Witness Wayside's fall and the rise of a retail giant that took on established chains in Botswana and beyond.
Embark on a journey with me to explore Choppies Enterprises Limited listed on the Botswana Stock Exchange (BSE).
THREAD 🧵: Discover Choppies!
In 1986, the Chopdat brothers turned their father's legacy in Botswana's first town into a retail empire. Now, their store battles to stay afloat as South Africa's shadow alters their trade landscape, drawing in traders from Zimbabwe and Zambia.
1992, Indian accounting grad Ramachandran Ottapathu plunges into auditing at Mazars in Botswana. His debut task? Balancing the books for Wayside Supermarket sparks his passion for business. Embracing the challenge, he breathes life into the ailing retailer,
1993, Wayside Supermarket hits profit in Lobatse. They open a second store, then launch Gaborone's Friendly Grocer franchise within 6 years.
Four years later, Choppies is born from the consolidation and rebranding of these stores into a single, powerful brand
2003, Choppies seized opportunities in Botswana's surging market by swiftly expanding during a period of economic turmoil and a devalued currency. With a solid cash reserve, Choppies capitalized on the market shift while competitors downsized and retreated.
2008, Choppies makes a bold move into the South African retail scene with a store in Zeerust, North West province, strategically located near Botswana. 4 years later, a distribution center in Rustenburg is established to support its growing network of stores.
2012, 1.2 billion shares debuted on the BSE at P1.15. 3 years later, a secondary listing hit the JSE. The following year, a bold move into Zimbabwe was made through the acquisition of Sai Enterprises under Raji Modi's leadership which operated Spar franchises.
2016, Choppies expanded rapidly to Zambia, Kenya, Mozambique, and Tanzania but trouble soon followed. The ambitious move proved costly, leading to significant losses. Now, Choppies exits South Africa, Kenya, Mozambique and Tanzania.
2023, Kamoso Africa is 76% BOUGHT OUT! Only 24% left with Botswana Development Corporation (BDC). Known for brands like Liquorama, Builders Mart, and Mediland, this company means business in consumer products.
#2. Operations:
Choppies Enterprise Limited is an African focused grocery and general merchandise business which operates a total of 177 stores and 10
distribution centers across 4 countries namely Zambia, Namibia, Botswana Zimbabwe.
The stores currently offer a wide range of products which include but not limited to groceries, fresh fruit & vegetables, bakery, takeaways and financial services/value added services. The business offers products according to the customer type.
Choppies operates 5 store formats which are based on size of the store namely. 8 Hypers, 129 Superstores, 20 Valuestore, 18 Hybrid Store, 4 On the Go. Choppies On The Go is a convenience store at fuel stations but currently based in Botswana only.
177 stores in operation which are as follows Botswana 99, Zimbabwe 33, Zambia 31 and Namibia 14. The distribution centres are spread as follows 5 in Botswana, 2 in Zambia, 2 in Zimbabwe and 1 in Namibia. The business is exploring the Choppies Fried Chicken CFC
#3. Competitors,
Shoprite
Sefalana
Spar
Pick n Pay
OK
Checkers
#4. Challenges
Reduced supplies of fresh produce due to drought.
Uneven playing field between formal and informal retailers.
Inflationary pressures
High staff turnover
#5. Share price,
0.47 BWP per share as at Feb 28, 2024
0.48 BWP per share on the 3rd of January 2024
34th on ranking in terms of year to date performance on the ZSE
16th most traded stock over the past 3 months to 29 Feb 2024
1,824,461,674 issued shares
#6. Shareholding,
28.96% is controlled by Ramachandran Ottapathu who is credited with turning around Choppies.
17.18% is held by Farouk Ismail the patriarch of the Chopdat family which started Choppies as a general dealer.
12.36% is held by Ivygrove Holding
Ivygrove Holdings snapped up 225,543,406 Choppies shares as an underwriter during a recent rights issue to recapitalise the business from negative equity.
A rights issue is an offer to existing shareholders to purchase additional shares at discounted prices.
#7. Management,
Ram Ottapathu - CEO
A qualified Chartered Accountant who transformed and grew Choppies in Botswana, Zimbabwe, Zambia and Nambia market.
He has +34 years’ experience working in finance and operations in various sectors.
#8. Outlook: A Game-Changing Recapitalization!
Choppies recently executed a rights issue, successfully recapitalizing the business and wiping out negative equity. This bold move is set to reignite investor confidence, paving the way for a surge in share price
Acquiring Kamoso Africa will boost revenue streams by integrating its brands into Choppies stores. Get ready for a surge in foot traffic, attracting even more Liquor enthusiasts!
Each week will be on a Date with a company listed on the @TheOfficialBSE.
The purpose of this thread is to have a minimum appreciation of listed firms.
Disclaimer: Do not misconstrue this thread as investment advise DATE companies before you buy its shares
Martin Mataga
@MartinMataga
Democratizing investing knowledge by sharing simplified stories of people, enterprises and organizations delivering value in the marketplace. Growing with you!