News By Tag
News By Location
Follow on Google News
Innovative deal-making readies SA's premier mohair sock maker for export growth
The world's leading manufacturer of mohair socks, Cape Mohair, is uniquely positioned for export-led growth following an innovative deal that addressed its need for new machinery and extra working capital.
By: Cape Mohair
"Anuva initially approached us to manage the sock plant they had purchased out of the Impahla liquidation,"
The focus, post-acquisition, has been on exiting unprofitable retail contracts, repurposing the new plant and machinery for high-end sock manufacture and expanding the Cape Mohair product range. "We want to grow off our current base into the high-end of the market where we see a lot of potential, especially in exports," says Hobson. "Any bottom-end, high volume business that we retain is simply 'filler' to ensure that we fully utilise our manufacturing capacity".
Cape Mohair has come a long way since its humble beginnings some 25 years ago. Today it operates from 'state of the art' facilities in Elsies River and supports 130 jobs in the extremely competitive clothing manufacturing industry. The product range has grown over the years to include leisure socks, medical socks and outdoor sport and adventure socks – each made from different combinations of bamboo, cotton, mohair and wool fibre.
The Cape Mohair story illustrates the value in the section 12J scheme in that it empowered investors to complete an innovative deal that will set an already impressive firm on an even stronger growth trajectory. Thanks to Anuva and section 12J the business is adequately capitalised to meet its immediate operational needs – with a motivated investment firm as shareholder to assist with future capital intensive projects if needed. Hobson has ambitious plans to fully utilise the new sock manufacturing facilities on high-end production by 2022 and to double Cape Mohair's turnover by 2025.