Enterprise Africa November 2021

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

November 2021

www.enterprise-africa.net

‘Be Your Best’ Ethos Fuels Booming Biogen Exclusive interview with Biogen General Manager, Brandon Fairweather

ALSO IN THIS ISSUE:

Sealand Gear / TRSS / Abbeydale / Africrest

WE CAN HELP YOU MANAGE YOUR WASTE At Sealand we've taken on the challenge to transform the gifting industry by upcycling advertising banners that would otherwise be deemed as waste. This material, Polly Twill, lines each Sealand bag, making our product unique and vibrant. We are future proofing our circular economy approach by offering you a partnership to gift with a conscience, divert waste from landfill and empower our team of local machinists who hand make every Sealand bag. Contact us for more information.

Handmade in Cape Town

info@sealandgear.com

www.sealandgear.co.za

EDITOR’S LETTER

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EDITOR Joe Forshaw  joe@enterprise-africa.co.za SENIOR PROJECT MANAGER Sam Hendricks  sam@enterprise-africa.co.za SENIOR PROJECT MANAGER James Davey  jamesd@enterprise-africa.co.za PROJECT MANAGER Chris Wright  chrisw@enterprise-africa.co.za PROJECT MANAGER Ekwa Bikaka  ekwa@enterprise-africa.co.za PROJECT MANAGER Christina Allcock  christina@enterprise-africa.co.za PROJECT MANAGER Eleanor Sarbutt-King  eleanor@enterprise-africa.co.za PROJECT MANAGER Lily Vosper  lily@enterprise-africa.co.za PROJECT MANAGER Leanna Lucas  leanna@enterprise-africa.co.za SENIOR DESIGNER Liam Woodbine  liam@enterprise-africa.co.za FINANCE MANAGER Paige Atkins  Paige@enterprise-africa.co.za CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR

Manelesi Dumasi Timothy Reeder Benjamin Southwold William Denstone

Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Fuel Studios, Kiln House, Pottergate, Norwich NR2 1DX +44 (0) 1603 855 161

As focus turns from pandemic recovery to long-term growth strategy, a key element is clear among all that are serious about future sustainability: environmental impact. This is no longer just something that is used for marketing and brand imagery – strategies that involve environmental consciousness are proving to be both positive for the world and lucrative at the same time.

Masslift Africa, the leading distributor of Mitsubishi Forklift Trucks, is beginning to sell all electric models, switching from diesel to reduce emissions and provide improved performance.

Lufil Packaging, part of Bidvest, is beginning to manufacture card and paper products, moving away from plastic where possible to drive a recycling and reusing revolution.

Ellies Holdings, the leading provider of electrical and TV installations, is rolling out a strategy which will see solar power become part of the mainstream in homes around the country, reducing reliance on South Africa’s coal fired power stations.

Jotun Paints South Africa is driving a new ‘GreenSteps’ programme, promising to reduce emissions and use of hazardous materials while improving energy usage in its manufacturing facility.

Sealand Gear, fashion manufacturer from Cape Town, is perhaps the ultimate example – taking waste material and turning it into useful, lasting products including bags and wallets. Founder Jasper Eales is clear that the environment must be at the heart of every decision the company makes.

Talbot is helping clients evaluate water wastage, providing recycling and reusing solutions to avoid waste and take the pressure off the national systems.

All of these companies are achieving remarkable results while tying real sustainability into operations. It’s time for all to follow suit. Tell us how you are working with and for the environment – we’re online at LinkedIn.

Joe Forshaw

EDITOR

E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher.

Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Media Group Ltd 2021

GET IN TOUCH  +44 (0) 1603 855 161  joe@enterprise-africa.co.za www.enterprise-africa.net

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SEALAND GEAR Doing Great While Doing Good BIOGEN ‘Be Your Best’ Ethos Fuels Booming Biogen PINNACLE New Growth Sectors Take Pinnacle to New Heights ABBEYDALE 40-Year Commitment to Quality Construction Drives Abbeydale AFRICREST PROPERTIES At Africrest, Residential Property is a Way of Life ELPHICK PROOME ARCHITECTURE Collaboration and Innovation Keep EPA Building and Growing JOTUN PAINTS SA Jotun Displays Boldness with Quick SA Recovery PICK N PAY South African Giants Partner in Landmark Distribution Centre MASSLIFT AFRICA Commitment to Service and People Reaps Rewards

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CONTENTS

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ELLIES HOLDINGS Solar Strategy Supports Sustainable Success TALBOT Sustainable Solutions to Significant Water Challenges TRANSNET Driving the Vaccine Rollout While Sustaining SA’s Economy LUFIL PACKAGING Sustainable, Recyclable Packaging Solutions in the Bag TRSS Trust the Best to Secure Your World OUTSURANCE Out-of-this-World Service When You Need It Most AVBOB Incomparable Care and Compassion in Times of Covid and Beyond DENNY MUSHROOMS Marvel at South Africa’s Mushroom Mega-Growers www.enterprise-africa.net / 5

DOING GREAT WHILE DOING GOOD Cape Town’s Sealand Gear manufactures beautiful, strong and functional products, including bags and apparel, creatively designed to compete with the world’s most fashionable brands. But it’s business model – putting the environment first – is the reason many are becoming more and more interested in this South African success story.

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FOCUS ON: SEALAND GEAR

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are doing small things too. If we all make small changes, it does result in one big change. As a business, that is how we approach problem solving,” Founder and Creative Director Jasper Eales tells Enterprise Africa.

A Cape Town-native, surfer, environmentalist and creative product developer, Eales is involved in all aspects of Sealand Gear, and is excited about the future despite a number of challenges. His vision is to further entrench the company as a leading environmentally responsible brand both in South Africa and around the world.

By taking waste material that would normally be buried to create a range of highly attractive, durable and functional products, Sealand Gear is fashionably on-trend from a product and ethos perspective. For Eales, the core of this business is sustainability and the focus is clear: upcycle, recycle and ecocycle.

In Cape Town, at the tip of the continent where the mountains meet sea, and where the warm-water Agulhas current of the Indian Ocean meets the cold water Benguela current of the Atlantic Ocean, surfers and adventures find a home like nowhere else on earth. Hot sun, tropical air, cold water, and lush green land make for the perfect environment.

But that environment is under threat. Like many other areas of the planet, this beautiful region is being battered.

Plastic floods the ocean, the climate is heating, droughts are common, vegetation is freely cleared to make way for urban development, and a huge amount of waste is set to landfill each year. According to the Association for Water and Rural Development and Stats SA, South Africa produces around 59 million tonnes of general waste which heads for landfill. Only 10% of waste is recycled and the country is running out of sites that are suitable for efficient waste disposal.

Alternatives are required. New business models should be implemented. Transformational changes must come into play.

This is where brands like Sealand Gear are revolutionising.

“We are not going to solve major issues alone. We think about the small things that we can do and hope that others

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MEETING DEMAND “As a brand which started making upcycled items from old sails and tents, as we scaled we found challenges finding materials to produce goods. That is natural, and something we face quite regularly. That is why you cannot scale a business making purely upcycled products the same way you can with a regular model. But what is why we have difference material pillars – upcycled, recycled and ecocycled. That is a strategic standpoint for us to allow for scalability within the business,” he explains.

“Upcycled will be what the brand stands for and where we come from. Recycled is where we will scale the business.

We are working to release a fully recycled collection of products and that will be from sustainable sources that we can call on for as much material as we need. Ecocycled is natural fibres with natural smart properties attached to them.

We have chosen to champion hemp as a material and we are using that for our apparel right now. We have started to introduce it into a few bags and it gives an opportunity to build it into our material offering.

“Right now, we are at the tipping point of introducing recycled and ecocycled materials into our bags and that is why we are facing challenges. The volume of production is at times passing the amount of material we can access,” he adds.

This is, in part, due to the pandemic. The inside lining of Sealand Gear bags is made from upcycled advertising banners, usually donated from retail stores or exhibition spaces, including the Cape Town International Convention Centre.

“Pre Covid, they were hosting massive conventions every week and oversupplying us with this material. For the past 18-months, there has been no conventions and that supply has dried up and we have had to source new relationships in that space. That is the nature of an upcycled business model, building relationships is vital.”

Sealand Gear can become what is effectively a waste management solution for companies looking to ethically

FOCUS ON: SEALAND GEAR

dispose of poly-twill advertising banners. Demand for product has been intense and keeping material flowing is a challenge.

“Many retail and hospitality businesses rotate their advertising banners every six weeks and they are thrown away or head for landfill. We position ourselves as an alternative, they can provide this material to us and we use it to create new value and create new jobs. We elevate it further, especially with corporate gifting, where bigger companies donate their waste to us, we create beautiful products which they buy back from us, and they gift these products which then come with an amazing, responsible story,” Eales enthuses.

Success of the Sealand brand has been recognised and through 2019 the company picked up a swathe of awards including the Maker-to-Maker award at the Design Foundation Awards and the Sustainable Accessory Award at the Twyg Sustainable Fashion Awards (a South African fashion brand that is encouraging a modern eco-conscious and forward-thinking lifestyle).

WE ARE TRYING TO GROW OUR BUSINESS, BUT THE MOST IMPORTANT THING IS ABOUT STAYING AUTHENTIC TO OUR BRAND AND NOT SELL OUT

CHANGE-MAKING The company, founded in 2015, has enjoyed rapid growth and its popularity is has boomed thanks for its changemaking credentials. The DHL Stormers recently carried Sealand-made bags through a tour of Europe, participants in FNB’s Wines2Whales MTB series carried Sealand roll-top backpacks, staff of crypto investment business Luno now carry Sealand bags on their commute, customers of Reebok in SA received Sealand Tote bags as part of their orders as the two companies teamed to promote the Reebok [REE] cycled Future Legacy Pack.

Partnerships and collaboration are cornerstones of the Sealand strategy and Eales is eager to explore further opportunities with different groups of clients.

“When Covid hit, we lost revenue from international tourists. We acted optimistically by looking at the corporate sector in South Africa, who continued to spend, and servicing those customers to make up for lost revenue,” he remembers.

“We are working with a number of corporate partners including Luno, SnapScan, Yoco, and other financial institutions who are innovating in their own space and looking at marketing in a unique way. We have learnt that you have to balance the small bespoke fun projects with bigger paying larger projects, as long as they tick the right boxes. You must balance portfolio projects, revenue drivers, and a combination of both. Always, projects must ring true to our brand so that we continue to be sustainable.”

Co-founder - Jasper Eales

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FOCUS ON: SEALAND GEAR

In a refreshing commitment to principles, Eales is resolute in his loyalty to sustainability. So many claim devotion to sustainability when the true dedication is to profit as a result of sustainability. Not at Sealand Gear.

“We are trying to grow our business, but the most important thing is about staying authentic to our brand and not sell out. If we had the opportunity to make 100,000 bags but had to compromise on quality or labour – we would not be open to doing that. Because of that, we could maybe grow faster in some areas, but we are not open to compromise.

“We are often approached to white label products but if someone approaches us, we want them to buy into what Sealand stands for – they should be comfortable with our logo on the product. We have turned down projects several times based on that.”

WE POSITION OURSELVES AS AN ALTERNATIVE, THEY CAN PROVIDE THIS MATERIAL TO US AND WE USE IT TO CREATE NEW VALUE AND CREATE NEW JOBS SUSTAINABLE OPTIMISM Internally, the company follows the old adage that its staff is the most important input to its product. Thankfully, this is not just an axiom and the company has, since inception, built a culture of respect. Sealand Gear pays living wages, ensures security, and highlights the skills of its team by etching the name of the maker inside each unique product.

“During Covid, we didn’t retrench anyone,” confirms Eales. “We actually hired more people, opened new stores, and that would have been possible without some of these corporate partnerships that we have taken on.

“We want to see the business grow and grow, but that will not happen overnight because of the nature of our model. However, that growth will be more sustainable and secure in the longer-term.”

Having established itself as a winning SA brand, attention has turned to the global playing field where Eales believes there is absolutely room for Sealand to make its impact. He is busy identifying geographies where the Sealand target market sits, while ensuring the business continues to deliver on its upcycle, recycle, ecocycle mantra.

“Our international wholesale strategy has always been about building credibility in international markets and then decipher which are critical accounts for us in the long-term.

We have been doing pop-up stores and we are looking for

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international retail stores of our own. Oue clear focus has been the UK and the US,” says Eales.

Earlier this year, Sealand Gear products were proudly displayed in a pop-up store inside London’s world-famous Selfridges store. “In the UK, London is the obvious choice.

“In the USA, we are still clearly defining our markets and refining clear locations for focus. Definitely, the west coast feels suitable to the essence that Sealand has grown from, but the east coast speaks more to the sophisticated, refined vision of the brand, with plenty of surfers and adventurers who come from the big cities but want to escape the urban environment. Then there are the ski towns and adventure states which also speak to the brand.

It’s about strategically pinpointing which of those we speak to.”

Understanding these markets, and the costs associated with expansion of this nature, is essential and for Sealand Gear – a completely self-funded business free from external financiers. Ecommerce will be the initial route to market, with physical stores to follow when the brand is entrenched.

“We sell a story, and that story is authentic,” says Eales.

“We are a why-based brand. People are now realising much quicker which stories are authentic and which aren’t.

People buy into our brand because we tell our story in a very open and honest way.”

DO WELL, DO GOOD In the past decade, there has been a realisation that businesses can ‘do well by doing good’. No longer is making ethical, moral, sustainable choices expensive, and at the cost of profit. According to Jan Mischke, Jonathan Woetzel, and Michael Birshan in the Milken

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Institute Review, ‘serving the interests of stakeholders — employees, communities and the broader public - is not necessarily at odds with the imperative of profit’. They assert that, in fact, social responsibility and sustainability are needed to drive viable profit.

This is the view of Sealand Gear, set up on the basis of ‘environment first’ in any decision-making process. The ‘why’ of Sealand Gear surrounds ‘protecting the natural environment and uplifting the community through innovative design and creativity’. Eales cites inspiration from global fashion brand Patagonia in the development of the business model and purpose.

Following a recent relocation from vibey, creative, start-up hub Woodstock to Hout Bay -where Sealand Gear is now occupying an old heritage building – the company is delving into the community to provide benefits wherever possible. The GIVE campaign sees Sealand donate bags, handmade in Cape Town by skilled Sealand machinists, to students from the Hangberg and Imizamo Yethu communities.

“That is a great project at Hout Bay beach in partnership with the Sentinel Ocean Alliance (SOA),” says Eales.

Just two kilometres from the beach, the new Sealand HQ – or Sealand Campus – is in the heart of a vibrant community, packed with talent, but desperate for opportunity.

“It’s an iconic location; an incredibly beautiful fishing village in a valley,” says Eales. “Unfortunately, the area has issues around poverty, drug addiction, poaching and they’re all interconnected. There is also the issue of Imizamo Yethu, an informal settlement, continuing to become overpopulated. At Sealand, People and Planet are our two cultures, and so it is a great area for us to get involved in make a difference.

FOCUS ON: SEALAND GEAR

IF WE ALL MAKE SMALL CHANGES, IT DOES RESULT IN ONE BIG CHANGE. AS A BUSINESS, THAT IS HOW WE APPROACH PROBLEM SOLVING “The building we have moved into is an old heritage building and we see it is an upcycling and old building rather than developing something new. We have trees, vegetable gardens and nature – it is a beautiful culture fit for Sealand and we are already making an impact around us.

“Financials have been tight through a challenging period, but we are just focussed on making small improvements every week. We’ve been here just over a year and we have improved the place so much. As business picks up, we have so much to do on the property and in the community, and we are very excited.”

The Sealand Campus is now home to educational programmes and tours, where tourists and visitors can visit the site, meet the team, learn about the pillars behind the business and see how products are made. “We also have a retail store on site too alongside a café, restaurant and bakery from Deus Ex Machina – it’s probably the coolest café in the region and its next door to us,” smiles Eales.

GLOBAL GOALS As the Sealand brand grows, more material destined for landfill will be saved. More material will be recycled.

More natural and sustainable materials will be used in manufacturing. More jobs will be created in Cape Town.

More money will move into South Africa. More community projects will be supported, and more fantastic products will be sent out – with lifetime guarantees. The way forward is positive, and Sealand’s admirable purpose will be its driver and attraction.

“Creating a strong local brand, understanding our local market and researching international markets was step one, and we are still doing that,” says Eales. “We are researching the USA, we are in London, we’ve always had a good relationship in South Korea, and we are starting to get a good idea of the challenges attached to building an international organisation. The next step is building our clear direct-to-consumer model which we can roll out over an international market space. Ideally, we will maintain all production in South Africa, with our story attached to it.

“Our strategy is multifaceted and we never stop learning,” he adds. “As much as we have a strategy, that strategy can also change. What is very clear in our strategy is to build on our direct-to-consumer model that is omnichannel.”

In a time where a pandemic and economic crisis has ravaged businesses; when costs to the climate are being realised; and when ‘business as usual’ is being challenged, companies like Sealand Gear are mapping a new path to sustainability in both the environment and the boardroom.

“We are very optimistic and, while some people might call us mad, we have employed more people and taken on more rentals. It has been the best opportunity to find skilled employees, and locations for retail and manufacturing,” Eales concludes, highlighting why Sealand is home to some of the widest smiles the African continent has to offer, and how companies now have the choice to do well while doing good.

Visit www.sealandgear.com

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BIOGEN

‘Be Your Best’ Ethos Fuels Booming Biogen PRODUCTION: Joe Forshaw

By bringing something authentic and proven to the market - in a time when fitness, health and wellness are at the forefront of people’s minds – Biogen, a leading South African sports and wellness brand, is resonating with consumers, and experiencing a period of considerable growth. General Manager Brandon Fairweather talks to Enterprise Africa about expanding during these trying times. www.enterprise-africa.net / 15

INDUSTRY FOCUS: MANUFACTURING

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Being healthy is in. Health and wellness is one of the most significant trends on social media right now. According to Healthline, there are now more opportunities to view healthy lifestyle eating plans and workout routines online than ever before.

Businesses in the industry are making use of the go to providers including Instagram, Facebook and YouTube to drive sales. And it is working. Following a dip caused by the pandemic’s lockdowns, South Africa’s gyms are once again buoyant with members returning to work out. And the market for supplements and health products is booming as buyers consider their need to boost immunity and maintain fitness.

But, there remains a problem for the sector. Several factors - including a lack of participation in sport at school level, growing sedentary working

// IT WAS A TOUGH SITUATION AS MULTIPLE INDUSTRIES WERE REALLY STRUGGLING BUT WE WERE GROWING QUITE AGGRESSIVELY // conditions, and a mental health crisis around unachievable fitness targets – are combining with devastating results.

Rising levels of obesity and diabetes, poor diet, and a focus on quick fixes are counterbalancing the hard work being done to achieve positive results.

Knowledge that regular exercise coupled with a healthy diet can fend off negativity is not newfound. But clarity that health is not just about airbrushed abs and biceps is something which needs to be promoted.

At Biogen, one of South Africa’s leading sports and wellness brands, the message is crystal clear – Be Your Best; and health should be first and foremost on everyone’s list of priorities.

“We believe that whatever we put to the market must be something that genuinely benefits consumers either in their health or performance, preferably both. Our whole mantra is around being the best version of yourself. You don’t have to be an Olympic sprinter, and we’re not saying that if you use our product you will become that – it’s more about credibility, authenticity and the creation of products that are good for you,” explains General Manager, Brandon Fairweather.

“For many people, a fast time around a track or a six pack is not at the top of their priorities. Whilst we do have products that support those goals, most want to be healthy and work well so they can provide for their families – these real issues in the world are what is important to us.”

Currently, Biogen offers a range of products from vitamins, minerals and herbals through to protein powders, endurance and performance ranges, weight management solutions and much more. Its range is scientifically produced in South Africa and marketed mainly through Dis-Chem at the chain’s more than 200 stores.

STRONG HISTORY Established as a house-brand for DisChem in 2004, Biogen’s growth has been impressive. As fitness, wellness and the healthy lifestyle have become fashionable, Biogen products have flown off the shelves.

“No one involved ever anticipated it ever getting so big,” smiles Fairweather, who has been with the brand for 13 years. “Over time, we’ve always tried to navigate being an exclusive brand but also building the appeal and reputation of being a big national brand. We have grown immensely and exclusively with Dis-Chem and much is owed to the work they have done, and the powerful

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Biotherapeutics is a third-party manufacturing pharmacy that is led by microbiological innovation and dedication. Biotherapeutics produces superior-quality products for the pharmaceutical and nutraceutical industry. Biotherapeutics also renders services for turn-key products, quality assurance, probiotic stability and shelf-life studies.

Manufacturing facilities and all protocols are in accordance with cGMP standards.

Biotherapeutics offers a wide range of: Probiotics • Prebiotics • Minerals • Vitamins

Dosage forms include: Oral drops • Topical Sprays • Capsules Liquid-filled Capsules • Tablets • Blister Packs • Powders Dr Charles H Horn Chief Executive Officer charles@bio-t.co.za

Fiona Rassool Managing Director fiona@bio-t.co.za

Nazz R Sanker Chief Operating Officer nazz@bio-t.co.za

87 Regency Drive, Route 21 Corporate Park, Irene, 0062 | www.biotherapeutics.biz

INDUSTRY FOCUS: MANUFACTURING

foundation they have set. A lot of people don’t see this purely as a Dis-Chem house brand – they see it as a premium sports and wellness brand that happens to be exclusively available at Dis-Chem, and we strategically look to drive feet back into their retail space as well.

“It’s interesting to see that something which was designed to put another option on the shelf with decent margins has become so popular and sought after by a lot of consumers. It’s now one of the bigger, if not the biggest, vitamin brands in Dis-Chem.”

