing an increase of $692M or 10.1 per cent.
He said the profit after tax attributable to the shareholders of the parent company was $4.8B compared to $4.2B in 2018, an increase of $611M or 14.3 per cent.
Meanwhile, revenue generated by Banks DIH (the company) was $29.5B compared to $27.4B in 2018, an increase of $2.1B or 7.8 per cent. The profit after tax for the company increased from $4B to $4.5B, reflecting an increase of $439M or 10 per cent.
“For the greater part of 2019, we were challenged to adjust the impact which rising fuel prices had on the company’s revenue streams. This challenge, among others, required prudent management of the financial and human resources,” said Reis.
The company was, however, able to get over its challenges and managed to improve its capacity by installing an increased storage capacity of potable water and equipment to accommodate increased production of the ice cream products and new flavours of Frostee products.

He said too that the Trisco modernisation project continued in 2019 with the installation of new packaging equipment to produce new and exciting packages for biscuits. The list includes those for the Midwest range of biscuits and cookies, as well as whole wheat crackers.

In addition, the expansion of the security system via the installation of additional night vision cameras, as well as the installation of additional freezers, beverage coolers and water dispensers, were among the progressive moves made by Banks in 2019.