Today, 80% of the business is health products (vitamins and nutraceuticals) with the balance made up of sports and nutrition supplements.

This is where Biogen plans to call on its

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strong history to drive future growth. By investing in new products for the health market, while all the time searching for new ways to connect with consumers, this is a business with long-term sustainability in mind.

“We are seeing a lot of growth and development across our range and there are subsets in food with healthier items and alternatives emerging, even in the supplement category. We are very proud to focus on products that support your health and performance – at times albeit a slightly softer message - and not just the ‘get as big and fast as you can’ approach; it’s just about being healthy. We believe that message will be even more prevalent going forward,” explains Fairweather.

BIOGEN

ROUTE TO MARKET As an exclusive Dis-Chem brand, the opportunity for growth of Biogen may have appeared limited, yet this is and was one of its key recipes for success, particularly in more recent years.

Dis-Chem itself has been realising fantastic growth since listing on the JSE in 2016. Biogen has grown alongside the powerhouse pharmacy which is assisting with the roll out of Covid-19 vaccines around the country. Now, Fairweather is looking to capitalize on even more new opportunities to reach the health-conscious consumer through some of the company’s latest and ongoing partnerships.

“We continue to grow comfortably as Dis-Chem grows because as their

footprint increases, our distribution increases. That has been a sound strategy, and we have certainly coattailed from that growth,” he says.

“We have always intended to create something that has national appeal, and that is exciting for consumers. Whilst we are exclusive to Dis-Chem Pharmacies, we do have some additional retail partnerships where an obvious brand synergy exists, such as our distribution within the MoreCorp Group (owners of sports retailers Cycle Lab and The Pro Shop, amongst others). More recently we also launched our first ever pop-up store in the Decathlon Sports Hub in Bryanston, and have since added over 80 independent forecourts as well, but any and all new distribution avenues are still

driven via the Dis-Chem group.”

Opening a pop-up store in Johannesburg in 2016, Decathlon has long been keen on South Africa and today boasts five stores. Cycle Lab is recognised as the country’s leading specialist cycling retailer with five megastores and a thriving online presence.

“Over and above these sports retail connections, our own Biogen online store has also seen tremendous growth, some of which can obviously be attributed to the numerous lockdowns, but also the general increased number of online consumers.

“We are now in 200 Dis-Chem stores, in all Cycle Lab stores, and a few other independent stores apart from

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INDUSTRY FOCUS: MANUFACTURING

Decathlon, and have a passionate team who drive growth in the brand.

More recently, we have built a new relationship with Decathlon, again due to brand fit as an independent sporting goods store,” details Fairweather. “We saw a nice fit because of their culture.

Decathlon is all about bringing sport to the masses and getting people off the couch - there is brand value alignment.

There are five Decathlon stores in South Africa and we are slowly looking to expand into more of them. They are all about ensuring people are healthier and that ties in with our ethos, and that is similar with how we tie in all of our relationships, be it Nedbank Running Club, Sharks Rugby, Knights Cricket, etc – when we talk about our ethos in sport and our transparency in branding, people resonate with it.”

Globally, Biogen is yet to crack new markets in a major way like sports nutrition giant and market leader USN. But Fairweather believes there is still major potential within a market set to reach US$34.5 billion by 2028.

“We spent some time exploring some opportunities in the UK but this is a very saturated and complex market. This being said, we have had orders go out across Africa, to Mauritius and Mozambique, as well as Namibia and Botswana (where DisChem have stores). Our surrounding nations continue to ask for Biogen and we have regular requests from

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// WE ARE TRYING TO BE MORE APPEALING TO A MASS AUDIENCE AND NOT JUST A NICHE FITNESS COMMUNITY // Kenya and Nigeria who ask how they can get the product, as well as other countries including: Dubai, India, Poland, France, New Zealand and Australia. That speaks volumes about what the team has created,” he says “But we would need to find the right partners and fit to ever pursue these more seriously, and for now the focus remains on the broader Dis-Chem group and our strategic alignment with their growth and future plans.”

The Biogen range is powerful and precise, developed by scientific and medical teams from within Dis-Chem and externally. Whether for gaining muscle, improving race times, shedding weight, or just maintaining a healthy diet, Biogen has a product that is welldesigned and easily available.

“We genuinely drive a very authentic message about integrity and we have a team that is passionate about people being healthier. We have staff who are more into body building, we have others who are into cycling or running, but whichever ambassadors we attract and the people we work with, there is a contagious ethos that pushes the health concept, and shifting the

traditional message of simply being bigger, faster, more shredded, or muscular. It doesn’t mean we don’t have products for that, but we try and communicate a longer-term message about looking after your health, exercising and eating a balanced diet – that is where the market is going and people don’t want to be sold to with short-term messages, excessive product claims and over promises,” says Fairweather.

A recent product development meeting saw management discuss the creation of a new range of food products that are not strictly heath products, but are healthier choices than what is currently available on the shelves. “For example, bars with half the amount of sugar, or bars with more protein or more electrolytes to give you a benefit. We are starting to think more about what products we can put out there to help people be healthier,” confirms Fairweather.

This mantra is well-received by consumers, who Biogen understand very well and who are quickly realising what is genuine and beneficial in a market full of promotion that can be misleading and create false ambition.

“Our day-to-day decisions about what ingredients we use, what is safe, what is healthy – those are the decisions that materialise. If they like it, if it tastes good, if it’s healthy they will come back. You don’t need a hectic marketing message to beg them to return to your product. It’s about authenticity and about pushing Biogen as a sports and wellness brand as opposed to a sport supplement brand. We are also focussing on plantbased products as there is a trend in the market around diet to opt for plant-based,” details Fairweather.

quality nutritional supplements & skincare

A Leading Manufacturer Peppina has been around since the 1960s and is actively involved in innovation, development, manufacturing, sales and marketing of brands.

We consider ourselves experts in the nutraceutical market and in the past decade we have vastly improved our manufacturing capabilities supplying over 300 OTC products to a select few customers.

The products we manufacture range from oral supplements such as tablets, capsules and tonics to skincare products including creams, gels, lotions and speciality soap bars.

Our highly qualified team strive at all times to provide our customers with exceptional quality and service.

For more information, contact Peppina at info@peppina.co.za or call us on +27(0) 11 314 0445

KEY SUPPLY PARTNER OF

Peppina is proud to be an integral part of the growth of Biogen. We, at Peppina, would like to congratulate Biogen on their continued success in the market and look forward to a fruitful future together.

INDUSTRY FOCUS: MANUFACTURING

T3 PLASTIC PACKAGING - PROUD SUPPLIERS TO THE BIOGEN BRAND

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COVID MANAGEMENT Being distributed through Dis-Chem gave Biogen an advantage during the pandemic. While others, sold through online stores and non-essential retailers, were struck down with lockdowns and forced closures, Biogen managed to sell throughout at affordable prices with spending under pressure both in the brick-and-mortar environment, as well as via Dis-Chem and Biogen’s online stores and distribution channels. With a focus on immunity boosting, the company’s vitamin range received a major boost, further demonstrating the effectiveness of the products on offer.

“If there was a silver lining to the difficult and horrible situation that we find ourselves in dealing with Covid, it was that people are more aware of their own health and never before have people been aware of their own mortality as it stares us in the face daily, and that is sad and devastating,” laments Fairweather.

“Commercially speaking, the sporting category in first few months of last year took a bit of a dip but within three to four months we were back up to where we needed to be as a category in Dis-Chem and as Biogen. There was phenomenal growth in vitamins and nutraceuticals with more information going out about ways to improve immunity. There was an overall general awareness from people who perhaps had not prioritised health at this level previously.

“It was a tough situation as multiple industries were really struggling but we were growing quite aggressively.

We discussed as a team that the more businesses that could do well in South Africa, the better. As more people do better, we can support more businesses, as well as the families and networks those also affect,” he adds.

With exhibitions and fitness conferences halted, another avenue to market dried up for Biogen. But the team was quick to respond, throwing its muscle behind its online presence, updating its web shop capabilities to ensure an efficient transactional experience. “That has carried us and we have seen crazy

BIOGEN

growth just on the vitamins side where we have to work hard to ensure stock availability,” admits Fairweather.

A nice problem to have, the Biogen team had to adjust and manoeuvre to ensure the flow of product onto shelves and into the hands of consumers. It was an extraordinary period where competition across the supply chain increased dramatically.

“It’s a different type of fight, managing the cost and supply and demand of raw materials globally,” highlights Fairweather. “Even on the sports nutrition side, we are seeing very high cost increases on protein powders, creatine, glutamine, and various amino acids. That is industry-wide and will ultimately, unfortunately be passed on to the consumer. The challenges are different right now, but we can’t complain as the business has grown healthily in the past two years.”

FUTURE FLEX There is incredible opportunity in the fitness, sports and wellness markets as more people look to mitigate against health issues before they arise. Biogen’s messaging supports a sustainable,

long-term, wholesome approach to the achievement of goals, and this will help the brand grow in Dis-Chem and beyond.

“We are trying to be more appealing to a mass audience and not just the niche sporting disciplines and communities, which is still one part of the market even though it has grown,” says Fairweather.

“Dis-Chem is in a very good position and they are still run like a family business with very strong leadership. We want to walk with them and grow as they grow. They have an aggressive expansion plan and, even in the past five years, they are opening stores all over the country at an incredible rate. We will continue to ride that wave but will also continue to pursue our discussions with retailers in the UK, New Zealand.

“We are growing nicely, and that is also bolstered by Dis-Chem’s expansion and their success on the JSE. But we do see the brand as one which ultimately also has opportunities overseas. Our priority is to grow with Dis-Chem.

But personally, I think it would say a lot about our brand and what South African companies are able to do if we could expand internationally and be sustainable in other markets.”

Biogen is a brand dedicated to encouraging people into sport, and promoting healthy living. It has survived and thrived through the pandemic. It has grown alongside Dis-Chem and is now exploring additional expansion strategies. Its messaging is honest and authentic. ‘Be Your Best’ is resonating with consumers. For Fairweather, this South African success story still has a long way to go, and he is ambitious about opportunities at its feet.

“We are not just selling something to make money. Our products add value, support health, build the immune system, and we must continue to promote that. There is heightened demand in the category and we are very careful to not make ridiculous claims.

“We are expecting the brand to drive in excess of R450 million through the tills this fiscal year, and as a sizeable brand with decent market share across most categories in health, we are pleased what the brand and our teams have achieved,” he concludes.

WWW.BIOGEN.CO.ZA

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PINNACLE

New Growth Sectors Take

Pinnacle to New Heights PRODUCTION: David Napier

Taking ICT to the masses through various routes to market, Pinnacle continues to be trusted as a market leader, driving opportunities and assisting in economic and digital transformation. This is a business always looking to grow, and CEO Tim Humphreys-Davies tells Enterprise Africa about overcoming the challenges of 2020 and 2021.

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INDUSTRY FOCUS: IT

//

As a leading distributor of technology, hardware and software in southern Africa, Pinnacle is key in Africa’s digitisation and the movement around the fourth industrial revolution. It has also been pivotal in the movement to remote working and the switch back to the office, and everything between including cloud, security, digital communication and more.

A champion of brands including Dell, Lenovo, ASUS, HP, Huawei, LG, Microsoft, and many more, Pinnacle is home to technology giants that are breaking the boundaries of possibility.

Working across multiple channels, partnering with numerous resellers, and driving product into a thriving commercial market, Pinnacle has positioned itself strongly, becoming a technology partner of choice when reliability has been vital for consumers.

With a quarter century history and the backing of JSE-listed Alviva Holdings, Pinnacle is diversifying to meet demands of the market.

Thankfully, forward thinking and a nimble approach to the market have driven the company to its strongest year – quite a coup for a business during the challenging economic conditions prevalent through 2020 and 2021.

“We had a record year last year,” says CEO Tim Humphreys-Davies.

“Our fiscal year runs July to June and from July 2020 to June 2021, we grew revenue at 17% and profitability by 248%. There were some large enterprise deals, but we definitely saw the work from home scenario crystalise into a 30% growth in revenue in the client space – Dell, HP, Lenovo and ASUS. We’ve started to see an increase in enterprise spend which is encouraging. Noticeably, all the peripherals such as webcams saw great growth but we are starting to see that decline and focus switch to storage while people operate in the cloud. We are also starting to see some nice large enterprise, datacentretype deals materialise and that is the backlog of Covid.”

CEO - Tim Humphreys-Davies

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// WE HAVE CREATED AND END-TOEND ECOMMERCE SOLUTION FOR OUR RESELLERS TO GIVE THEM MORE CHOICE AND GREATER TRADING HOURS // Alviva financials for the period ending 31 June 2021 were impressive considering the circumstances, and Pinnacle was highlighted as a standout performer in the group. “Their performance has been the standout feature of the ICT Distribution segment. In addition, Pinnacle has successfully implemented a new ERP system, allowing it to take advantage of enhanced digital efficiencies and reporting,” said Chairperson Ashley Tugendhaft and CEO Pierre Spies in results commentary.

Humphreys-Davies was delighted with performance and expects ongoing success because of the shifting marketplace and constantly accelerating need for digitisation.

“We have been fortunate,” he says.

“There have been no retrenchments in the group and none within Pinnacle.

Right now, we have a demand problem more than anything else. We have adapted by embarking on digital transformation, which was difficult with everyone working from home, and we migrated to a new ERP Sage X3 which has enabled us to build a Magento platform because we felt that was very important. We have created and end-to-end eCommerce solution for our resellers to give them flexibility and trading hours beyond 08:00 – 17:00.

We have invested in the company but demand continues to exceed supply.”

Currently, the concern across the ICT manufacturing and distribution industry is the infamous problem of

PINNACLE

Hikvision is evolving as an IoT solution provider with video as its core competency. Focusing on IoT, big data, and AI solutions, the company provides a complete technology architecture, from perception layer, through data fusion, and on to application. Hikvision’s capabilities and performance in the security and smart video industries have meant that it was recognized as the No. 1 video security products provider worldwide by IHS Markit/Omdia for the 9th consecutive year and No. 1 in a&s Magazine’s “Security 50” from 2016 to 2020.

+27 (0)10 110 8228 • support.sa@hikvision.com • www.hikvision.com

availability of semiconductors, vital for effective operation of so many technology products. US chip makers are laden with demand and the few other manufacturers around the world are facing a backlog thanks to US

// THE FABRICATION ISSUES HAVE BEEN A MAJOR CONSTRAINT. WE WERE LUCKY IN THE FACT THAT WE TOOK RISKS. WE HAVE AN OFFICE IN TAIWAN AND WE SAW THIS EARLIER //

refusal to make chips for Huawei. This, combined with major new demand for 5G products and remote working solutions as a result of Covid, and you have a perfect storm.

“That problem started two years ago,” says Humphreys-Davies. “The fabrication issues have been a major constraint. We were lucky enough in the fact that we took risks and because we have an office in Taiwan, we were able to anticipate this shortage.

We took inventory positions and capitalised on that in revenue. It is a very difficult environment – you get an order for 1000 Dell Notebooks but you never know when it will arrive. The customer gets frustrated.”

Other macro factors did contribute to challenges for Pinnacle, but the size and reputation of the business allowed it to come through where others struggled.

“Operationally, we were affected massively with the supply constraints.

Supply chain issues continue to be problematic in South Africa with a lack of containers, port issues, congestion and general availability. Lead times are just crazy – six to nine months sometimes,” says Humphreys-Davies.

PERFECTING PARTNERSHIPS As technology advances and demands change, especially around a hybrid working model, Pinnacle has moved to reaffirm its dominance, building partnerships with exciting brands to the delight of its resellers.

“We have taken on WD and SanDisk recently,” says Humphreys-Davies.

“We have started a new cyber security division with Guardicore and a number of others in that space as there is big spend in that area.”

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INDUSTRY FOCUS: IT

The WD partnership was welcomed on both sides with Ghassan Azzi, Africa Sales Director at Western Digital commenting: “As South Africa’s leading ICT distributor, Pinnacle proves to be a very strategic ally for us. Not only do they boast a strong footprint and presence across Southern Africa, but the company’s core focus on delivering exceptional products strongly aligns with our purpose of providing consumers and corporations within South Africa with all the storage solutions they need to thrive in the age of data.”

Digital distribution is a newer development for the business and ties into the new ERP system and Pinnacle’s eCommerce drive.

“We have built an Electronic Software Distribution (ESD) model on the back of our eCommerce portal as

// WE’VE STARTED TO SEE A RETURN TO ENTERPRISE SPEND WHICH IS ENCOURAGING //

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we are starting to see migration towards ESD which is nice for us in the Microsoft space. We’ve seen a bit of a migration towards computer on the cloud with Edge and others but not massively.

People are still nervous about moving their workload to the cloud but we have seen some hybrid transitions, particularly around back up,” details Humphreys-Davies.

A particularly strong area of growth has been in what Pinnacle labels life security. This exciting and innovative sector is booming alongside IoT, and as being fuelled by Covid. Connectivity improvements are also helping this sector thrive.

“We’ve seen a big demand in life safety spend with cameras because of the security situation in South Africa,” admits Humphreys-Davies. “People are very aware of security, and that life safety space includes facial recognition, x-ray scanning, temperature checking etc. We are seeing a slow and gradual return to office working in South Africa with some of the government businesses still working from home, but we do expect to see a longer-term switch back to majority office hours.”

Datanet, Pinnacle’s infrastructure

division, is currently seeing a return of business following a slowdown. As an essential component of IT build, and one which drives revenue in other parts of the company, this expert provider is hoping to ride the wave of positivity around South Africa’s fibre rollout.

“We are seeing the big data centres like Teraco do well – they are building lots of infrastructure,” says HumphreysDavies. “Interestingly, we have seen a return, post Covid, to the big FNOs and metro fibre link guys investing money.

There is a lot of money in South Africa floating around acquisitions of FNOs. Fibre to the home and fibre connectivity took a bit of a hiatus during Covid, but we are excited to see Datanet getting back on track. Historically, that was always a strong part of our business, selling copper enclosures, but it went completely dead during Covid. It’s only a small part of our business, between 7-10%, so it is frustrating, but we have seen a return.”

In April 2021, Datanet announced a partnership with CommScope resulting in Datanet distributing RUKUS networking products. CommScope’s RUCKUS Wi-Fi can improve the way services are offered by delivering faster and clearer

PINNACLE

communications between departments and people located in different physical spaces – especially in healthcare, higher education, and hospitality.

HISTORIC POWERHOUSE Through its life, Pinnacle has become, in some cases, an extension of its customer’s businesses, operating so closely alongside in an inexorable partnership. This handin-hand approach has seen the business grow at a sustained rate, achieving a healthy position in the market that will not be risked.

“We have 600 staff and operate across all of southern Africa,” highlights Humphreys-Davies. “We have a cross border go to market operation where we sell into Botswana, Zambia, Mozambique, Lesotho, Swaziland and Malawi. We dispatch into those countries and then use on-premise service providers. We also have a physical branch in Windhoek.”

Pressed on plans to capture further market share across Africa, HumphreysDavies is clear that southern and South Africa remain the priority, with the rest of the continent well-covered by the Alviva Group.

“Our sister-competitor Axiz has a much stronger presence in Africa through their acquisition of Tricon International. Pinnacle doesn’t have plans to expand further into Africa at this stage as we are balancing the risk profile as a group.”

Currently, Pinnacle works alongside some of the largest resellers in South Africa including Datacentrix, DG Stores, Intdev and Centravoice. Pinnacle established their in-house brand Proline in 1994 which currently includes a full range of tablets, notebooks, mini PC’s, towers and UPS’s. The Proline range is designed for the harsh temperatures and dusty conditions of Africa, and the products are assembled locally. Pinnacle is also a AWSP for Lenovo, ASUS and Hikvision, and boasts HP, Dell, Lenovo, and ASUS as anchor brands. Distribution remains 40% of the Pinnacle business.

“On the enterprise side, through

Pinnacle Enterprise Solutions (Pinnes), we are a distributor for Nutanix, Supermicro, Huawei, Commvault, and we have a specialised sales and pre-sales team focusing on this division specifically,” says Humphreys-Davies, adding that this important division now contributes around 30% of Pinnacle’s turnover.

“We provide a lot of pre- and postsales support,” he continues. “We supply the complete package to resellers and equip 6500 resellers on an annual basis,” and we have 15 silos going to market.

We are strong in traditional brick and mortar retail as well as the online space with companies like Takealot, and we have a large commercial offering too.”

In October 2019, President Ramaphosa stated that South Africa would become an economy that uses technological innovation to revolutionise manufacturing and industrial processes, and energy provision and distribution. While perhaps this dream is still some way off at macro level, there is no questions that digitisation forced by the pandemic has been massively aided by a buoyant ICT industry, and players like Pinnacle.

With technological advancement happening fast, the private sector has a major role to play in Africa’s unique digitisation. Thankfully, Pinnacle is at the forefront and has managed to continue delivering success without major interruption. “We have stuck

to all the Covid protocols and we now have around 75-80% of our staff back at the office as we are in a very dynamic environment which is reliant on collaboration and that is simply more difficult when working from home,” says Humphreys-Davies.

“A lot of companies are going to run a hybrid model which is good for IT because it translates into spend at home and into the office.”

In the future, it is clear that an expansive footprint and a tested methos to market will be essential for individual, business and economic advancement. This is where Pinnacle will continue to serve.

“We are the authorised and exclusive distributor for many leading vendors, allowing us to be the first to market the latest technology and ideas available. We are built on the foundation of entrepreneurial spirit ‘Delivering the exceptional’ spans across everything we do. We believe that it is our technical expertise, drive and determination that sets us apart and ensures that every delivery takes place exceptionally making Pinnacle southern Africa’s ICT distributor of choice,” concludes Humphreys-Davies.

WWW.PINNACLE.CO.ZA

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ABBEYDALE

40-Year Commitment to Quality Construction Drives Abbeydale PRODUCTION: Karl Pietersen

Specialists in the construction of industrial warehousing, flooring and associated contracting, Abbeydale has a history of excellence and a project portfolio which is the envy of the industry. Director, Craig Gray tells Enterprise Africa that now is an exciting time for Abbeydale as the business completes innovative, flagship projects.

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© Abbeydale Construction - Amrod

INDUSTRY FOCUS: CONSTRUCTION

//

There is vibrancy in South Africa’s construction industry once again. With lockdowns ended, and a vaccination programme running successfully throughout the country, builders are back on site and working hard to create.

After the negativity around the industry that emerged following the 2010 FIFA World Cup, and the economic struggles of 2017, the pandemic heaped further misery onto an industry which had been wobbling for more than a decade.

Some have called it a ‘natural right-sizing’, others have looked at government for solutions, but those active in construction have been digging deep to secure each and every opportunity that crops up.

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Celebrating its 40th Anniversary as a participant in the construction industry in South Africa, Abbeydale is not an ‘expand at all costs business’.

Since the company’s establishment, its staff and management have relied on quality as the cornerstone in its strategic growth. Ramping up activity since inception, this is a business that has developed using its projects as testimonials. Historically working across both the commercial and residential sectors, Abbeydale’s modern-day focus is in the industrial sector, specifically large distribution warehousing.

According to leading market insight business, researchandmarkets.com, South Africa’s construction industry will achieve growth of 6.2% in real terms by the end of the 2021 thanks to a boom

in demand after the lockdown periods and a promise of major infrastructure investment from government.

Abbeydale is a construction firm with a turnkey offering, that takes projects from concept to completion, while always delivering excellence.

This is one of many reasons that Abbeydale is recognised as an industry leader. Director Craig Gray is cautiously optimistic about the future, and humble to have been able to retain all staff during the lockdown whilst completing significant projects in what has been a trying time.

“We are fortunate to have never been through a retrenchment process in our history and were able to avoid retrenchment over the past 18-months. We have organically

ABBEYDALE

grown from a small construction business, relying on ingrained family culture within our ranks. When we looked at the initial lockdown, and the consequences of the ensuing harsh lockdown, we never considered releasing staff.

“It has been a difficult time for our salary and wage staff, living in a world where the consequences of Covid-19 are felt daily,” he adds. “We historically have a large annual function at the end of every year which would be attended by all staff which was an opportunity for us to engage and reflect. With Covid, that could not happen, but are hopeful that, with the vaccination programme, we will once again have that opportunity to further build our relationships with our staff.”

STRONG PROJECT PORTFOLIO Abbeydale’s portfolio is like a walkthrough of some of the country’s most exciting and innovative developments. Spanning the country, and including work with the biggest names, the company has proven its mettle at the very top end of the market.

Undertaking major projects for developers and tenants alike, the list includes household names such as Makro, BMW, Amrod, Atlas Copco, Seaborne, GRW, Teraco and more are complemented by recently completed projects for Pepkor, Mercedes-Benz SA, ALPLA and VEGA Instruments SA. In Johannesburg, a traditional stronghold for Abbeydale, the company has been busy at the Lanseria Corporate Estate, adjacent to Lanseria International

Airport and base of a number of corporate headquarters, building a new home for the SSA and operations for the ALPLA Group, a global packaging solutions manufacturer and recycling specialist that services some of the country’s big FMCG organisations.

“It is a complex situation with many players involved,” says Gray.

“The building is being built on behalf of Griffin Holdings in partnership with Lanseria Trust One who are the Developers of Lanseria Corporate Estate on 90Ha of prime industrial property in the heart of Lanseria and the muchpublicised Lanseria Smart City Concept.”

The planning goes back a number of years and, originally, the ALPLA Group was in talks to put up a small facility of around 3000 m2.

© Abbeydale Construction - BMW

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INDUSTRY FOCUS: CONSTRUCTION

© Abbeydale Construction - Pepkor

Following a period of acquisitions, where the ALPLA Group brought together a number of operations in SA this made a consolidation in a bigger site including warehouse facilities necessary “We are now looking at an approximately 18,000 m2 warehouse component with an approximately 15,000 m2 production facility component attached to it, and then 2500 m2 of office and further 3500 m2 of mezzanine,” says Gray.

// WE HAVE ORGANICALLY GROWN FROM A SMALL CONSTRUCTION BUSINESS, RELYING ON INGRAINED FAMILY CULTURE WITHIN OUR RANKS // 34 / www.enterprise-africa.net

However, this created new challenges, specifically around power supply. the ALPLA Group’s operations are dependent on secure, uninterrupted energy and this forms part of the reason for moving out of one of its former homes in Harrismith.

Perhaps beyond the remit of most construction firms, Abbeydale was happy to advise where possible, already being contracted as a turnkey provider across multiple disciplines.

“One of the mandates to the developers was that the ALPLA Group be provided a direct Eskom connection.

Lanseria Corporate Estate is one of the few remaining nodes in Johannesburg where you can secure a direct Eskom connection,” says Gray.

Demonstrating the experience of its stakeholders, including suppliers and subcontractors, Abbeydale was able to offer a product that included the entire scope of work on this site, from bulk earthworks through to building contracting, electrical and mechanical installations, and finishing.

“We were involved in all three aspects of construction. Often there is a clear split between bulk earthworks contractors, building contractors, and M&E (Mechanical and Electrical) contractors. The problem with that model is the risk to the employer and end user,” says Gray.

“If something goes wrong with the bulk earthworks’ component, and the building settles, how can you manage the risk associated with that defect?

In conjunction with the developer, we came to an arrangement where Abbeydale could be the principal contractor for the bulk earthworks.

Through that, we accelerated the building component as we had access to the platform a lot earlier.

“The tenant, the ALPLA Group, then contracted with us directly in order to undertake the mechanical and electrical scope that related to an extensive fit out. On their behalf, we are managing the compressed air, LP gas, electrical, chilled water etc. We are involved with the entire building end-to-end. The

ABBEYDALE

ALPLA Group will take their equipment, plug it in at the new factory and start production almost immediately.”

A tight timescale saw Abbeydale tasked with completing this major operation in just 16 months. The company employed technology to expedite the process and, for teams on the ground, this has been welcomed.

“Interestingly, this project was put together almost entirely using Building Information Modelling (BIM). Every team member had access to an online portal, and all the QC lists, drawings, models and designs were done entirely through the cloud. Our site managers were able to work off tablets rather than using paper-based notes. For us, in terms of Southern Africa, it is exciting that we are looking at a future that may encompass an entirely paperless operation. It really was a pleasure to work this way.

“As a product, this building is exceptional – the quality is superb and our team has delivered something which we are extremely proud of,” explains Gray.

Currently, the company is busy at a new site for VEGA Instruments SA in Johannesburg where again, an international organisation looked for a reputable contractor to deliver amazing infrastructure.

“Often, we perceive that employers who are based in foreign countries have concerns about the capacity for the South African construction industry to deliver in terms of their expectations. When these representatives come to South Africa and see what is actually happening on-site, they often talk about how the facilities here are some of the best they have seen, globally,” Gray smiles.

// AS A PRODUCT, THIS BUILDING IS EXCEPTIONAL – THE QUALITY IS SUPERB AND OUR TEAM HAS DELIVERED SOMETHING WHICH WE ARE EXTREMELY PROUD OF // “The contract was awarded to us at the end of April 2021 and construction started in May 2021. The scheduled completion date is the end of March 2022. The new facility really is a beautiful building with a relatively small warehouse component of around 2000

our integrated business support services provide leading-edge staffing solutions Permanent Recruitment • Temporary Recruitment • Temporary Employment Services • Functional Outsourcing • Business Process Outsourcing • Productivity Services and Solutions • Payroll Services • Time and Attendance Systems • Customised Management Information • HR and IR Services • Mega-project Services • Lifestyle and Employee Benefits

www.primeserv.co.za

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INDUSTRY FOCUS: CONSTRUCTION

m2 where instrumentation equipment is received from the German Headquarters and distributed throughout Africa. There is also a magnificent office component of around 5000 m2, which has an attractive curved façade, gabion walling, and basement parking. It’s currently on programme and we are fortunate to be working with an exceptional professional team.”

NATIONAL SUCCESS To ensure adequate market penetration and coverage, as such servicing clients that have national operations, Abbeydale considered its footprint outside of traditional Johannesburg; and has been able to structure itself appropriately across South Africa. While the company, in its infancy, was Johannesburg-based, operations have scaled, and today, the company is comprised of Abbeydale

Building and Civils, Abbeydale Cape, and Abbeydale Projects.

Abbeydale Projects is a Level 1 BBBEE-rated business, in association with Jade Capital, which has completed, and is currently undertaking, major building projects in Gauteng and KwaZulu-Natal.

Abbeydale Building and Civils embarked on an initiative in 2002 which culminated in the formation of what is now Abbeydale Cape. Pierre Rousseau joined the group in 2005 as a Company Director. Rousseau is originally from the Cape, with 10 years of executive experience. Today, Rousseau runs Abbeydale Cape under Abbeydale identity.

Abbeydale Cape has recently completed several significant contracts, such as The Courier Guy, Morgan Cargo and Get Worth. Recent secured work includes a mega-warehouse for Takealot.

// WE PERCEIVE OUR ORGANISATION AS ONE WITH A RELATIVELY FLAT HIERARCHY. WE’RE NOT BIG ON TITLES AND PRESTIGE; WE CONSIDER OURSELVES AS SUPPORTERS FOR THE GUYS ON SITE //

© Abbeydale Construction - Mercedes Benz

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Abbeydale was introduced into the KwaZulu-Natal market when it was awarded the Ackerman’s contract for Pepkor in 2016. This exciting and successful project boasted a warehouse in excess of 85,000 m², which has led to further work in the region.

“In Durban, we are working on a R800 million second-phase project for Pepkor in Hammarsdale, which includes 100,000 m2 under roof and another 52,000 m2 of mezzanine, amongst other projects,” says Gray.

“Our Durban office has recently completed several significant contracts, such as Makro Umhlanga and Kerry Ingredients.”

Considering the sizable operation in Johannesburg, together with the Durban and Cape Town offices, Abbeydale are active in all South Africa’s major metros.

In terms of expansion outside of South Africa, Gray explains that the company has experience working cross-border, completing jobs as far north as the Democratic Republic of Congo. However, following the pandemic, and with its focus on the local market, Abbeydale is not actively seeking contracts across the borders of South Africa.

ABBEYDALE

LOOKING AHEAD As Abbeydale considers its next move, the market may see a business edging closer to a corporate-sized building contractor, undertaking some of the biggest projects for large businesses.

But within, the company remains fundamentally an ethical, professional, and efficient organisation with a family-orientated culture. Many of the senior team members have dedicated their lives and careers to the company, and the younger Directors look to this example as the continued way forward, making this an interesting time for all involved.

“Most of the partners have been with the business for the majority of their careers and that brings a leadership team that has been entrenched in the business for more than two decades. In the past 10 years, a new level of management has been established which is about future sustainability. This new team is learning from the established leaders, taking that knowledge forward, and building on that success.

“I have worked in a corporate environment and, as a young professional in the building industry, we underestimate the importance of mentorship. After joining Abbeydale in 2012 and being provided exposure to the senior individuals in the team, where I can sit three doors down, get up

// A BIG PART OF OUR OFFERING OVER THE PAST FIVE YEARS HAS BEEN DELIVERING THESE TURNKEY CONTRACTS AND WORKING AS PARTNERS OF THE DEVELOPER OR END USER //

© Abbeydale Construction - Sasfin

and walk to see one of them, and ask for advice. In a corporate you simply would not be able to do that. We perceive our organisation as one with a relatively flat hierarchy. We’re not big on titles and prestige; we consider ourselves as supporters for the guys on site – we exist to make their lives easier. That comes with trust and communication,” highlights Gray.

Now with industry leading expertise over the full project lifecycle, Directors involved at every level, and an ethos that dedicates all at Abbeydale to integrity and quality, this is a business that is growing and changing with each project, ensuring comprehensive engagement from the outset.

“South Africa has always constructed using a tender model,” he adds. “The employer will employ the design team who will then tender the building contract with the lowest bidder securing the work. Builders were viewed as simply contractors. In other parts of the world, builders are viewed

as turnkey-contractors who offer far more. A big part of our offering over the past five years has been delivering these turnkey contracts and working as partners of the developer or end user,” says Gray.

As the industry begins to show green shoots and opportunity returns to the market, Abbeydale has positioned itself on a robust base to grow. A young and energetic group is being readied for future decision-making, and a group of seasoned Directors continues to drive the business with a hands-on approach.

Known for quality, turnkey abilities, and on-time and on-budget delivery, Abbeydale is building its reputation at the top of this exciting industry which is set to boom as spending and investment returns to the market and the country.

WWW.ABBEYDALE.CO.ZA

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AFRICREST PROPERTIES

At Africrest, Residential

Property is a Way of Life PRODUCTION: Timothy Reeder

South Africa’s fastest-growing build to rent apartment company, Africrest offers quality, expertly-managed spaces at affordable rentals. Its residential business has rocketed in just five years, making it today an industry leader, firmly backed by strong funding, astute management and an unwavering focus on tenants’ needs. “This is our recipe for growth,” sums up Director Grant Friedman.

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INDUSTRY FOCUS: PROPERTY

The Village Bramley

//

Africrest Properties (Africrest) owns, re-develops and manages (in-house) office, retail and industrial properties, priding itself on the ability to tailor dynamic deals to tenants’ individual needs, over the last few years the company’s focus has been on developing Built to Rent residential estates. “We are always striving for our tenants’ utmost happiness,” outlines the industry leader in the middle-income residential rental class, where it has one of the largest portfolios in South Africa.

The Africrest story began 17 years ago, as a notably entrepreneurial property company with a particular focus on the Johannesburg CBD and Braamfontein. “At the time, this was something of a high-risk area for investments,” says Director Grant Friedman. “The objective from the beginning was to buy, dilapidated, C-grade buildings for next to nothing, refurbish them and put in tenants who wanted to be in the city.

“We found that vacant buildings are always hard to dispose of; however once there is a long-term tenant in situ, the value of the building explodes. These

40 / www.enterprise-africa.net

transactions were made in return for exceptional value, because no-one else wanted to take on the risk associated with them,” he explains. “These buildings were being sold for good profit, and this helped us build a very strong capital base.”

RESIDENTIAL SPECIALIST As these funds were kept in the business, further expansion opened up for Africrest. “Using the power of leverage, and the proceeds from selling buildings, our portfolio kept growing.

Africrest then moved into the northern suburbs of Johannesburg and began buying offices in Morningside and Rosebank. Our buildings had always been very well occupied, and generated good rental income, because we are open-minded and always willing to work with a tenant to come to a deal that suits both parties.

“We are well-known in the industry for being good operators that always delivers.

“But while our portfolio was still growing, the office market in Johannesburg had slowed massively and we were struggling to push the business forward.

“A turning point for the business

// OUR TENANTS ARE EVERYTHING AND WE FOCUS ALL OF OUR DEVELOPMENTS ON WHAT THEY WANT // came when one of our tenants outgrew a small building of ours in Randburg, which we converted into 36 apartments for rental. In one week we had 60 enquiries. Amid what was a sea of negative news in the property industry, this building had filled up almost overnight and started generating solid rental. It was at that moment that we knew where the demand lay, and decided to aggressively follow it.”

Thus began the real acceleration of the Africrest brand, into an innovative leader in converting office buildings into landmark, world class, beautiful apartments as well as developing green-field communities. “We converted the former-Old Mutual building next door to our first conversion, into 162

AFRICREST PROPERTIES

apartments, which again filled up within a few months. We then began to develop management systems for our residential portfolio which in turn gave us a huge amount of data and insight, this allowed us to identify excellent opportunities within the portfolio and for future growth. Three years in and our residential business was dwarfing what we were doing within the office space, which had been our specialism for over a decade.”

After 2018 there was something of an emigration of similar outfits overseas, Friedman explains, leaving Africrest with relatively little by way of true competitors. “We went on a bit of a buying and building spree,” he says, as a result, “purchasing over 100,000 m2 of offices over 10 properties, and converted this into

nearly 2,600 apartments. We realised that our tenants are everything and tried to focus all of our developments on what they want, rather than what we want; this is such an important distinction to how we started out, and it helped us to build a better product, ultimately.”

Taking feedback directly from tenants allowed Africrest to ensure that it was continually designing, building, leasing and managing its estates directly and fully for the renters. These answer the lifestyle needs of the modern South African by focusing on the five fundamentals of security, value for money, service, facilities and location. “As we do not sell our apartments, we only build using the best quality materials and finishes, knowing we are responsible for maintaining them for the long

Residential

Student

term. This ensures that our residents get the greatest quality that money can buy,” Friedman assesses.

“As Built to Rent is a relatively new asset class in South Africa, it has been very rewarding educating our residents about the benefits of having a single landlord who owns and manages the entire property thereby always being able to ensure that the residents can live in a peaceful, well maintained environment,” he adds.

SUNNINGHILL LIFT-OFF During Africrest’s buying spree, Friedman reveals, one area in particular caught the company’s entrepreneurial eye. “Sunninghill is a fairly new office node - only around 25 years old and exceptionally well-located in Johannesburg,” he details. “Until very

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INDUSTRY FOCUS: PROPERTY

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recently around 40% of it was tenanted

by Eskom, who rented eight or nine buildings in the area, neighbouring a number of its associate companies.

Over time, peaking around eight years ago, the traffic and road infrastructure became impossible, so terrible in fact that tenants began leaving the area.

“While the City of Johannesburg was midway through completing an incredibly extensive upgrade on the traffic and off-ramp system, all of a sudden Eskom itself upped and moved back into its main campus, The tenants who had left because of the traffic had still not been replaced, and now this mass exodus emptied Sunninghill further. It was a perfect storm for this district and its beautiful buildings, and we earmarked Sunninghill as the next area that we would convert and bring back to popularity.”

Holding its nerve as the pandemic took hold, when nobody could predict the financial stress it would wreak or the impact it would have on deal-flow and tenant demand, led Africrest to arguably its current showstopper in the heart of

AFRICREST PROPERTIES

// WE ONLY BUILD OUR APARTMENTS USING THE BEST QUALITY MATERIALS AND FINISHES // one of Johannesburg’s most central areas.

“Due to the pandemic, we had not yet finished the building we were converting across the road, our first in Sunninghill called The Alpha, when we landed another - the ex-PwC building came up for sale,” Friedman relates. “We now had this 28,000 m2 office building, set to become 680 apartments, and we hadn’t even proven the concept as The Alpha wasn’t finished. We were all too aware that if The Alpha didn’t let well, we would then be stuck with a real issue.

“We thoroughly stress-tested the numbers and took the plunge. Then, the minute that lockdown started easing and things began to open up again the leasing at The Alpha flew at upwards of 45 per month, so we knew we had done the right thing.” Named by its tenants, and converted by The Alpha’s construction team, The Apollo is Africrest’s newest flagship development that raises the bar even for this South

African property monolith. Africrest believe that this is the largest office to residential conversion in South Africa.

Apartments built to enhance comfort pair with designs that maximise space and function, and are supplemented by state-of-the-art facilities (including a 25 metre swimming pool, private zoom pods, a sports theatre, venues to host celebrations and a state of the art gym to name a few). Only minutes from major hotspots including Sandton, Waterfall, Midrand and Bryanston, the relatively new area of Sunninghill boasts exceptional accessibility, security and beautiful surroundings, a prime location with a vibrant community pulsing with energy.

“We started construction on The Apollo in October 2020, and the first units were let in May 2021, in a phased approach,” Friedman details. “With the development on the brink of completion, we have let upwards of 250 of the

apartments. It has been such a success because we are offering incredible value for money,” Friedman finishes, confident that this is nowhere near the last that we will hear of Africrest’s stunning developments, with more to come yet in Sunninghill and other areas.

“We have just bought another 12,000 m2 office park to convert to apartments down the road in Sunninghill and are looking at another development in Randburg, we will own just over 3,000 apartments in total by the end of the year,” Friedman wraps up. “It is very exciting, because the residential business only began in earnest five years ago. We have all been waiting, for years, for the environment to be right for growth, and were extremely lucky to discover the oasis of this residential section of the market.

Now we are determined to take it as far as it can go.”

WWW.AFRICREST.CO.ZA

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ELPHICK PROOME ARCHITECTURE

Collaboration and Innovation Keep EPA Building and Growing PRODUCTION: William Denstone

Characterised by comprehensive and effective professional service, intelligent design solutions and delivering exciting and innovative buildings and spaces, Elphick Proome Architecture (EPA) is a leading architectural firm with a long and distinguished history in South Africa. Adaptability and competences in every sphere of architecture has taken EPA across Africa and beyond, and with a boundless desire to collaborate and learn, an everbroadening network looks set to bring its designs to every corner of the continent.

//

Committed to architectural excellence, EPA creates exciting buildings, environments and spaces with functionality at their heart. Established in 1989, George Elphick, Founding Director, details the formation of the business and the foundations which have been fundamental to its success today.

“Nick and I had known one another for some years,” he says of his longstanding partnership with fellow Founding Director Nick Proome, “before we decided to embark on our own architectural practice on the basis of being awarded a small industrial project in Durban. That was nearly 35 years ago, since which time we have built a practice consisting of two offices in our

Durban stomping ground, where we have grown into a large and renowned practice within the South African architectural professional context.

“We have achieved this quickly in a relatively small city, and in the context of the reduced scope for work it offers.”

On this point, he says, it has been vital for EPA to adopt a can-do, master of all trades approach.

“We have found it imperative to be architects who take on work of any nature and scale. We are not specialists, per se, but have had to learn and develop competences within almost every sphere - commercial, residential, hospitality, health, industrial and mixed use and others, as the opportunities have arisen.”

CONTEXTUAL RESPONSE A more than three-decade legacy now sees EPA comprise three dynamic and capable architectural practices, created to deliver a complete and comprehensive range of design services in the African continent and beyond. “We created our second practice, Elphick Proome Studio, as an affirmative action collaborative, undertaking retail and commercial projects and engaging in educational and institutional projects in the South African context,” Elphick details.

The third practice is Elphick Proome Architects International (EPI), based in Grand Baie, Mauritius.

15 African countries have been uplifted by its work, with many of

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INDUSTRY FOCUS: ARCHITECTURE

these projects brought to fruition in collaboration with locally-based architects, yielding highly successful outcomes. “We have one ethos and one culture, but independent practices that respond specifically to particular needs,” Elphick summarises.

“EPA was conceived with a vision to create quality design solutions that offer enduring and innovative, functional design solutions appropriate to the context, region and climate. Simply put, a contextual response is the cornerstone of our approach, which has taken us across the whole continent and even into Europe.

“Fundamentally we are an African practice and as such we consider ourselves able to respond to the African condition, which is inherently Afro-centric, and requires a distinct

ability to be particularly resourceful from the inception of a project all the way through to its execution.”

A PEERLESS PORTFOLIO “We have gone from a very small entity to an appreciable practice which has offered a huge amount to the African architectural and development world.”

EPA’s contribution is now permanently etched in the African landscape, in the form of a design portfolio steeped in historic and class-leading constructions.

It is EPA’s ability to be flexible, agile and resilient in its service that has brought about such a breadth of completed projects. “Each design solution represents a very particular journey, all different in nature but with notably successful outcomes.

The spread reflects our commitment to specific responses, rather than a

branded approach that promotes a similarity between buildings,” Elphick assesses, highlighting the office buildings of RCL Foods as a singularly special opportunity offered to EPA. “This was a collaborative effort between numerous parties,” he details, “an integrated process of developer, landlord, contractor, ourselves and many others all working on the project at once. The resulting collaboration, I believe, created the energy to drive what is widely recognised as a building with a very discernible African quality.

Internally especially, to the extent that our interior design arm won the global award in 2017 for that project.”

The edifice, it transpired, was a key element in a much wider strategy for RCL. “This building was designed to facilitate the creation of Africa’s best and largest food company,

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ELPHICK PROOME ARCHITECTURE

to vigorously take on those really big brands that exist both national and globally. It allowed RCL to amalgamate a series of different businesses under a single umbrella, bringing together five or 10 disparate cultures into a single new whole and the building was one of the significant tools used by RCL to drive the new culture, extremely successfully.

“We have in turn used it extensively to further our own collaborative capabilities. Rather than be the dictatorial architect, we tend to listen a lot before we engage, and it all routes back to our love of developing relationships across the board.”

EPA’s Investec building was an entirely different venture to create a premium-grade banking corporate, Elphick explains. “This was a very tough project in many ways,” he admits, “to assimilate for South Africa’s homegrown international bank what had been done elsewhere in London, Zurich, Johannesburg and Cape Town, and make something of the brand that was predetermined. We took that brief and amplified it to create a very elegant building, which is still recognised as one of the premier office buildings in the country in terms of its architecture, its interior and its methodology to promote business.”

For Unilever, meanwhile, EPA was appointed to take on what was to be used by the British multinational as a landmark industrial project.

“This particular building was to be earmarked as the new standard for Unilever’s industrial processes. We had to design and document it within a three-week timeframe, which we accomplished, and created a building which became their icon globally for two years.

“It is a highly successful food plant crammed with strong architectural metaphors and a very complicated series of industrial processes. It was one of the very first buildings to be entirely off the grid from a water perspective, too, at a

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time when the sustainability agenda was but a fledgling idea. We are very proud to have been involved and forged some valuable relationships at the same time.”

EXCITING ENDEAVOURS Despite the slowdown in spending and nervousness within the commercial sphere, EPA has a lot of new business keeping it busy, learning and growing at present. “We have recently commenced a very sophisticated and substantial new head office building for some big clients of ours, GRIT and their development company Gateway Real Estate Africa (GREA), in Mauritius,” Elphick reveals.

“We are also currently at the design phase of a local university for a Japanese company which undertakes an MBA programme for

its employees and others, another fascinating new project upon which we are beginning to embark.”

One proposal that suffered terribly both pre- and throughout Covid is the largest mixed-use project in South Africa, the Oceans Development in uMhlanga. “This is a very exciting project which has gathered significant interest in the architectural and development world,” Elphick states.

“It has a substantial, high-grade retail and public interface podium, and then three towers on which we are the lead architects.” One of these is a new, 207 room Radisson Blu hotel, a high-end complex featuring luxury apartments.

This is yet another example of collaboration proving decisive for EPA, where it is teaming up with LYT and Ruben Reddy Architects to deliver this new urban resort. “It is well

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INDUSTRY FOCUS: ARCHITECTURE

George Elphick

underway for completion by the end of 2023,” Elphick informs us, “which is a great relief for us on such a critical project in one of SA’s primary holiday destinations. For the last two to three months there has been a lot of activity, and the biggest number of cranes Durban has ever seen on a single site.

“Through all of our past, and these current, projects, we have enjoyed excellent collaborations with other well-known architectural practices in the US, in France and in Britain,” Elphick adds, recognising that these alliances are going to prove crucial as EPA looks to extend its reach even further.

// OUR ENDEAVOUR IS TO CONTINUE TRAVELLING THROUGH AFRICA, AS WE HAVE BEEN SINCE 1997 // 48 / www.enterprise-africa.net

GROWING THE FOOTPRINT “A lot of developers in South Africa are questioning their rollout of anticipated pre-Covid developments at the moment,” Elphick describes, “so we feel almost bullish about opportunities we see elsewhere on the continent. We have a wide network to draw on and Africa is very much a growth area for us.

“Our engagement and establishment of a practice in Mauritius was somewhat fortuitous, a chance meeting with a young architect on the same flight as me heading back to settle in Mauritius following many years in this country. Within a month this had blossomed into what would become a thriving practice.

“We saw a distinct opportunity as we had a very strong client in Mauritius, for whom we are the preferred architect, who was engaging specifically in projects throughout Africa. This presented a very distinct and obvious synergy and prompted us to establish an international practice through which

all of our work taking place outside of South Africa, or the SADC, is channelled.

“Our long-term plan is to grow that even further,” Elphick goes on, “into a practice of perhaps five or 10 people. It will give us the gravitas we need to amplify our work in the Indian Ocean islands, where we see vast opportunities in terms of bringing an established South African practice to them, something which has not happened before in a territory mainly dominated by homegrown branches.

We have identified a big gap for hospitality, and even more so possibly for commercial and industrial in a growing environment.”

Having already done so much in such a relatively short space of time, and seized every opportunity to extend its network, competences and reach, EPA will now look to do much more with the abundant openings still available to it with its current setup. “We have no intention of opening other practices at this moment. We have collaborated

ELPHICK PROOME ARCHITECTURE

Illove

Nick Proome

with some very well-known outfits in London and New York, for example, on other African projects, and have established relationships throughout Africa with other institutions. There is a certain reciprocity with this, too, where we become the representatives of other international practices in an African context.

“Once again, this is all seeded in the principal of forging and promoting partnerships and affiliations. Our long-term consideration is that we will face certain challenges in South Africa in the next 10 years and while the market here is not shrinking - it will certainly hold its own - neither is it massively expanding.

“We believe therefore that our sustainability will derive from having this much bigger, more varied footprint,” is Elphick’s closing assessment. “Our endeavour is to continue travelling through Africa, as we have been since 1997, forging many new relationships and exploring numerous prospects along the way.

“We have found over the years that we tend to attract work that we have already done, and one thing that we see as a strength in our business is the ability handle many building types,” he adds. “We are capable in many areas, by necessity and through the experience we have accrued, and this will stand us in excellent stead to grow the business further.”

WWW.EPARCH.CO.ZA

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JOTUN PAINTS SA

Jotun Displays Boldness with Quick SA Recovery PRODUCTION: Manelesi Dumasi

After a dim 2020, Jotun Paints SA is going through a vibrant period following a successful 2021, emerging from the pandemic with expansion in its sights. Managing Director, Trevor Maughan talks to Enterprise Africa about how this expert business has managed the past 18 months. www.enterprise-africa.net / 51

INDUSTRY FOCUS: MANUFACTURING

//

Leading the way in paint systems and products that protect and decorate surfaces, The Jotun Group is beginning to see green shoots in the market following a period of uncertainty driven by the Covid-19 pandemic.

Globally, Jotun is an industry leader, with commanding market share across all markets in which it operates. A privately held Norwegian company with more than 12,000 people around the world, Jotun boasts 38 production facilities in 23 countries, with 67 companies in 47

// WE PLAN TO SECURE GREATER MARKET SHARE IN SOUTH AFRICA IN EXITING MARKET SEGMENTS // 52 / www.enterprise-africa.net

countries, and representation in more than 100 countries.

President and CEO, Morten Fon, said in September that, despite rising raw material costs and challenging economic conditions, the company had performed well for the first eight months of 2021.

“We are satisfied to have achieved another record result in a challenging period. Despite high raw material prices and continued uncertainty surrounding the pandemic in individual markets, Jotun has delivered a solid performance in most business areas,” he said.

In South Africa, forced lockdown in March 2020 hit the business with sales and manufacturing closed. But Managing Director South Africa, Trevor Maughan tells Enterprise Africa that his market is experiencing an uptick as confidence returns to the market in the year of Jotun Paints South Africa’s 25th anniversary.

“We have recovered very well from the impact of the pandemic. We have seen a strong recovery in sales

and profitability, mainly because there has been a recovery in the market and we have captured market share.

“During the first lockdown, we had no production and very little shipping.

We then became an emergency supply service company and we restarted supplying coatings to industries including energy, shipping and more.

That gave us some relief as an approved service provider,” he says.

DARK TIMES With many turning to DIY projects during lockdown, the demand for paint rocketed, but getting supplies out to consumers was a challenge.

For Jotun Paints SA, focus is not around decorative products. Locally, the company operates a B2B model, supplying protective coatings to specific specialised industry segments.

“We offer performance coatings solutions,” says Maughan, “we don’t sell decorative paints and you would not generally see our paints on shelves as

JOTUN PAINTS SA

a consumer. We are a B2B supplier and we work as a leading supplier of marine coatings to the New Build, Dry Dock and Seastock (on-board maintenance) markets in South Africa and surrounding countries. Protective coatings are sold to companies active in industries related to energy, infrastructure, offshore and hydrocarbon processing industries.”

But two major hurdles halted much of the company’s work – even in these important industries.

“In March 2020, we went into full lockdown with no one allowed to leave their homes. The impact on business in the second half of 2020 was significant, with a reduction in sales and revenue. It has eased over the past months as we have dropped through the lockdown levels,” explains Maughan.

Then, in July, came the political unrest, with rioting and looting wreaking havoc across KwaZulu-Natal and Gauteng. “That impacted the business temporarily to some degree,” admits Maughan.

Thankfully, Jotun Paints South Africa, and the wider group was able to call on a history that goes back almost a century to find solutions. This is a business that has been through up and downs and has experience dealing through economic cycles. The focus remained on being the best and delivering tried-and-tested products to customers that are looking for solutions to their problems.

“We are in well-established markets and we have a well-established range of products so we did not try and develop new business segments.

“We have a reputation as being a supplier of high-quality, highperformance products. We are not the cheapest in the market but our customers purchase from us they know they get high levels of product quality and great service value,” details Maughan.

CAUTIOUSLY OPTIMISTIC ‘Jotun remains well-positioned for further profitable growth, and the company

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INDUSTRY FOCUS: MANUFACTURING

continues to adhere to its long-term growth strategy and investment plan’, the company said in its media release at the end of the third quarter.

In South Africa, plans are in place to grow business and expand the reach of the brand while consistently serving clients with quality products and service.

“We plan to secure greater market share in South Africa in exciting market segments. We want to expand into new market segments in South Africa, and we want to expand with sales and revenue growth in the export countries that we are focussing on,” explains Maughan.

Currently, Jotun Paints South Africa is headquartered in Cape Town, with a

production facility on site. The company also has warehouses and offices in Johannesburg and Durban, servicing all of the country’s major metros and surrounding areas.

Outside of South Africa, Jotun exports, through distributors, to several countries in Southern Africa including Angola, Mozambique and Namibia.

The company’s international exposure helps it to deliver exceptional products, developed to specific international standards so global customers know what they are getting in South Africa or anywhere else they operate.

“We are a global supplier and we have the benefit of a global

// WE ARE A GLOBAL SUPPLIER AND WE HAVE THE BENEFIT OF A GLOBAL ORGANISATION WHEN IT COMES TO THINGS LIKE RESEARCH AND DEVELOPMENT AND PRODUCT AVAILABILITY // 54 / www.enterprise-africa.net

organisation when it comes to things like research and development and product availability. We also have local manufacturing and supply chains, and that that gives us an added benefit.

Some of our competition have this, but some have either pulled out or reduced operations in South Africa. We still have the benefits of global support with local activity,” says Maughan.

“We manufacture to international specifications and we don’t change the recipe locally. You can buy the same paint in the UK, USA, China or South Africa,” he adds.

PERMANENT VALUES Success and optimism within Jotun comes from a long-held and powerfully supported set of corporate values. The company, across all operations, fosters Loyalty, Care, Respect and Boldness as its most important principles. But, more recently, the company has added environmental sustainability to its mandate.

JOTUN PAINTS SA

“We have a very strong corporate culture based on a strong set of values and we believe that is very special,” says Maughan.

“We have a strong environmental commitment,” he adds. “We are looking, as part of our Jotun GreenSteps programme, to support a more sustainable environment by reducing carbon emissions and reducing energy usage in our plants.”

This process will result in a ‘more colourful world through taking greener steps’ the company states.

In September, it was announced that cargo vessels using Jotun’s Hull Performance Solutions (HPS) reported a 20% lower carbon intensity on average in operations compared to non-HPS peers in 2019 and 2020, according to MRV data published by the EU. This success for the marine division was hailed as a breakthrough by Stein Kjolberg, Global Category Director for Hull Performance at Jotun who said: “Vessels using Jotun’s HPS typically have farsighted owners and operators that are willing to invest to achieve the most efficient operations. They are not too focused on the immediate cost of dry docking or short-term returns.

They know the resulting fuel savings will eventually outweigh the upgrade cost of antifouling and other similar investments many times over. The fact that fuel savings translate directly into lower carbon emissions will further add to the return on investment in that stakeholders in the shipping industry will more strongly prefer and reward vessels with lower carbon emissions moving forward.”

In South Africa, this mandate will be taken forward with passion. Maughan, who has been with the company for 13 years and in SA for five, is certain that environmental commitment is a vital drier of future business.

“Jotun is committed to continually improving its environmental performance,” he says. “The Jotun GreenSteps programme coordinates the company’s efforts to support a

Trevor Maughan

more sustainable environment through reduction of VOC emissions, hazardous materials, energy consumption, carbon emissions and waste.

“Through the Jotun GreenSteps programme the company embraces initiatives to better protect the environment. This includes developing products that minimise impact on the environment, the way in which products are manufactured, and providing customers with paints and coatings that will reduce their carbon footprint and protect their property.”

Now promising to do more for the environment, as well as guaranteeing products that will enhance and protect

projects, Jotun Paints South Africa is well-positioned to thrive after a challenging period. Searching for increased market share with every transaction, Jotun remains hungry across southern Africa, and will constantly pursue opportunities to maximise its global position. Now is an exciting time for this colourful and robust business.

“We are without doubt a leading player in the South African market,” concludes Maughan.

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PICK N PAY

South African Giants Partner in Landmark Distribution Centre PRODUCTION: Benjamin Southwold

In May, Fortress REIT announced its biggest logistics development to date alongside Pick n Pay, at its flagship premium-grade Eastport Logistics Park. Once complete, the co-investment will produce one of the largest distribution centres in Africa, a development spanning 36 hectares to give Pick n Pay a distinct competitive advantage and advance Fortress’s long-term aims to dominate in logistics.

//

The famed Pick n Pay Supermarket brand has enjoyed over half a century of sweeping growth and dominance, brought into existence when consumer champion Raymond Ackerman purchased the first four Pick n Pay stores in Cape Town in 1967, and now found as far afield as Mozambique, Mauritius, Swaziland and Namibia.

It remains today a family-owned

business, and its central emphasis on the customer has seen it become South Africa’s leading food, clothing, and general merchandise retailer and a giant in the fast-moving consumer goods (FCMG) industry on the African continent. The Group’s store formats range from large, all-under-one-roof hypermarkets to small convenience stores to cater for immediate needs, underpinned by an all-conquering online platform.

CUSTOMER CHAMPIONS “We keep customers at the heart of our business,” says the Group of what essentially defines the Pick n Pay way.

“This philosophy informs everything we do, from how we treat our customers, to the product range we offer and how we design our stores. Putting the customer first means we work hard to understand their diverse and changing needs and how we can serve them better.” As a result, more than half of all

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INDUSTRY FOCUS: LOGISTICS

South Africans shop regularly in Pick n Pay stores, some of the most loyal customers in the country.

So well-regarded has the Pick n Pay brand become, that its reach has spread well past the borders of its nascent territory. “The Group serves customers across the diverse spectrum of South African society, and is expanding its reach into the African continent. Pick n Pay has established operations in Botswana, Lesotho, Namibia, Swaziland, Zambia and Zimbabwe and now runs 144 stores outside South Africa.

“Pick n Pay is a much-loved brand, valued within society, built on a genuine desire to make life better for our customers and to make a positive contribution to the communities in which we live and work,” is the Group’s overarching assessment of its work to date. “Our strong and unique family values have guided the business for more than 50 years, providing a solid foundation for growth, innovation, service excellence and generosity.”

The Group already operates some

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12 distribution centres across the country catering for groceries, fresh and perishable produce and clothing, and until now the two largest had been at Longmeadow in Gauteng and Philippi in the Western Cape. However, almost as paramount as infrastructure and operational efficiency to the Pick n Pay model are the partnerships it has fostered with both suppliers and service providers, long a cornerstone of its approach. The latest, announced in May, sees it team up with Fortress REIT (Fortress), the much-vaunted leading South African Real Estate Investment Trust, in arguably the biggest collaboration to date for either.

One of the largest real estate investment trusts in South Africa, Fortress specialises in developing and acquiring state-of-the-art logistics real estate, and convenient, commuterbased retail centres. It has enjoyed real success as the bounce-back from the turbulence of Covid-19 continues with the most recently released results in June highlighting the completion and

letting of 163,000 m2 of warehousing, with Fortress’s pro-rata share totalling a value of R1.3 billion.

“Completing, leasing and preleasing a total of nearly 400,000 m2 of space in a year full of operational challenges highlights our lending marketing position in the logistics real estate sector,” Fortress commented, while highlighting a definitive longterm strategy to pivot the business’s convenience retail and logistics real estate portfolio balance in South Africa.

“Our focus remains on driving our logistics assets and rolling out our pipeline,” clarified Steven Brown, CEO of Fortress REIT. “This deal cements our business strategy of developing and owning two-thirds of our portfolio in logistics, making us the largest owner and ongoing developer of core, premiumgrade logistics real estate in South Africa.”

DISTRIBUTION REVOLUTION It landed in May an immense coup in this important operational priority, signing by far its biggest logistics development

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to date through a landmark partnership with Pick n Pay at its flagship, premiumgrade Eastport Logistics Park in Gauteng.

In a prime location, the Park offers outstanding accessibility and visibility on the Albertina Sisulu Freeway, one of the major arterial routes in Gauteng linking Pretoria to the East Rand. Interest in the node is exceptionally high with Eastport also situated centrally to all Gauteng markets.

Distribution centres are integral components of the distribution chain for products, order fulfilment and produced goods, before shipment to wholesale or retail customers. Often referred to as the hub, if not the heart, of operations, they serve as a bridge between suppliers and their customers and are customer-centric, serving retail stores directly. “Modern and safe logistics parks are in demand, with more

clients looking to have a robust and localised supply chain,” agrees Brown.

Pick n Pay confirmed that this new development is set to cover 36 hectares of the immense infrastructure, with Fortress ultimately to own 40% of the development and Pick n Pay acquiring 60% of the new inland distribution site.

Scheduled for completion in 2023, Fortress will fund the incremental capital required for the development from existing available facilities. “The long-term Pick n Pay lease with an option to extend, as well as grow the size and footprint of the facility, is set to position Fortress’s Eastport Logistics Park and the broader R21 area as South Africa’s prime logistics hub, as allied industries and businesses seek proximity and rational integration into the country’s leading logistics ecosystem,” assessed Brown.

“We are proud of our partnership with Pick n Pay at Eastport Logistics Park in Gauteng which will see Fortress Logistics developing one of the largest FMCG distribution centres in Africa.”

For Pieter Boon, CEO of Pick n Pay, this newest inland distribution centre is a key investment in securing competitive advantage. “Fortress’s Eastport facility will help us deliver key logistics and supply chain innovations, achieving efficiencies and growing market share at a time when faster and cheaper service of our stores has never been more important to deliver on our customer promise of low prices and reliable service,” Boon wrapped up.

WWW.PNP.CO.ZA

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MASSLIFT AFRICA

Commitment to Service

and People Reaps Rewards PRODUCTION: Benjamin Southwold

Mitsubishi forklifts have an enviable reputation, revered as the most intelligent trucks on the market and among the most durable. Masslift Africa is their exclusive distributor in Southern Africa, renowned for exceptional customer service and an extensive product offering. Concentrating on its people and adopting an agile approach to challenge has produced record results in exacting circumstances.

//

Unsung heroes, certainly, but forklifts are among the most powerful weapons in the armouries of numerous Southern African sectors. Whether moving heavy loads through a warehouse or a construction site, forklifts can safely lift objects humans cannot, making

them indispensable to just about any large job. They also have multiple applications in Southern Africa’s highly diversified agricultural sector, proving themselves integral in every corner of the farm, while the surging automotive industry would also flounder without them.

The forklift’s versatility gives it a vital role in ensuring a smooth and effective logistics infrastructure, and now its more traditional, longstanding applications are furthered by the burgeoning e-commerce market of Southern Africa and the massive operational benefits of the trucks to effectively handle material.

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INDUSTRY FOCUS: ENGINEERING

Allowing the more effective deployment of manpower, reducing the time necessary to move goods and highly manoeuvrable, forklifts are taking the strain out of complex, heavy operations and propelling businesses to ever-greater heights.

SERVICE ABOVE ALL In an increasingly competitive market, Mitsubishi Forklifts are widely recognised as one of the top brands and most reliable products available.

Masslift Africa is the envy of many as the sole distributor of Mitsubishi Forklifts in Southern Africa, a partnership dating back some five decades, CEO Marco Caverni tells Enterprise Africa.

“The relationship with Mitsubishi began back in 1972, when the company was known as APE Africa,” he begins. “In 1982 it become the exclusive dealer in Southern Africa, and then Masslift Africa was born in 1992. Then, just before the recession hit in the mid-late 2000s, there was pressure to increase sales in the area while focusing on transformation within the company,” he details of an important epoch in the company’s timeline.

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“New Seasons Investment Holdings, a venture capital business and a blackowned company bought into Masslift to assist with transformation but also the company’s direction. The new shareholders went headhunting for industry specialists to take over from the exiting owner.

“Our now retired-CEO Geoff Tucker was running Barloworld Handling in the UK at the time, while I was working for Barloworld Handling in South Africa. The two of us joined Masslift Africa at the beginning of 2010 with a simple vision: to be the best service provider in the market.”

Today, Masslift Africa is renowned for its exceptional customer service, and Caverni positions this as one key element of its unrivalled success. “We honestly believe as an organisation, and especially in South Africa, that service levels are greatly under-appreciated,” he states. “There is no such thing as a bad forklift anymore, so it is all about offering exceptional service levels and prioritising relationships to differentiate yourself.

“To do that, it is imperative to build infrastructure, drive our company culture

// WE HAVE MANAGED TO GET THROUGH COVID-19 WHILE PRODUCING OUR BEST EVER RESULTS AS A COMPANY // daily and implement the right policies and procedures,” he explains, “and then, most importantly, invest in people.

Training and upskilling them, while inspiring them to buy into the culture of the business, is a major focus area for us.

It is impossible to offer the best service without the right people in the right positions driving the business forward.”

Masslift Africa has made investing in youth upskilling a particular focus of its business strategy. “The youth of today want to see change and they want to be a part of something special.

We are also flexible and always ready to implement change rather than stay stuck in the ‘old ways’ which is something the younger employees get excited about.

MASSLIFT AFRICA

We recognise the fact that their tech savviness is an asset, and we encourage them to drive change and innovation.

We have actually implemented a lot of innovative ideas that have been brought forward by young employees which have proven to be very effective,” Masslift’s COO Shaun Collins elaborates.

“The development of South Africa’s youth is critical to ensuring economic growth and a prosperous future for the next generation,” Caverni asserts.

“This makes us the custodians of the future careers that our employees will have, and we take it very seriously.

Growth is a central pillar of the Masslift organisational culture.”

To drive and support the company’s skills development plan, Masslift opened the ‘Theatre of Dreams’ training centre in 2018, to empower, upskill, and qualify employees at all skills and educational levels from novice apprentices through to advanced qualified technicians. Collins goes on to say that retaining qualified technical specialists is a challenge that Masslift, like other companies, faces along with the risk of losing employees to local and even international competitors. “In support of employee retention, we believe that our culture has roots and once this is imbedded in you, you generally find it very hard to leave, no matter what the circumstances.

In addition to this, we provide our employees with valued benefits that give security and peace of mind in both the short and long term. Apprentices who have qualified are automatically promoted to either a field or workshop service technician in the month following their graduation.”

Masslift Africa believes in not only investing in the youth through employment opportunities, skills development, and mentorship but also in assisting organisations that are dedicated to uplifting children and young people.

“As a company operating in South Africa, it is vital for us to play our part to ensure the stability of the economy but also the stability of the people living in our country. We believe in helping

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INDUSTRY FOCUS: ENGINEERING

where we can, and our CSI initiatives are intentional and driven towards that goal.

It’s important for us to plough back into the communities around us,” says Masslift CFO Thembi Mazibuko.

“We are on a journey at present, to say the least, but amid this chaotic environment the best thing is that we are doing it all together, bumping our heads and making mistakes but overall gaining traction and good market share.

Our staff believe that we are doing something truly special. For me, that it is the big positive of the company at present,” Caverni adds.

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A YEAR TO CELEBRATE Not only has Masslift Africa maintained operational continuity and proved its resilience throughout the pandemic, but it has also defied the context of shifting lockdown levels, fluctuating sector challenges and varying client requirements since March 2020 to pull off a quite remarkable performance. “We have managed to get through COVID-19 while producing our best ever results as a company,” Caverni declares, and Mazibuko underlines the enormity of this achievement.

“While operating under shipment and freight issues, riots and more, our net profit after tax for the financial year ending March 2021 increased by 120%, literally doubling and then some,” she explains. “The worst month in the history of the company was April last year, and in 11 months we have turned around a significant operating loss to be in the strongest position that the company has ever occupied.”

“We can feel the difficulties of the economy in customers facing liquidations and closing down, and yet for the first time ever in 2020 we sold over 1000 forklifts,” Caverni adds. “The sound strength of the business model and infrastructure should take some credit, but it is again testament to the attitudes of the staff. Our employees are the heroes of the Masslift success story during this pandemic. This, along with strong relationships with our OEM, Mitsubishi Logisnext, and local suppliers, has kept Masslift’s operations moving forward.”

It is, additionally, a vindication of the agile approach that Masslift Africa has adopted in the face of every new challenge and another key difference-maker. “Agility has been a defining factor for the businesses that

MASSLIFT AFRICA

were able to weather 2020,” Caverni recognises, “and was undoubtedly key to our survival. We realised that our staff would need to be equipped and supported within their individual roles every step of the way,” he reasons. “We knew that asking our staff to outperform in highly stressful conditions was a huge request and so agility had to start at the top.

“We used the virtual standstill of the initial months to lay the foundation for resilience,” Caverni details. “The view was that we were going to tackle the rest of the year with a better foundation and a stronger team, and I feel we did exactly that. The financial results from May 2020 onwards were outstanding and now the most difficult question we face is: how are you going to better it next year?”

For this young, dynamic and forward-thinking company, the

// GROWTH IS A CENTRAL PILLAR OF THE MASSLIFT ORGANISATIONAL CULTURE //

response could well be in the adoption of new technologies. “Digitisation has moved at a rapid pace due to the pandemic and thus it’s important to continually assess how we can enhance the customer experience through technology. It’s business unusual, we don’t have the comfort of the experiences from the past to draw from and thus it becomes critical to have a clearly articulated strategy on how to maintain the profitability of the business. We also need to leverage our Level 2 B-BBEE rating as much as we can because it’s a testament to Masslift’s commitment to transformation in the country and its development,” Mazibuko says.

Now with five branches and 20 sub-dealers across Southern Africa, the Masslift Africa commitment to service is setting it up to dominate for the foreseeable future. “We measure every single interaction that takes place with us,” Caverni says, “because we are always learning. Our average customer service rating for the year is at 86%, compared to the estimated industry standard of 60-70%, and we still have a lot of room for improvement.”

“We are cognisant of the fact that our service levels are greatly impacted

by parts availability and our service turnaround times. It’s thus a bit of an art to get the balance right to ensure that we focus on customer centricity while remaining profitable. When our customers express their dissatisfaction with our service levels, we address the issue promptly and transparently, and then ensure we learn from the mistake made as not to repeat it,” Collins adds.

Caverni’s conclusion is typically humble as he turns his attention to the company’s continued success. “We know that the product is amazing, and if we can keep our culture then the attitude of our staff will mean the forklifts pretty much sell themselves. We are also constantly exploring partnerships and opportunities which can complement our customer offering. We are not perfect, and we make mistakes, but we are striving to become so impressive that people have no desire to do business with anyone else, because the experience with us is unbeatable.

“It seems to be working.”

MITSUBISHIFORKLIFTS.CO.ZA

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ELLIES HOLDINGS

Solar Strategy Supports

Sustainable Success PRODUCTION: Karl Pietersen

Ellies Holdings is driving a new strategy that is customer centric and focuses on the development of the solar industry in South Africa. By providing niche products, and utilising a national base of knowledge, this business is innovating to thrive in tough times. CEO Shaun Prithivirajh tells Enterprise Africa more about success for this famous SA brand. www.enterprise-africa.net / 67

INDUSTRY FOCUS: MANUFACTURING

//

An insurmountable task was what faced Ellies Holdings CEO Shaun Prithivirajh when he joined the business in August 2018. Turning around and reshaping a long-standing brand, and reinvigorating a business that has so much to offer South Africans seemed liked an attractive prospect, but the numbers were uninspiring.

Ellies is a holdings company involved in trading and distribution of a diverse range of products and services, including Digital Terrestrial Television (DTT), satellite products and related accessories, electrical, signal distribution, residential and

// WE ARE OPTIMISTIC. WE ARE NIMBLE – WHEN WE SEE THINGS IN THE MARKET, WE ARE QUICK TO ACT // 68 / www.enterprise-africa.net

commercial LED lighting solutions, solar PV, sound and AV equipment distribution and installation.

Established in 1979, listed on the JSE main board in 2010, and restructured in 2015, Ellies was in need of modernisation. Quickly, Prithivirajh went about refocussing and repositioning the brand, while strengthening partnerships with retailers around the country.

But the unpredictable South African economy and the onset of the Covid pandemic dashed hopes of a quick turnaround. Today, Prithivirajh is busy with a new growth strategy – one which will see Ellies transform and serve new markets using its extensive knowledge and experience of the South African landscape.

“In 2019, when we took over the business, it made a R56 million loss,” Prithivirajh begins. “We cleaned it up and part of that clean up meant a write off of a large amount of stock. We had to restructure, unfortunately let some

people go, and in 2020 we made a R132 million loss. In 2021, in the middle of the pandemic and in some of the toughest economic conditions South Africa has ever faced, we have posted a R57 million profit.”

Quite remarkably, this shift in fortunes came while many others have suffered. Prithivirajh puts the success down to three things: Brand recognition, reach, and culture.

“The brand is recognised and trusted by both the consumer as well as businesses. Ellies has a tremendous relationship in the retail sector, with independents as well as all the major retailers – that is something which very few other businesses have. Over 40 years, Ellies has been innovative and delivered on its promises. We also have a network of branches across the country and that makes the brand and its products accessible to consumers.

“The business has gone through tremendous change and the culture change has been very positive.

ELLIES HOLDINGS

Employees know where the business is going and there is a new way of thinking, putting the customer at the centre,” he says.

ELECTRICITY IN THE AIR Ellies Holdings is home to Ellies Electronics, Ellies Commercial Solutions, Elsat Rentals and Ellies Renewable Energy. “It’s a very complex business that cannot be placed in a single silo,” admits Prithivirajh. The focus of the group is shifting to accommodate human necessities in the product range. Previously, part of the range fell into the category of ‘wants’ rather than ‘needs’, and – particularly around renewable energy – Prithivirajh is keen to change this.

“A large part of what Ellies was about was providing the equipment for the installation and carrying out

the actual installation at individual homes to allow them to receive broadcasts from Multichoice and DStv. That still remains a large part of our revenue today. However, with the introduction of things like streaming, satellite television is on the wane. We have started diversifying our revenue streams and a big focus for us is alternative energy - solar is a big part of that.”

Currently, Ellies imports solar panels and inverters as well as batteries and accessories. These products have become essential household items for those looking to power electronics during periods of load shedding.

“Solar energy in South Africa is a necessity because of the numerous challenges faced by Eskom over many years. It’s a constant problem and load-shedding continues to blight

the country,” details Prithivirajh. “We developed an inverter trolley and you charge it while the lights are on and then it kicks in when the lights go off. It’s like a generator but without the noise and fuel. You could plug in and use for around two hours without power and we realised that the demand for this type of product is growing. People are looking for a more permanent solution as it was two large batteries encased in a metal covering with wheels. But you still have to charge it through Eskom and solutions must be more long-term. There is also the movement towards solutions that lower the carbon footprint. We are a coal economy and we have to move away from that.”

The network that Ellies has built, going from house to house in South Africa installing television aerials and other equipment, has helped develop

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INDUSTRY FOCUS: MANUFACTURING

// OVER 40 YEARS, ELLIES HAS BEEN INNOVATIVE AND DELIVERED ON ITS PROMISES //

“It was natural progression for us to move into alternative energy. It’s still early days and it is a difficult market – the SA Rand does not help us as we have limited production of the raw material required – it is expensive for homeowners, but the trend is catching on,” says Prithivirajh.

trust in the market. This provides a robust platform for the company to grow its solar installations business.

“Because we are calling into people’s homes through our installers, it is a natural fit for us to go out and say ‘we have developed our skillset and we can come to your home with an alternative – solar installations’. Our unique selling position is the relationship we have with individual homeowners who trust the Ellies brand. South Africa has major security concerns but for more than 40 years, people from Ellies have been entering homes around the country and there is a level of trust,” explains Prithivirajh.

Thanks to the nature of the Ellies Holdings business, being exposed to many complementary industries, solar energy was an obvious choice for expansion.

REPOSITIONING DURING COVID For all businesses, the news that South Africa would enter lockdown in March, and the general public would be confined to homes, was unwelcome. The need to control the spread of the virus had to be balanced with the ability for people to earn and live. Unfortunately, this balance was never truly found, anywhere around the world. But, for some companies, registered as essential service providers, work continued during lockdown.

News delivered through television was a key information source in the early stages of lockdown as the government had to distribute timely updates to a worried public. Ellies was a key enabler in this process, responsible for many of the installations of aerials and satellites around the country.

“We have been rather opportunistic during Covid because we were wellplaced to do so. With the announcement

of our first restrictions in March 2020, there was insufficient information around what this entails. This was global and people really didn’t understand about how long this would last. The panic buying began and people were staying at home at all times. In our industry, we are entertainment enablers, we have to keep people occupied. It worked to our advantage,” says Prithivirajh.

“At the same time, Eskom decided to carry out maintenance and that impacted people at home. Our invertor trolleys became a huge seller and demand outstripped supply. The first half of 2020 was incredible for us. We were also one of the few businesses in South Africa that had an essential services provider license so we could operate while others were closed because we enable people to receive the news.”

This fortuitous position allowed the company to thrive, but it was short-lived as the company began to witness the economy crumble. “We began to see the effects of companies closing down.

Cracks in the South African economy were there long before Covid and companies were already struggling.

Covid just highlighted the problems,” confirms Prithivirajh.

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INDUSTRY FOCUS: MANUFACTURING

“There was initial panic buying and then there was a lag with people being laid off work and we began to see that around August and September.

This was made worse with us entering the second wave during our biggest trading months around the festive season. There were no trading volumes during that period and that trend has continued. There hasn’t been any substantial uptake through this year that I can see.”

In July, political unrest and lawlessness resulted in R20-25 billion being looted and GDP being impacted. Ellies is a distributor, supplying to a number of retailers, many of which were affected with stores plundered and infrastructure destroyed. The effects of this major setback are not seen immediately and confidence in the economy is eroded over a long period. People’s buying ability is affected, companies struggle to justify investment, and international investors hold off while they feel nervous. This was a driver of the strategy adjustment at Ellies.

“The unemployment rate is at 34.4% and that doesn’t take

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into account those that are underemployed. We have an unemployment problem, the market fundamentals are not that great – it’s a difficult space,” admits Prithivirajh.

“Consumers are looking for value and necessities. Those things that are nice to have are now being avoided.

Large ticket spends on things like DStv are now being weighed against buying food. The choice is obvious,” he adds. “This is a long-term issue and, fortunately, we are in the market of necessity. We are migrating away from solely Multichoice and DStv towards things you need like energy. Many schools are now teaching virtually - we are playing in these spaces.”

LONG-TERM VISION After doing well to return the business to profit in a demanding time, Prithivirajh has one eye on the future, and accepts that the longer-term vision for Ellies may now take longer to achieve. However, there is confidence in the company – especially around the switch to renewable energy.

“We continue to focus on what adds value,” he says. “We are optimistic.

We are nimble – when we see things in the market, we are quick to act. We will drive solar as we believe it is a very important requirement for businesses and homes.

“Solar has many avenues – it isn’t just a straight sale to an individual.

There could be a rental model or a rent-to-own model, we could create a second billing system – there are many alternatives, and we see it is a large area for us to play in. It does take time and we cannot move with the economy going backwards.”

ELLIES HOLDINGS

// WE HOPE, IN THE NEXT TWO TO THREE YEARS, BECOME SYNONYMOUS WITH SOLAR // He is also buoyant about solar being a relatively fresh industry in South Africa, without a clear industry leader.

“We hope, in the next two to three years, to become synonymous with solar. There are small players and they are all internet/ecommerce-based – we are the only ones with brick and mortar stores around the country. We are not going to close or disappear. We need to leverage that trust and take a leadership position in solar.”

By expanding its retail footprint, especially into more rural and underserviced areas of the country, Ellies is also looking to take share in regions that other retailers have neglected. At the same time, Prithivirajh is also looking to leverage technology to a far greater extent across internal operations of the business. This will drive cost savings, efficiencies and productivity.

“That is our growth plan, and if the horizon is stretched out over five years

so be it, but we believe that is the space we absolutely have to be in,” he says.

Ellies directly employs around 500 people and relies heavily on a team of more than 3000 installers present around the country who are not directly employed but their income is derived solely from working with Ellies. There are plans in the pipeline to grow this reach as the company sees opportunities in neighbouring nations, but this expansion will remain on hold while the South African economy stabilises.

“It was on the cards, especially in the markets we are already in outside of South Africa. But Covid has forced us to refocus on our home market, which is our biggest market,” says Prithivirajh.

“This is where our energy, focus and resources are being spent. We will revisit larger sub-Saharan Africa strategies at a later point when profitability returns to the market. Right now, it is challenging enough dealing with our home market so heading for the continent to explore

– the timing is not right. We have done a lot of things right, but like everyone, we are at the mercy of the larger economy.

When confidence and growth returns to the markets, we will start exploring the ‘nice to haves’.”

Having achieved positive results and continuing to execute on its strategy, Ellies is moving into 2022 in a strong position. Shaun Prithivirajh is confident despite the obvious challenges and will continue to implement positive change to keep Ellies on the right track.

“One of the things we have done well is take a company that done things in a set way for 39 years and, in a short period, migrated to a new way of doing business. Of everything we have done, that is the most critical that has contributed to business success.

Changing the way we operate and a change in our culture to become inclusive has been very important,” he concludes.

WWW.ELLIESHOLDINGS.COM

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TALBOT

Sustainable Solutions to Significant Water Challenges PRODUCTION: Timothy Reeder

Amid increasing pressure on water resources and a global rise in supply-risk and cost of total water management, Talbot offers expertise in sustainable water and wastewater solutions across Africa. CEO Carl Haycock tells Enterprise Africa how the company is using big data to drive efficiencies and achieve massive industry-set targets, as it bids to lead the way in enhancing recovery opportunities of this vital commodity.

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INDUSTRY FOCUS: UTILITIES

//

Established in 1989, Talbot’s purpose is threefold: to help clients understand and mitigate their water risks , effect waterrelated savings and enhance business sustainability – from the analysis and assessment of water use to the design, implementation, construction and management of bespoke solutions.

“Our collective experience provides our clients with the assurance of insight, innovation and quality,” Talbot outlines.

“By integrating expertise from our engineers, scientists and technicians, we deliver a range of innovative, yet robust solutions across a broad range of industries. We have over 30 years’ experience, enabling delivery projects in more than 20 countries in Africa, Australia and Eastern Europe.

“We are committed to providing practical sustainable solutions to address the water related challenges for our clients.”

WATER NET ZERO “Talbot began in a garage, offering laboratory services – specifically water analysis and then moved quickly into the wastewater space and became a continent-wide player,” CEO Carl Haycock says of the humble beginnings which have paved the way for a rapid evolution to an over 200-person-strong outfit .

Talbot’s suite of capabilities is made possible by the confluence of a number of integrated, complementary services including data and analytics, strategic and operational water advice across industry sectors as well as the

// WE ARE COMMITTED TO PROVIDING SUSTAINABLE SOLUTIONS TO ADDRESS THE CHALLENGES IN THE WATER AND WASTEWATER MANAGEMENT INDUSTRY //

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design and turnkey construction of water, wastewater treatment and water recovery facilities for blue chip clients across the continent.

Further support is provided to clients through the provision of total water management and optimisation services, encompassing water, wastewater and water recovery across the full production cycle. While Talbot’s commercial environmental laboratory offers a full range of microbiological, organic and inorganic environmental analytical services having established itself as one of Africa’s premier environmental laboratories.

With focus sectors such as FMCG, food and beverage, agri-processing, industrial and mining, Talbot offers everything from strategic consulting, technical assessments and feasibility studies to plant design and build services, operational support and environmental laboratory services.

Haycock is firmly of the view that it is the combination of Talbot’s individual elements that give it the edge. “Most

TALBOT

sustainability companies don’t have the same level of access to data and deep technical knowledge that is built into our strategies,” he says. “We have the strategic and technical teams integrated into the strategy, and then the data feeding into that. Having all this in one company enables us to identify and provide deep support in delivering strategic opportunities for our clients.”

Two of Talbot’s specific current focuses are on water recovery and water security, Haycock elaborates, “key aspects of the relatively new concept in the sustainability space of net zero water.” Long established as a crucial climate target for carbon, net zero is now being built into the water industry, he explains.

“Previously, companies had been striving for zero liquid discharge, but now it is much more about reducing water consumption, by a percentage, and improving water recovery with less discharge into the environment.

Like carbon, companies are looking to offsets to improve this even further.”

Talbot has a wealth of expertise to offer in this sphere , Haycock goes on. “South Africa is a water-scarce country, as is a lot of Africa. Much of our long-standing water optimisation work relates to reducing consumption and improving efficiencies in processes and plants. This brings a knock-on effect of reduced costs, but also at a sustainability level, there is the opportunity to reduce demand on the supply.

“The grounding that we have in water scarcity is something which is completely exportable and we are driving that into the international market right now.”

// WATER RECOVERY IS ESSENTIAL TO OUR SUCCESS, NOT ONLY AS A BUSINESS, BUT AS HUMAN BEINGS //

CHEMETRIX Environmental testing challenges have never been greater, whether analyzing contaminants in waste water or purity of drinking water, measuring indoor air quality, responding to natural or manmade disasters, or identifying emerging contaminants.

Environmental analysis must be done more reliably, more efficiently, and with even higher quality results than ever before.

Agilent offers over 40 years of environmental analysis & regulatory expertise. Solutions for water, air, soil & food analysis include: • ICP Environmental Solutions for Metals & Nanoparticles • LDIR technology for Microplastics • GC & GC-MS Solutions for VOCs, SVOCs, PAHs, PCBs, Air Quality, Pesticides etc.

• HPLC & LC-MS Solutions for PPCPs, Hormones, Pesticides, PFAS etc.

Agilent Environmental Solutions: Speed. Accuracy. Productivity.

www.chemetrix.com

www.enterprise-africa.net / 77

INDUSTRY FOCUS: UTILITIES

TALBOTANALYTICS Talbot’s water security specialism works hand-in-hand with another of its major current concerns. “We are evolving fast a business, and intentionally so,” Haycock continues, “and have developed TalbotAnalytics, a digital Software as a Service (SaaS) platform specifically focused on water and its optimisation, giving total water management.”

Its applications relate to anything from water quality, consumption and recycling rates to cutting plant chemical costs and monitoring operator performance against standard operating procedures.

“It is geared specifically towards private sector clients in the likes of mining and agri-industries, FMCG and other larger water users and essentially automatically optimises processes associated with water.” The digital, cloud-based water management application enables big water users to access and interpret big data in realtime, anywhere in the world.

“By using water data properly,” Haycock elaborates, “opportunities to achieve efficiencies of anything up to 35% quickly emerge, some of which is simply from behavioural change. It is developing very quickly, and is an international pursuit; we have so far engaged China, Europe and the US, and currently there is no product like it globally - the feedback we have had is that it is a truly unique offering.

“Its software allows it to be delivered anywhere in the world and, working with international partners with an interest in South Africa and its companies, is a key part of our strategy.

“Big water data is big,” furthers Talbot Strategic Director, Helen Hulett.

CEO - Carl Haycock

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// BY USING WATER DATA PROPERLY OPPORTUNITIES TO MAKE EFFICIENCIES QUICKLY EMERGE //

TALBOT

“It’s constantly changing, complex and comes from various sources. It’s also stored in different places so pulling it all together to make informed decisions is a science in itself. TalbotAnalytics acts as a single repository to enable users to visualise and interpret their data and enable more insightful and strategic business decisions.”

ASPIRING LEADER There is so much to set Talbot apart as a global leader. “We are a very diverse business,” says Haycock, “a truly South African enterprise with every culture and heritage represented within the organisation. We are more than 70% female at a leadership level and just under 50% across the entire business.

This, I believe, adds real value to the business, allowing us to engage with different people, backgrounds and cultures much more easily and naturally compared to most other South African players in this sphere.”

It has allowed Talbot to continue growing and diversifying even amid the trying business conditions that Haycock describes over the last 18 months. “There was almost a complete hiatus in spending on future investment in strategy and equipment.

Nobody was prepared commit capital to projects,” he outlines.

Nonetheless, Talbot was able to come to the rescue of a leading Highveld coal producer in the removal of gypsum from its waste stream to free up capacity at a downstream dam. The efficacy of Talbot’s solution was proven on site during live operations through pilot testing, and delivered impressive

// WORKING WITH INTERNATIONAL PARTNERS WITH AN INTEREST IN SOUTH AFRICA IS A KEY PART OF OUR STRATEGY //

results, reducing waste solids from around 2,900 mg/l to just 84 mg/l.

“Dealing with sludges and waste streams, typically with high suspended loads, is often required to provide a total water management solution and is viewed as being both a complex and expensive process,” Haycock delineates, “but this needn’t be the case.”

Also in 2020, Talbot installed the first Econvert Eco Digester on the African continent, technology to which it has the exclusive rights across Africa and the Indian Ocean Islands. The Eco Digester offers beverage producers, breweries, distilleries, food processors, dairies, sugar and pulp mills a costeffective way of enhancing water and energy recovery and use, and by using an AD system, production facilities can generate biogas to utilise renewable energy in their processes.

Haycock is unambiguous in his assessment of how far this expertiseled, technology-enabled and dynamic approach can take the business. “We firmly believe that Talbot Analytics can conquer internationally, and this forms a large part of our growth ambitions,” he wraps up. “Water recovery, though, is essential to our success not only as a business, but as human beings, and we are going to drive this area incredibly hard moving forward.

“As a business we are ambitious, and we have the team in place to allow Talbot to become be the leading provider of sustainable water and wastewater solutions across the African continent.”

WWW.TALBOT.CO.ZA

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TRANSNET

Driving the Vaccine Rollout

While Sustaining SA’s Economy PRODUCTION: William Denstone

As the custodian of South Africa’s ports, rail and pipelines Transnet is the largest and most crucial part of the country’s freight logistics chain. It has showcased an arguably even more crucial side to its capabilities as the pandemic has taken hold, sustaining vital infrastructures while introducing its transformative Transvaco initiative to bring vaccines directly to the people.

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INDUSTRY FOCUS: LOGISTICS

//

“Transnet’s objective is to ensure a globally competitive freight system that enables sustained growth and diversification of the country’s economy.”

// TRANSNET CONTINUES TO LEAVE AN INDELIBLE MARK ON THE LIVES OF ALL SOUTH AFRICANS //

TRANSVACO DELIVERS The Transnet Foundation represents the Corporate Social Investment (CSI) arm of the company, and has been the vehicle by which Transnet has been able to deliver far-reaching benefits and support to vitally impact the communities and environments in which it operates.

Vast time and resources have already been dedicated to introducing a number of diverse programmes around the country, and in August we learned of arguably Transnet’s most significant, impactful CSI drive to date. “Development began in February,” Zodwa Mashishi, Executive Manger: Corporate Affairs, Transnet Engineering, begins, of the pioneering Transvaco vaccination train introduced to bolster government efforts to reach herd immunity in the midst of the Covid-19 pandemic.

“We realised that Covid-19 was going nowhere, and we saw the opportunity here to provide an unmatched response to what we could see unfolding not just locally, but globally, to ease the burden on healthcare services.

Transnet’s structural transformation in 2007 prompted a wholesale reshuffling and repositioning of the legendary brand.

The main outcome of this evolution was the establishment of a coherent set of business units and operations, able to function together effectively as one single monolith to deliver on its philosophy of, ‘one company, one vision.’

All of the Transnet sub-brands are driven by this same central principle, uniting freight rail, rail engineering, national ports authority and port terminals, pipelines and property to operate and control South Africa’s major transport infrastructures and ensure that these operate to world-class standards.

“As a state-owned company, Transnet continues to leave an indelible mark on the lives of all South Africans,” sums up the company, headquartered in the Carlton Centre in Johannesburg. “With a geographical footprint that covers our entire country, Transnet is inextricably involved in all aspects of life in South Africa.

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// WE HAVE THE EXPERIENCE, THE EXPERTISE AND A HIGHLY COMPETENT WORKFORCE WHICH WE CAN EMPLOY IN DISTRIBUTING THE VACCINE NATIONALLY // “Obviously, we have all felt the devastating effects of Covid-19, and continue to do so, and this was our effort to help rollout vaccinations countrywide. We realised that we had an almost unmatched capability to actually put this into practice, paired with inhouse engineers able to design these coaches in line with what we have done successfully before.”

It is modelled on the Phelophepa health trains, which have been providing primary healthcare services in under-serviced areas across South Africa over the past 27 years. “Similarly, but on an even larger scale, the Transvaco aims to reach, and vaccinate, communities in remote parts of the country, and areas where health facilities are overburdened,” Mashishi explains.

With state-of-the-art vaccine facilities including ultra-low temperature vaccine fridges, Transvaco was designed and built by the Transnet Engineering manufacturing division and can store up to 108,000 vials of different types of Covid-19 vaccines.

Vaccine availability and procurement have improved markedly since the end of the summer months, and South Africa is now one of the 15 countries worldwide currently where 10% of the populace is fully vaccinated, per WHO targets. It has also now surpassed the 16 million mark for total administered Covid-19 doses since the start of its vaccination rollout programme.

Coega SEZ advances socio-economic development amid the COVID-19 Pandemic

Re-building the South African Economy: Coega SEZ recently announced the coming online of five investment projects by the end of 2021 - TransMerch Africa (R37 million), APLI (R180 million), Seraphim (R362 million), DHL (R20 million), and Cochrane (R10 million).

The Coega Development Corporation (CDC) is headquartered in the City of Gqeberha, Nelson Mandela Bay Municipality, South Africa, with a strategic operational footprint in South Africa and beyond the boarders in the African continent. The CDC’s vision is to be the leading catalyst for the championing of socio-economic development. This it seeks to achieve through the development and operation of the 9 003 hectare Coega Special Economic Zone (SEZ), a transshipment hub and a leading investment destination in Africa, providing highly skilled competence and capacity for the execution of complex infrastructure and related projects throughout South Africa and selected markets on the African continent, and advisory on the development of industrialisation and logistics zones. The CDC’s advanced capabilities are successful enablers in economic zone development and management, real assets management, infrastructure planning and development, technology integration while realising related socio-economic impact areas such as skills and SMME development. The foundational culture of the CDC’s approach, backed by core values, is innovation and continuous improvement.

The CDC is encouraged by the increasing number of new investors in the Coega SEZ. These investors are planning to open their facilities this year, despite the current economic challenges as a result of the COVID-19 Pandemic. The CDC welcomes these developments. This demonstrates the Coega SEZ’s resilience, and its ability to adapt in the face of economic challenges, as the leading SEZ in the continent.

The Pandemic has caused massive disruptions to the flow of FDI; as a result, the investors are looking for markets that will ease disruptions in their production chains, environments that are swift to implement measures to stimulate economic recovery & growth and provide policy certainty amid a global challenge. SEZs seek to leverage the potential of their locations and infrastructure in providing a conducive environment for these linkages to take place. In a study by the World Bank, titled Special Economic Zones in Africa, it highlights the potential of SEZs to contribute to improving Africa’s competitiveness and its integration with the global economy and how SEZs could help to create jobs and raise incomes.

Consistent with the aforementioned vision of the CDC, the Coega SEZ will, by the end of 2021, operationalise additional Five (5) investor facilities, amounting to R606 million worth of private investment. These investors include TransMerch Africa (R37 million), APLI (R180 million), Seraphim (R362 million), DHL (R20 million), and Cochrane (R10 million).

Currently, the Coega SEZ has a staggering of 50 operational investors with a combined investment value of R11,63 billion, making Coega the preferred investment destination on the Continent. The SEZ has received local and international awards of excellence, including the DTIC’s Investor of the Year Award, at the 6th Annual South African Premier Business Awards. The Coega SEZ has been acknowledged by the International Institutions as the case study for SEZ operations and development on the continent. Our investors benefit from Coega’s excellence including its ISO certified systems and processes, said Dr. Ayanda Vilakazi, CDC’s Head of Marketing, Brand and Communications.

The multi-user tenant, TransMerch Africa, is in Zone 3 of the Coega SEZ, and is expected to become operational in December 2021. This manufacturer of chemicals and products for supply to the automotive industry is expected to create 15 jobs.

The African Port Logistics and Infrastructure (APLI) in Zone 1 of the Coega SEZ has completed the development of the fruit cold storage facilities and a container depot; it became operational in June of this year. During construction, APLI created more than 720 jobs, and is expected to create a total of 228 operational jobs when fully operational.

Seraphim, located in Zone 3 of the Coega SEZ is expected to be ready for commissioning towards the end of December this year. The Seraphim facility will produce Solar photovoltaic cells and during construction it created more than 81 jobs. When fully operational the company is expected to create over 324 operational jobs.

The SEZs play a critical role in the logistics sector. Another investor that will be starting operations in October of this year is DHL. The company recently completed the construction of its facility in Zone 1 of the Coega SEZ. The construction of the facility has seen over 260 people being employed, and is earmarked to create a large compliment of local employees when fully operational.

Cochrane, located in the Multi-user facility in Zone 3 of the Coega SEZ, provides a storage and fencing solutions and related products. It became operational in the Coega SEZ in April of this year. Currently, the investor has created seven (7) operational jobs and this number is expected to increase over the years.

The SEZs, such as Coega, are a catalyst for employment, transformation, socio-economic development, and industry growth. Therefore, working together with our valuable investors and stakeholders, we can advance the socioeconomic development of the country, and then fast-track sustainable inclusive growth in line with the country’s Economic Reconstruction and Recovery Plan.

For more information on the Coega SEZ, and investment opportunities, contact: Dr. Ayanda Vilakazi (B.Com (Hons), MBA, DBA) Unit Head of Marketing, Brand and Communications E-mail: ayanda.vilakazi@coega.co.za Telephone: 041 403 0464 Fax: 041 403 0401 WhatsApp: 082 645 7277

View Coega Corporate Video www.coega.co.za Follow Coega on social media

INDUSTRY FOCUS: LOGISTICS

The innate portability of Transvaco, combined with Transnet’s unerring aim to harness the power of people and technology to secure a brighter future, could prove crucial not just within South Africa’s borders but throughout Africa, where roughly 10 in 100 people have now received at least one dose.

“We said to ourselves: we have the experience, the expertise and a highly competent workforce which we can employ in distributing the vaccine nationally, so let’s use it,” Mashishi goes on. “This vaccine is going to continue to be produced for a long time to come and it will need to be distributed, and Transvaco’s value could even extend beyond the South African efforts and across the whole continent.

// WE OCCUPY SUCH A DIVERSIFIED POSITION, BUT OUR DIVISIONS COMPLIMENT EACH OTHER PERFECTLY //

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“It is a real showcase of our capabilities along the whole process, from engineering, to design and manufacturer, and finally handover, and represents a monumental milestone for us. We are proud to be offering this huge helping hand to government to expedite the vaccine rollout, not just here but as far as the likes of Swaziland, Botswana and Mozambique. We are taking the clinic directly to the people and maximising the delivery of this critical vaccine.”

STRENGTH IN INTEGRATION With life-changing ingenuity in full swing, February turned out to be a busy month for Transnet as it showcased its ability to combine this with the maintenance and uplift of its core, more conventional operations. Forced to act swiftly and decisively at the height of the pandemic to improve locomotive availability and stabilise capacity on its vast coal line, Transnet succeeded in shoring up supply of this vital export commodity.

Coal volume deliveries had been impacted by a litany of obstacles including low demand sparked by

Covid-19 and theft incidents. In response, Transnet implemented the fast-tracking of locomotive maintenance where feasible, reallocation of suitable locomotives throughout the business and robust integrated security management plans.

Transnet also used February to pilot an innovative inland operation at the Cape Town Container Terminal, resulting in relief on the roads and goods being moved more efficiently to the ports while reducing costs. Successfully easing congestion, the haulage of reefer containers from Belcon Inland Terminal in Bellville to the port was an astute bid to improve efficiencies, initially involving 20 containers and set to be gradually increased.

Unlike a truck, which carries one reefer container per trip, one train has the capacity to carry and deliver up to 36 containers each time. Mashishi pinpoints the modal shift from road to rail as a key focal point for the country’s onward efficiencies, and this is just one of the projects supporting the company’s strategy. “The roads are experiencing difficulties on a daily

TRANSNET

// THE TRANSVACO AIMS TO REACH, AND VACCINATE, COMMUNITIES IN REMOTE PARTS OF THE COUNTRY // basis,” she reveals, “and this is largely due to market share. Trucks are carrying coal and containers, which is totally inefficient, and the question for us to answer is how to seamlessly take back that market share from roads and towards rail, where there are big savings to be made.”

Although less likely to dominate headlines than the potentially eradefining importance of Transvaco, these recent triumphs are no less illustrative of the company’s dominance in South African logistics, and there are several factors poised to keep it at the top, Mashishi makes clear.

“Our people have long been a key differentiator for us,” she says. “We have a very skilled, competent and capable workforce ranging from engineers to artisans and technical people. Our facilities are way ahead, as well, and our in-house capacity is amazing, while from a research and development and knowledge point of view we have time and again demonstrated that nobody else comes close.

“More than anything, though, it is integration that is vital.” Transnet’s integration as a freight transport company, around its core of six complementing operating divisions, has been transformational. The likes of the Cape Town Container Terminal collaboration between Transnet’s Port Terminals and Freight Rail divisions demonstrate this strength explicitly, but it is integral to Transnet’s entire approach and lends it the strength required to be the backbone of the country’s freight logistics chain.

“The main intention of the 2007 structural transformation was to achieve

a coherent set of business units and operations that could function together effectively. We certainly achieved this aim, and now he reality of the value chain makes it essential that we remain integrated,” Mashishi underlines of this central aspect of Transnet’s operations.

“We occupy such a diversified position but our divisions compliment each other perfectly and are intimately linked. Whether through manufacturing, ports or rail, the bottom line is that we exist to deliver freight reliably, to each and every one of our stakeholders. We are the major player in the Southern African transport and logistics arena and are building on existing corridors and clusters, to exploit the synergy between port and rail and create valuable business opportunities that extend far beyond the shorelines and borders of the country.”

WWW.TRANSNET.NET

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LUFIL PACKAGING

Sustainable, Recyclable Packaging Solutions in the Bag PRODUCTION: Timothy Reeder

Lufil Packaging supplies a broad and varied range of industry sectors, from industrial and government through to healthcare and pharmaceutical, but has stablished itself as a market leader in the fast-food or quick service restaurant (QSR) segment. With South Africa finally embracing the shift away from plastic, it falls to Lufil to lead the way in sustainable packaging across its ever-growing range of markets and products. www.enterprise-africa.net / 87

INDUSTRY FOCUS: PACKAGING

//

Established more than 30 years ago and originally named after its founder’s son, Luis Filipe, Lufil Packaging was acquired in 2004

by Bidvest and now operates under Bidvest Packaging, a division of Bidvest Data, Print & Packaging (BDPP) and part of Bidvest Paperplus.

The international services, trading and distribution company BDPP operates on four continents and employs 104,000 people worldwide, but with roots which remain staunchly South African. Created from companies previously part of other Bidvest divisional structures, BDPP has made a number of strategic acquisitions that have positioned it among southern Africa’s leading suppliers of printing, data, packaging and labelling solutions.

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// IN SOUTH AFRICA WE HAVE ESTABLISHED OURSELVES AS A LEADING SUPPLIER TO QUICK SERVICE RESTAURANTS // STRATEGIC MARKETS Now one of South Africa’s leading manufacturers of printed and plain paper bags and associated packaging products, Lufil has conquered a number of new territories of its own in its three decades of expansion, according to Commercial Executive Stephen Weston. “We have nearly 250 full-time employees, when factoring in our factory, warehouse and head office at Linbro Business Park in Sandton, Gauteng, and distribution centres in Cape Town, Pinetown and Port Elizabeth. This footprint ensures

that we have a strong national presence, servicing customers throughout the country.”

Lufil supplies a diverse and varied range of industry sectors, from industrial and government through to healthcare and pharmaceutical. “Our core business is anything that pertains to paper conversion and flexible packaging, such as bags, sheets and napkins,” says Weston. “Our markets are very strategic, and in South Africa we have established ourselves as a leading supplier to quick service restaurants (QSR) and deliver to home restaurants.”

Lufil’s own growth has followed that of one of South Africa’s thriving industries, which has experienced a sudden surge in popularity and importance. South Africa is the largest foodservice market in the subSaharan Africa with a large and highly competitive hospitality industry, and its fast food market size was valued at $2.7 billion in 2018, expected to reach $4.9 billion by 2026 to register a CAGR of 7.9%.

“The fast food and QSR sectors account for around 60% of our business, adding all of the paper bags, sheets and napkins together, which a lot of the brands we supply into also make use of,” Weston notes. “However, as more and more brands are deciding to cease the use of plastic bags and containers we are seeing phenomenal growth within the retail sector, too.

We started with Checkers, and have now developed packaging for their e-commerce platform. Their use of our bags to deliver their 60-minute grocery delivery service has been a huge coup for us.”

A number of suppliers have been integral to broadening unlocking these opportunities for Lufil, Weston is keen to stress. “Sappi South Africa has been

LUFIL PACKAGING

WE ARE INTERLAND DISTRIBUTION

Interland Distribution specialises in linehaul distribution throughout South Africa and we pride ourselves on customer service and reliability

www.interlandsa.co.za solutions@interlandsa.co.za

one of our key partners,” he states, of a giant with nearly a century of serving South African consumers with locally produced paper behind it. “They open up to us a vast range of different products, and their international footprint is a massive boon, as they can access certain grades of paper which are not available here in South Africa.

// WE ARE COMMITTED TO PRESERVING OUR ENVIRONMENT, WHICH IS WHY ALL OF OUR PRODUCTS ARE RECYCLABLE AND COMPOSTABLE //

“Mpact is another integral supplier, one of the leading paper and plastics packaging manufacturing businesses in southern Africa which also partners with us, providing the paper in our Checkers shops.” Crucially, Mpact is also southern Africa’s leading recycler of recovered paper and plastic aligning perfectly with Lufil’s own unwavering environmental focus.

While QSR and retail might be considered Lufil’s core, specialist markets, these are diversifying all the time, says Weston. “Even the sectors within retail are still growing,” he describes, “for example in supplying products to be used in delis, like chicken bags and wraps. In an entirely new move for us, as well, we now produce a seasonal bag for agriculture, which fits over corn in the field to prevent cross-pollination

during growth. This is a very novel and exciting development for us, and brings us orders all through the rainy season from research farms wishing to retain seed in their operations.”

In addition to all of these key South African markets even the pharmaceutical sector is covered, Weston adds, with a suite of carry-out and shopping bags employed by some of the country’s leading players. The wrapped toothpick represents a further development and branching out for Lufil, and, like the napkins and sheets in the QSR business, is another complementary element to its existing loyal users.

“This is a category that we inherited from another Bidvest sister companies a couple of years ago,” he relays. “The process sees us sterilise and individually wrap the toothpicks on site, and we are then able to sell these

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INDUSTRY FOCUS: PACKAGING

on to brands we currently supply. This is one of a number of unusual things that we do, but it works for us because although the manufacturing process is slightly different, ultimately the delivery point is that same, existing customer - we already have a truck distributing to Nando’s, for example, and this forms an ideal bolt-on.”

SUSTAINABILITY Historically, sectors like retail and fast food, while affording Lufil marvellous opportunities to diversify and grow, are tarnished with a reputation for excess waste, one that neither has been able to shed fully. The lingering image is of a South African urban landscape almost defined by torn

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// AS SOUTH AFRICA’S LEADING SUPPLIER OF PAPER BAGS, SUSTAINABILITY IS ABSOLUTELY KEY FOR US // and shredded plastic shopping bags blocking gutters and clinging to fences and building walls, a problem only partially addressed by the introduction of thicker plastic bags at all shopping outlets. The only way to successfully combat the scourge of plastic bags is to stop using them, and Lufil is leading the sustainable charge in its key markets.

“As South Africa’s leading supplier of paper bags, sustainability is absolutely key for us,” asserts Weston.

“We offer a comprehensive range of environmentally-friendly solutions, and many large national retailers now supply our range of paper shoppers over plastic alternatives.

“The mills from which we procure our material are all Forest Stewardship Council (FSC)-accredited,” he continues, whose objective it is to promote responsible management of the word’s forests that is environmentally appropriate, socially beneficial and economically viable.

LUFIL PACKAGING

SOUTH AFRICAN ADHESIVES (PTY) LTD t/a Chemsol (SA) Adhesives 031 465 0906 P.O. BOX 889, UMHLALI, RSA, 4390 orders@chemsol.co.za, admin@chemsol.co.za www.saadhesives.co.za www.intercol.nl

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Specialist in Water Borne Adhesives for paper & packaging.

FDA approved products

Co-operating Dutch company

Ms Premi Subramany - 083 787 6945 // WE HAVE A STRONG NATIONAL PRESENCE, SERVICING CUSTOMERS THROUGHOUT THE COUNTRY // Environmentally appropriate forest management ensures that the harvest of timber and non-timber products maintains the forest’s biodiversity, productivity, and ecological processes, while socially beneficial forest management helps both local people and society as a whole to enjoy the long-term benefits.

“It ensures that no indigenous forestry or trees are chopped down in order to produce paper,” Weston says of its application in Lufil’s modus operandi, “and that that which is used is renewable and sustainable. Ensuring that it is in place in an unbending

commitment for us, and this is also true of recyclability and compostability across our product range.

“We are committed to preserving our environment, which is why all of our products are recyclable and compostable.” It feels very much like change might be afoot, from what Weston details of what is taking place in the country. “For the first time ever in South Africa we are going through a process which sees government involved with what actually happens to the end product,” he tells us. “As a result, companies will be billed, or pay a levy, according to the type of product that is going into landfill or being recycled.

“It has taken a very long time for people in South Africa to make the change to paper from any alternative,” Weston furthers, as the country follows so many others in Africa which have already abandoned single-use plastic. “Paper is clearly and proven a markedly better environmental

option, so we are hopeful that this renewed assistance from government will only accelerate this shift.

“People and brands, and especially top brands, are now making a conscious decision to change, which is obviously good for us but also for the whole country,” Weston summarises of this incredibly exciting time to be a sustainable leader in an industry undergoing great transformation. “We are proud of our track record, and in the future we will continue to implement policies that have a positive impact on the environment as our paper packaging solutions play an increasingly vital role in so many of the country’s most vital industries.”

WWW.LUFIL.CO.ZA

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TRSS

Trust the Best

to Secure Your World PRODUCTION: Joe Forshaw

The TRSS motto of Stronger, Safer, Together has never been more important. Right now, a wave of criminal threats blights the country and it is essential to partner with a local security business that can provide knowledge and experience when protecting your home and workplace. Director Brett Fisher tells Enterprise Africa more about the capabilities of this envied security organisation.

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INDUSTRY FOCUS: SECURITY

//

South Africa, unfortunately, remains a hotbed for crime.

High unemployment drives desperation, and a police force that is much too small to manage alone is supplemented by an enormous private security industry. According to the Private Security Industry Regulatory Authority (PSiRA), more than 9000 companies employ some 600,000 people, with two million registered as qualified security agents in a country where the police stand with numbers of less than 150,000. The situation has allowed for the growth of monolithic companies, and attracted interest from around the world with major global conglomerates setting up shop in SA to support security interests of international organisations active in one of Africa’s largest economies.

But with this has also come distrust. Allegations of security companies operating outside of their mandate – greying the lawfulness of their activity, acting above the police rather than in partnership. It’s a

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complicated and unique problem.

The public and private sector are working hard to improve the situation, but clearly it remains imperative to partner with a knowledgeable, experienced, local player, who understands conditions on the ground, and has the ability to deal with even the most severe security threats. According to Brett Fisher, Director at Johannesburg-based TRSS – a leading security company in both technical and manpower solutions – crime remains one of largest fear factors for all in the country.

“Crime is traumatising, when people break into your home or business it has a big impact on people,” he tells Enterprise Africa.

“We have been around for more than 20 years and we have learned the lessons. It has taken a long time and a lot of hard work to get to where we are now.

“In this industry, it’s always long days and long nights but we are doing ok and making progress.”

However, this reassurance comes alongside warning – the pandemic and the recent unrest has fuelled crime activity in the country as people’s economic status has been dashed.

“As soon as the lockdown softened through level four and level three, we immediately saw criminals return with a vengeance. It became very difficult and we saw crime increase.

It’s an obvious factor as so many businesses have taken such a knock.

Many businesses have closed, many

// WE HAD HOTELS WHERE WE RAN MASSIVE GUARDING OPERATIONS WHO JUST CLOSED DOWN OVERNIGHT – THAT KIND OF THING DOES AFFECT US //

TRSS

// WE ARE A COMPANY THAT BELIEVES IN MANPOWER AND TECHNOLOGY // have lost their jobs, and many are now unemployed. That, in turn, leads more people to crime and people become more desperate, understandably. The increase has been drastic, and we are catching and arresting more people but they are back on the street again very quickly,” Fisher laments.

TURNKEY OFFERING Whether it’s home or business – SME or national powerhouse – TRSS has a solution for all, developed over more than two decades.

The company’s ethos is about stopping crime before it happens, acting as a deterrent by employing both human and technological assets on site. This combination is often overlooked by many in the industry despite its obvious results.

TRSS splits its services across four key divisions: Guarding, Reaction, Technical and Special Operations.

“With guarding, we are in commercial, industrial and residential,” explains Fisher. “Commercial is anything from blue-chip companies to major hotels to shopping centres or independent businesses. Residential is where we look after big estates with big infrastructure and control rooms, or a smaller estate with around 20 houses but in need of 24-hour guards. Industrial is where we look after trucking companies or logistics businesses.”

The physical presence of a manned guarding unit, around a residential area or business, is one of the strongest deterrents for criminals planning burglaries or breaking and entering. Being able to see Safety and Security Sector Education and Training Authority (SASSETA)-trained guards, fully uniformed, with clear back up available is enough to put off even the most hardened criminals.

Should further assistance be required, TRSS’s Reaction team, or armed response unit, is called in. This is a highly trained team with advanced

weaponry skills and experience in dangerous situations. Recently, in Sundowner, north of Johannesburg, TRSS reaction officers spotted a break in attempt and gave chase. Suspects were apprehended and found to be in possession of tools. The suspects and the tools were handed over to SAPS and the home was protected.

“Armed response is also split into commercial, industrial and residential.

Armed response is to back up our guards should there be an emergency.

Our guards are equipped with panic buttons and in South Africa you have electric fences which are all linked to our armed response teams. Should someone try and tamper with the electric fence or a guard push a panic alarm, a signal will go to our control

room who will dispatch an armed response unit.

“On the residential side, we can manage just one house through panic buttons and other technology, but we also have what we call ‘special projects’ where we look after an estate within a suburb, where certain residents form a committee and develop a more visible and formal security presence.

It’s a combination of guarding, armed response and technology which includes CCTV and automatic number plate recognition.”

This is where the company’s expert Technical team comes into play.

Delivering and installing industryleading technology - including cameras, electric fencing, alarm systems, beams and mechanics in homes, boom gates,

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www.enterprise-africa.net / 95

INDUSTRY FOCUS: SECURITY

garage motors and much more – TRSS again goes one step further than others by keeping this ability inhouse, controlling the security of its client in a wholistic fashion.

“We have a large facility where we do a lot of steel work and if you want a security gate manufactured, we have the ability to provide a turnkey solution to our clients. That is something that many other companies do not have.

Our clients love that as they can deal with one person and hold one person accountable,” says Fisher.

// AS SOON AS THE LOCKDOWN SOFTENED THROUGH LEVEL FOUR AND LEVEL THREE, WE IMMEDIATELY SAW CRIMINALS RETURN WITH A VENGEANCE //

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Alongside these offerings comes the TRSS SWAT team – an industryleading group of highly-trained individuals, often from military or policing background, with extensive experience in tactical operations and life-threatening situations. This is ultimate crime barrier and another area where TRSS towers over competition.

“They have access to the latest technology – including drones and thermal imaging cameras – and serious weapons. They have the ability to support our guards and armed response teams if they get into a situation where they are faced with serious resistance. They have high level knowledge around how to get in and out of buildings very quickly, how to track criminals through rivers or veld, they are a heavily armed, and they have access to leading rescue equipment. That is a big comfort to our guards and reaction officers as they can get into situations where four hijackers will arrive at a gate, and they need to know they have back up,” details Fisher.

SECURE INVESTMENT Recently, TRSS finalised investment into a new control room. This secure and vital facility adds to existing capability and brings further capacity to the team.

“We have more than 2500 people and 130 vehicles on the road. Security is very important, and it is important to have 100% uptime. When you are sitting at home and you push your panic button, you don’t want to hear any excuses – the security must arrive,” asserts Fisher.

“Your control room is the hub and heart of your company,” he adds. “It’s where people are making decisions about deployment – can you imagine if criminals broke in? It would be chaos, so we ensure our control rooms are super secure. Our newest is a 120 m2 control room with bullet proof glass and our clients, especially corporate clients, like to tour our facilities. If they are a bank or a hotel, they want to come here and ensure what you’re telling them over a call is true.”

This is the second control room

TRSS

// THEY HAVE ACCESS TO THE LATEST TECHNOLOGY – INCLUDING DRONES AND THERMAL IMAGING CAMERAS – AND SERIOUS WEAPONS // for TRSS and is certified by the South African Intruder Detection Services Association (SAIDSA). “That means they are bomb proof and no one can break in. People can even survive in there for a few days if they need to,” states Fisher.

Further confirmation that the company is dedicated to the unequivocal and constant uptime of not only its manpower and technology, but also its vehicles comes as Fisher details more about the TRSS service centre and fuel depot.

“We have a full repair centre where we can service, maintain and manage vehicles. Cars regularly need servicing for many reasons and we have the ability to bring cars in and repair, and use a spare vehicle in the meantime.

The result is 100% uptime for the client and a car repaired by us, so we know it’s been done right but with a quick turnaround time.

“We also have our own fuel depot which keeps us running even if fuel tankers cannot get to forecourts. Our vehicles always have fuel and we manage everything as a company rather than outsourcing small bits here and there.”

The differentiators afford TRSS the ability to service clients effectively, without interruption, across Gauteng.

Because of the company’s success in and around Johannesburg, Fisher has set sets firmly on national expansion as opportunities begin to emerge and crime continues to thrive in South Africa.

“We are Gauteng-based and from a guarding point of view we operate across the whole province. We are yet to roll out properly nationally but we do have some sites that we look after on a national basis. Our plans are certainly to go national, and that means covering Cape Town, Durban, Gqeberha and other big cities in South Africa. We are looking at that for possibly as soon as next year. Right now, we are very focussed on Gauteng and our armed response footprint is active mostly in the northern suburbs of Gauteng,” he says.

COVID IMPACT The pandemic impacted the security industry like no other. Some businesses thrived, others disappeared. Many lost jobs, and many bulked up their personal protection. SAPS reported an initial reduction in crime rates as the strict lockdowns were implemented, followed by harsh upswings as the rules eased.

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INDUSTRY FOCUS: SECURITY

“With the first hard lockdown, we were part of the essential services allowed to continue operating,” says Fisher. “It was great from a security point of view, as nobody was allowed to be out and if anyone was out walking or in a vehicle, they would be questioned quickly. The result was that crime reduced dramatically. We were using our vehicles to assist with food parcels and food deliveries and helping those less fortunate. As much as it was a period of doom and gloom, it was nice from a security point of view as there was less crime.”

The company had to adjust its

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patterns to be compliant, but, overall, it was business as usual for TRSS which was required throughout lockdown.

“We had strict Covid measures within the business and people who could work from home did that. But we are an operations-focussed business which means we have to have people coming to check equipment and run exercises. Not a major amount changed for us and we managed to achieve strong growth a good sales figures while people were reaching out for a reputable company with backing and firepower, especially after the riots and looting.

Smaller security companies were simply

unable to back people up to the right level at that point,” says Fisher.

Unfortunately, the company did experience Covid first hand, with a number of staff contracting the virus and many having to isolate while any symptoms subsided. “That is still happening to a certain degree,” admits Fisher. “Our vaccine rollout has been slow in South Africa but have been trying to educate our staff and ask them to get their vaccines when they can.”

Thankfully, there were no issues with capacity and supply, and all areas and sites protected by TRSS remained resilient over the past 18 months.

TRSS

Some customers were impacted, and there were isolated cases of concern with contracts, as the company saw unemployment once again become the scourge of the nation, but the TRSS culture of family means putting staff at the forefront of planning at all times.

“People have less income and so cannot afford security. Yes, the privileged have security, but if you have a household where earners have lost jobs, how can you expect them to pay for armed response,” Fisher questions. “We had hotels where we ran massive guarding operations who just closed down overnight – that kind

of thing does affect us. We do have a massive infrastructure but we paid every single staff member a full salary all the way through,” he adds.

With the ill-effects of the crime epidemic in South Africa still clear for all to see, and without an end in sight that doesn’t involved the private security sector, it is crucial for companies and residents to choose a security partner with a glowing reputation and experience in dealing with the scope of threats that besiege the country. TRSS is proactive. It is fast and efficient. And it is proven when it comes to securing its clients assets.

“We are a company that believes in manpower and technology. We combine both so that when our guards are on site, they have everything they need, alongside our control room, to be proactive rather than reactive. It’s so important to be proactive in security.

We send teams out to stop crime before it happens and that is really what people want,” Fisher concludes.

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OUTSURANCE

Out-of-this-World Service

When You Need It Most PRODUCTION: William Denstone

For more than two decades, OUTsurance has provided innovative, value-for-money insurance products developed with the needs of South Africans at the centre. “Disciplined underwriting and risk selection, great customer service and deep technology and data skills - these are our key differentiators,” sets out CEO Danie Matthee, and it is working, with growth, strength and recognition all continuing to come OUTsurance’s way. www.enterprise-africa.net / 101

INDUSTRY FOCUS: INSURANCE

//

Today comprising some 5000 employees and South Africa’s third-largest insurance group, OUTsurance was launched in 1998 as a wholly-owned subsidiary of Rand Merchant Investment Holdings (RMI Holdings), a South African based financial services investment holding company. A main campus in Centurion, Pretoria is staffed by nearly 4000, with the remainder spread across offices in the likes of Cape Town, Johannesburg, Durban and Gqeberha.

“From an African perspective,” begins CEO Danie Matthee, “our focus remains very much on the

// WE ARE THE LARGEST DIRECT INSURER IN SOUTH AFRICA BY SOME MARGIN //

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South African markets, where we still consider that we have very strong growth opportunities.” This has not prevented this ambitious, young company from establishing subsidiaries in the likes of Namibia, and the 2008 launch of Youi also made OUTsurance the first African company to successfully inaugurate an insurance business in Australia.

Significantly expanding its scope since formation, OUTsurance’s offering now encompasses the full breadth of short and long-term insurance, as well as investment products, to individual and corporate customers. In 2010, the group also launched OUTsurance Life, to enable it to offer fully underwrite life insurance products in South Africa, as well as funeral and endowment products.

GROWTH DESPITE DISRUPTION A crisis such as Covid-19 affects all business sectors, but for the insurance industry there have been some

unique challenges to broach, from employee and business continuity issues to client service considerations to the financial outlook. Amid intermittent lockdowns, anxiety and stress surrounding the virus and tough economic circumstances Matthee details how the group has remained both strong and, impressively, growing.

“We have been really fortunate as a business to have not had to let anyone go during this period of time,” he says. “In fact, we have grown our headcount by close to 800 people in net terms over the last 18 months.

“From a consumer perspective there has been a concerted trend of being cost-conscious and downbuying, particularly when it comes to vehicle insurance, but overall, barring these visible consumer stresses, we are really proud of how we have managed to navigate Covid-19. Not only from a staff point of view, evidenced in our increased personnel numbers, but

OUTSURANCE

whether with premium relief, or claims payments for business interruption during hard lockdowns, for example, we have offered incredible support to our customers when they have needed us most.”

Assistance which has gone beyond the borders of the business, OUTsurance also moved nearinstantaneously to commit R102 million in March 2020 to help in South Africa’s time of greatest need, in support of clients, service providers, the healthcare sector and the Solidarity Response Fund. “With decisive leadership, togetherness and

// WE HAVE OFFERED INCREDIBLE SUPPORT TO OUR CUSTOMERS WHEN THEY HAVE NEEDED US MOST //

community support, we will emerge stronger,” Matthee said at the time.

“Of paramount importance to us is the safety and well-being of our staff and partners who work with us, while making sure that our clients are assisted. As a major South African financial services company, we have a social responsibility to contribute to the fight against this debilitating virus and its devastating economic impact.”

Then followed in July of this year another vital operation under OUTsurance’s ‘Staff Helping SA OUT’ banner, seeing it join the RebuildSA movement by donating more than 60 tons of food to riot-stricken areas in KwaZulu-Natal. “This is a time where we have to join hands and help wherever we can”, explained Matthee.

“We’re always looking for ways to uplift those in need and create social change. OUTsurance is a special place to work and is full of exceptionally caring people.”

SERVICE SETS IT APART “The business is in good shape in the face of enormous obstacles and tragedy,” Matthee is able to relate, “and to have been able to continue to focus on growth, and on disciplined underwriting and cost management, without the need to downscale our staff or affect anybody’s salary negatively is something from which we draw real pride.”

In an extremely competitive and ever-changing marketplace, filled to the brim with competent competitors, there is one factor that he feels is of paramount importance to keeping OUTsurance at the top. “The enduring competitive advantage that we retain is the ability to offer our customers great value for money, backed up by fantastic expertise and care,” he rounds up. “We think that the quality of our service is a significant differentiator in this tough field.”

Continues on page 106

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THESL: IMPROVING LIVES THROUGH EFFORTLESS AND FAIR CONTENTS CLAIMS “With our range of trusted products and solutions, we automate the replacement process as much as possible to ensure that claims are settled as quickly and efficiently as possible” Thesl is a leading insurance industry partner, delivering claims processing and settlement so that positivity can be returned to negative situations.

Possessions are broken, lost and stolen – that’s life but that does not have to be the end of the story.

Thesl, which stands ‘For The Silver Lining’, aiming to be the good in a bad situation, works with insurance providers, including OUTsurance, to ensure the claims process is efficient, effective, and fast.

By utilising best-in-class technology, Thesl can, often instantaneously, evaluate and act on claims to ensure the best possible outcomes for policyholders.

“We’ve been working with OUTsurance for the past five years,” explains Thesl CEO Craig Rawraway. “We facilitate the quantification and settlement of household contents claims. We provide the ability to value a claim and then settle it on behalf of the policyholder.

“Typically, when an item is lost, broken or stolen, the policyholder contacts OUTsurance to lodge their claim and they would, where required, ask us to assist with identifying the item of loss correctly, get best pricing from multiple reputable suppliers, and to potentially facilitate replacement for the policyholder in the most seamless way possible.”

With more than a century of combined insurance industry experience behind it, the team at Thesl are now looking forward, with a view to incorporating technology to ensure an even more efficient delivery for end-users.

“In the near future, it will be common practise for a claimant to use a mobile device to lodge their claim which we can, through our data set and algorithms, quantify instantaneously and automatically issue a buying voucher or a virtual card to spend at a store of their choice. It’s about streamlining and minimising the input so that the claim is settled as quickly and efficiently as possible,” says Rawraway.

Offering solutions which includes TenderSystem to quantify claims, as well as settlement mechanisms such as ClaimsCard, mobile vouchers and purchase orders, efficiency is the end-goal for this business – formed to bring ease, simplicity and automation to the claims process. Right now, the company is close to finalising the build of a fully automated claims process, removing multiple interventions where possible and saving even more time and money for insurers.

“We are busy piloting parts of that process” details Rawraway, “and have built a new system to ensure our data engines and data mapping is accurate. When a claim comes in, we must be able to accurately identify an item, which is mapped against our extensive product data set built up over many years. Once identified, a succession mapping process ensures the policyholder is provided with the best available replacement option. Our system then maps this to live pricing from multiple feeds and recycle quotes from various suppliers so that we can give instantaneous responses. This will reduce turnaround times and increase efficiencies, ultimately lowering the cost of claims.”

Offered on a Software as a Service (SaaS) model, Thesl’s service relieves pressure on handlers when processing complex and, sometimes, high-value and multiple item claims allowing them to offer better service to the claimant.

“We have a great working relationship with OUTsurance as we are both innovators,” says Rawraway.

“Our goal is to get the best result for our client. They, like us, are a data driven company, and therefore we focus on providing them relevant data sets, which facilitates providing the most value adding replacement solution for their client base.”

By constantly rolling out innovative solutions, Thesl continues to achieve its goal of leveraging product data to promote efficiency and improve situations for policyholders and all stakeholders across the claims process.

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IMPROVING LIVES THROUGH EFFORTLESS AND FAIR CONTENT CLAIMS EVERY “AAARGH” SITUATION NEEDS A SILVER LINING It is said that every cloud has a silver lining; even the darkest clouds on the gloomiest days hold the shimmer of hope and possibility. Thesl stands for “The Silver Lining” as we want to be the good in the bad situation that clients find themselves in. We are a financial technology company that knows that when you focus on possibilities, you’ll have more opportunities.

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HAPPY CLIENTS

EFFICIENT PROCESSES

INDUSTRY FOCUS: INSURANCE

Continued from page 103 The 2020 Consumer Satisfaction Index (SAcsi) for short-term insurance polled 2600 customers across major South African during the second half of 2020, with the results corroborating the perception of what Consulta calls, ‘an industry where competition between players is fierce, with the difference between the top four scoring brands on customer satisfaction score barely more than a single index point’.

“For the first time in the history of the SAcsi, the Short-term Insurance SAcsi score overtook the Banking SAcsi score, which has traditionally

// OUTSURANCE IS A SPECIAL PLACE TO WORK AND IS FULL OF EXCEPTIONALLY CARING PEOPLE // 106 / www.enterprise-africa.net

performed at a very high level,” it explained. OUTsurance was pitted against true industry heavyweights such as Auto & General, Discovery, Momentum, Old Mutual and Sanlam, and, with a score of 82.3, succeeded in scooping the top spot in the overall customer satisfaction measure. It is unique among the swathes of companies also vying for the honour

in demonstrating consistent yearon-year improvement in its customer satisfaction score from 2016, finally cementing the leading position in 2020.

Not only ranked number one for customer satisfaction out of all the major short-term insurers, adds Matthee, OUTsurance’s approach also incurs very few grumbles from its customers. “We are fortunate in South

OUTSURANCE

// WE THINK THAT THE QUALITY OF OUR SERVICE IS A SIGNIFICANT DIFFERENTIATOR IN THIS TOUGH FIELD // Africa to have the ombudsman for short-term insurance, for example, and for the last six or seven years consecutively we have had the fewest complaints referred by consumers compared to our peers. Our service is top-rated by the readers of numerous newspapers, including The Star and City Press, and we have won numerous awards relating to our service delivery.

“This is truly part of our DNA, and embedded into everything that we do,” Matthee furthers, and is backed by deep technology skills and capabilities. “We already consider ourselves something of an

Insurtech,” he details, “and the tech that we employ in our business is all self-built, proprietary and built to serve a specific purpose. We are able to construct processes and systems that allow us to give customers better services, and use customer feedback to continuously improve.

“Looking at our business mix,” Matthee summarises, “we are predominantly a largely personal lines motor and household insurer which provides in the region of 70% of our premium income, and this makes us the largest direct insurer in South Africa by some margin.” Some of the most glaring opportunities looking forward, he adds, are those that OUTsurance has identified in the commercial insurance space.

“We already have a great business here, made even stronger by our heavy investment over the last three years to build face-to-face distribution. We recognised that often SMEs need someone to come in and really understand how their

business works, and offer a much less commoditised product as a result.

This is a big area of growth and opportunity for us in the next three to five years,” he states.

“We have just over a million existing clients to take care of, however,” Matthee stresses, “and this existing business will continue to receive the primary focus that it merits.

“After all, we are in an industry of trust,” Matthee concludes, “and it is essential that we give the consumer confidence in the economic value we can add by protecting their assets and balance sheets through insurance.

In our sphere there is no tangible product in return for the payment of a premium, essentially we sell people a promise. What they can rely on is we are a committed, trusted and deeply skilled organisation that is there for you when you need us most.”

WWW.OUTSURANCE.CO.ZA

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AVBOB

Incomparable Care and Compassion

in Times of Covid and Beyond PRODUCTION: Timothy Reeder

One of South Africa’s best-known and most trusted funeral service providers, AVBOB exists to ensure that the lives of loved ones are honoured with special nurturing, sensitivity and care. The pandemic has ripped through the country and torn apart families; what AVBOB has been able to do, explains CEO Carl van der Riet, is take the spirit of care and compassion cultivated throughout its unique lifetime, stand at the focal point of the trauma and help move people through the devastation and grief.

//

Established in Bloemfontein in 1918, AVBOB has grown over a century into Africa’s largest Mutual Assurance Society, with around 7000 staff providing a one-stop shop for funeral insurance and funeral service.

Partly due to its relative affordability, funeral cover has an exceptionally high penetration rate, and of the approximately 55 million population in South Africa, currently more than 7.6 million lives are insured by AVBOB.

// AVBOB AS A MUTUAL INSURANCE SOCIETY IS THE PACESETTER IN THE FUNERAL INDUSTRY // 108 / www.enterprise-africa.net

“AVBOB as a mutual insurance society is the pacesetter in the funeral industry,” the group states. Across its three operating divisions it provides a comprehensive range of funeral products and services to meet the wide-ranging needs in the market, a full funeral and cremation service via a network of highly-trained staff and a factory in excess of 14,000m² where an

INDUSTRY FOCUS: INSURANCE

extensive range of coffins, wreaths and fittings is manufactured.

Of course, death and the associated funeral is not something one wants to ponder at length or often. However, even in circumstances not akin to those we have seen since March 2020, in reality every person will at some stage go through this process, and in South Arica a high mortality rate together with the level of importance placed on funerals by the majority of the population, have combined to give rise to a large funeral services industry.

The sub-sectors within the industry are substantial too, among them a vibrant funeral supplies sector provides

// WE PROVIDE A MECHANISM FOR FAMILIES TO PROCESS GRIEF, AND TO TRANSITION THROUGH THAT EXPERIENCE // 110 / www.enterprise-africa.net

such items as family cars, flowers, catering and clothing. The funeral service market operates on a national level as well as regional and local levels.

Elaborate burials are still a significant status symbol to many in South Africa, spawning a funeral insurance industry valued at somewhere between R7.5bn and R10bn per annum. A funeral can be a hugely expensive exercise - costing anything from R12,000 to R100,000 - and as such it is today the most popular insurance cover in South Africa.

UNIQUE IN APPROACH “Ours is the largest funeral service operation in the country,” AVBOB CEO, Carl van der Riet, states. “We are national, with around 350 branches across the country targeting low, middle- and high income markets.

More than simply the biggest, being an integrated insurance and funeral service operator makes us truly unique in the country. Where other insurers stop at the point of a claim, that’s where our full-service kicks in and we fulfil the complete need of our clients.”

“The second way in which we are unique is that we are a mutual,” van der Riet adds. “In South Africa, contrary to the UK or Europe, this is really rather rare; there remain only a very small number of mutual insurers in South Africa. With it comes the absence of shareholders - instead we are entirely owned by our members, the policyholders.

“All of the excess profits generated from operations and investments, are returned to the policyholders through special bonuses and free funeral benefits. This is a unique model in South Africa and it makes our goals very focused and aligned; we do not have split loyalties between extracting value for shareholders and trying to provide value to customers - everything is focused on the policyholders.”

The approach has been crucial in shaping the company, van der Riet stresses. “Our mutual ethos pervades everything that we do.”

This ethos has another important knock-on effect, he goes on. “We also have a very important corporate social

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INDUSTRY FOCUS: INSURANCE

investment (CSI) drive, whereby we believe that we are not here only for our customers, although paramount, but also for the communities that we serve. We have a range of initiatives that we are pursuing, from enterprise and supplier development through to active investments in education.

“This even extends to more unusual, cultural programmes, such as our flagship national poetry competition that we run every year in 11 languages, providing an all-important, powerful platform for people to express themselves in their mother tongue.”

Shipping containers also become fully-fledged libraries due to this highly socially-aware, community-conscious spirit, complete with books, computers, solar panels and ventilation. To date, AVBOB has delivered 57 libraries to underprivileged schools. “The

whole ethos behind our significant investments into a wide range of projects and programmes is that we are owned by our members, who are part of these communities. This drives our core aim - to allow people to participate in the economic benefits from the endeavours that we undertake within their communities.”

CRUCIAL SUPPORT Always crucial to its members, the supportive, caring and compassionate service AVBOB renders has been utterly invaluable amid the devastation of the pandemic and the toll of bereavements it has left in its wake. “It has been the most incredibly tough year,” says van der Riet. “The convergence of all the various factors was, however, a perfect reminder of why it is we are in this business, and brought home a real sense of purpose.

“I often say that it is at times of real stress that character is truly revealed, and for me, as a business and as a country we have gone through a huge amount of trauma which has evidenced the real character and purpose of the company.

“Funeral services, as a sector, is still often misunderstood,” he adds. “People envisage the men with tall top hats and dark coats mournfully presiding over the ceremony. This is not even close to accurate - what we actually provide is a mechanism for families to process grief, and to healthily transition through that experience, which can be agonisingly painful.

“As well as the practical side, we offer the advice people solicit, the counselling where required and even the mediation in family disputes which do arise; we help people to

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AVBOB

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come to terms with bereavement, which then leads to closure and allows people to move on in their life. What we do, helps people to heal and move forward and this is our true value.”

AVBOB is well-versed in adversity: its formation came about at the same time as swathes of soldiers bringing back Spanish Flu at the end of the First World War, one of the worst viral epidemics of modern times, and the ensuing wave of deaths. The culture of the organisation and its deeply

// I OFTEN SAY THAT IT IS AT TIMES OF REAL STRESS THAT CHARACTER IS TRULY REVEALED //

ingrained principles allow it to stand firm and resolute among the most intense adversity, van der Riet says.

“Over time, and almost unnoticed, people are made to feel like they belong, and part of the family. That results from the sense of commitment and belonging, and of integrity in what we stand for. This has been a key differentiator in our culture and among the people that we have in AVBOB.” Taking such good care of its people has paid real dividends, and as it moves out of these darkest of times, AVBOB will be able to gather together the strength and knowledge accrued over these trying months to bring comfort to many more people in their time of need. “In these extraordinary circumstances, not once did our staff complain, and we are very proud of

2021/10/06 16:05

what they have accomplished,” he closes. “Clearly we are growing, and have been stretched, but it seems that this increased market share is continuing and sustaining, rather than subsiding after the waves.

“We will endeavour to employ the best aspects of technology, but never to the detriment of the empathy for which we are known. Most important is to continue building our physical infrastructure to retain the human contact we value so highly. That is what family is, ultimately.”

WWW.AVBOB.CO.ZA

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DENNY MUSHROOMS

Marvel at South Africa’s Mushroom Mega-Growers PRODUCTION: Timothy Reeder

Packed full of antioxidants and selenium, brilliant for heart health and crammed with phytochemicals found to suppress breast and prostate cancer, mushrooms are the order of the day in South Africa. Denny has been the country’s household name expert grower for over 40 years across its three industry-leading farms and has no plans to deviate from leading the way in cultivation and promotion, according to Managing Executive Gerbrandt Rust.

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INDUSTRY FOCUS: AGRICULTURE

//

“Denny is the mushroom expert, and we are passionate about what we do,” neatly summates the mushroom monolith. This much is undeniable: its three farms produce half of the total mushroom consumption in South Africa, lovingly tended under perfect conditions to bring all the goodness of this vital vegetable to every South African.

Four decades of mergers, acquisitions and growth have produced this lasting, extremely well-known brand, popular among families and individuals alike in South Africa. “Every second mushroom eaten in South Africa is supplied by us,” Managing Executive Gerbrandt Rust proudly reveals. “Striving to produce the very best-quality has always been, and remains, very much our primary concern. Denny is such a household, familiar name, that it is almost a subconscious act for consumers to pick up one of our blue punnets ahead of any of the others. We stand out.”

Part of the Libstar group, one of the biggest house brand manufactures in South Africa, Denny lives by the Libstar values of customer centricity, accountability, partnerships and entrepreneurial spirit. “We value the input and efforts from our holding company

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Libstar which plays a big role in the success and future sustainability of Denny.

We at Libstar and Denny strive to enrich people’s daily lives,” Rust states.

Fittingly, Denny wares enjoy spots in the country’s prime outlets. “Top-end retail is the main sector Denny serves,” Rust adds, “which consists mainly of Woolworths, Pick n Pay, Spar and Checkers. We then supply a lot of fruit and veg sellers, as well as many restaurants looking for the very best in quality and freshness to then offer to patrons.”

Bringing to the table the largest and most extensive range of fresh white and brown mushrooms is Denny’s modus operandi, greatly aided, Rust explains, by its ability to fulfil the entire process from beginning to end. “We do things a little bit differently to the big players in the UK and the EU, whereby we handle the whole chain, take care of the whole chain, right through to the shop shelf. It is very much a vertical, integrated business, and has been throughout Denny’s existence.”

SUSTAINABLE SUSTENANCE “We have recently branched out to a secondary focus on value-added products such as meat alternatives and farm-based products,” Rust reveals. This initiative has fitted wholly with Denny’s leader in

// WE ARE LEADING THE MARKET IN SOUTH AFRICA IN TERMS OF YIELDS, PRICES AND HOW WE LOOK AFTER OUR STAFF // sustainability status in South Africa, an accolade which drives it to continually work to improve its processes and make them even kinder to the environment.

“The mushroom cycle is a very sustainable one,” Rust presents. “It allows us to remove all the waste produced on farms in wheat and maize production and take this to then form part of the substrate we make in order to feed and grow our mushrooms.

Afterwards, this is then ploughed back into the lands, creating a very sustainable and integrated cycle of which we are very proud.”

The intensity and intricacy of the mushroom-farming environment, a 24-7, 365-day endeavour for Rust and company, makes it difficult to take on projects or products away from mushrooms, he says. “Over the past two or three years,

INDUSTRY FOCUS: AGRICULTURE

however, this has really driven our focus on utilising every single piece of fibre that we produce on our farms.

“It has also led to the introduction of these new product offshoots, but also right down to the resourcefulness of supplying buckets of mushroom and brine to bio-manufacturers in South Africa, for example. There is a lot still for us to explore with what we currently have, before we will begin to look at diversifying on our farms.”

This is a collaborative effort from a company which has long lauded the power of its partnerships in bringing the mushroom to the fore in the country. “We also prefer to consider the top retailers who we supply as our partners, rather than just our clients, to build a sustainable future together with us for the mushroom category in South Africa.”

When he speaks of sustainability,

Gerbrandt Rust refers to more than environmental or agricultural practices - it is the health of the entire industry that Denny is working to safeguard. “We really invest in the industry and in South Africa through our people. We are always the first company to take graduates from university, and train them, and while many do end up going to our competition, I see this as a real source of pride. Denny was where they found their love of the game and of the industry.

“In the South African landscape there are so many people who started out at Denny and went on to find success going their own thing and on their own farms. On a regular basis we also run apprenticeships, or internships, and sponsor select candidates who are still studying to complete their degree or diploma, who then come to work for us and continue to grow with Denny.”

FUNGI-FOCUSED Rust can offer a rare insight into the nuances of the Denny operation, having himself been at the heart of the farming element before assuming his current post just over a year ago. “I started off running the biggest mushroom farm in Africa, in Gauteng, and then was appointed to this post.

“It brings such a different dynamic to the position if someone has actually worked on the farm; it allows you to understand the frustration of the people, what they need and the tools they require - you can put yourself in their shoes. It is a tough industry, and certainly isn’t for everyone,” he admits, “but as long as you have the backing of your team and they share the same vision and passion, then anything is possible.”

Moving forward it is not just Denny that Rust wants to grow and develop,

The Growers’ Dependable Supplier of Top-Quality Mushroom Spawn

SYLVAN AFRICA | w w w. s y l v a n i n c . c o m e AdminAfrica@SylvanInc.co.za t +27 12 665 2210 f +27 86 545 4142

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DENNY MUSHROOMS

// WE ARE ABLE TO THINK ON OUR FEET, REASSESS AND ADAPT VERY QUICKLY, WHICH GIVES US THE UPPER HAND IN THE MARKET // he explains; it is a far more holistic aim.

“In South Africa we remain something of a niche market. Even though a lot of people are buying mushrooms there is a still a big untapped section for us to embark on conquering, by going into rural areas, educating people and teaching them how to cook with this very nutritious, filling product.

“It is not just about putting our brand and our name out there; for us, it is much more about increasing overall mushroom consumption in South Africa. We would like to see it go from 150g per annum, per person, to double this or more, meaning higher demand and, inevitably, more opportunity in the sector leading to further expansion and job creation.”

Nutritious, delicious, capable of

lowering risks of cardiovascular diseases and cancer - it is little wonder that Denny does not foresee any great need to revolutionise its operations or offerings as it seeks another four decades of dominance. “There is a very specific recipe that works in the mushroom industry, and as far as possible we try not to meddle with that,” Rust states.

“In the market, though, you want to be unique, to stand out and to have the leverage over the competition, which is difficult because at our roots we have the two strains: white and brown, nothing more, and that keeps us thinking creatively and constantly refining what we do. It forces us to always be ahead of the curve of consumer behaviour and of where

the market is moving, and a lot of background work and discussion keeps us there.

“This means that we are able to think on our feet, reassess and adapt very quickly, which gives us the upper hand in the market, listening to our partners’ needs.

“We are leading the market in South Africa in terms of yields, prices and how we look after our staff,” concludes Rust.

“Our main drive now is to stick to the basic principles of mushrooms growing and our major investments will be in our own production, to replace everything and invest everything that we make back into our business and our production. We want to upgrade our facilities to a global standard to push us into our next 40 years of farming.”

WWW.DENNY.CO.ZA

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PPC, STRENGTH AND LONGEVITY INTO THE FUTURE The real threat of using sub-standard cement The cement industry is seen as a good indicator of a country’s economic growth as it is the key input material in infrastructure, development and much like the rest of the modern world, the foundation of South Africa is built on this premise. Yet, according to Njombo Lekula, Managing Director of PPC RSA, sub-standard cement products are threatening the built environment industry and placing South African lives at risk. Usage of sub-standard cement has various implications that may negatively affect the sustainability of buildings and structures thereby leading to increased repair or maintenance costs, injuries and fatalities due to structural failures or collapse.

During a normal market surveillance exercise whereby competitors’ products were all tested for comparison, PPC found that some products supplied by cement producers were substandard and warranted further investigation.

In an effort to protect the greater South African cement industry and consumer, PPC appointed, Beton-Lab, a South African National Accreditation System (SANAS) accredited independent laboratory in September 2017 to

physically purchase the bags themselves in order to maintain the chain of custody and assure no interference from any outside party.

Part of the process was to take photographs of each bag (front, side, back panels and bag weights) to verify Letter of Authority (LOA) numbers, cement type and strength class. The weights of the bags were checked and the EN strength testing in accordance with SANS 50197 for 2, 7 and 28 days was performed. The South African Bureau of Standards (SABS) prescribed uncertainty of measurement allowance of 2.5% was applied when analysing the resultant data. The results show the inability to produce a consistent quality product and thwarting of standards. Alan De Kock, MD of Beton-Lab says, “As an independent laboratory our work is tightly controlled, ensuring accurate data that is in no way influenced by outside parties.”

The report was recently released and the findings were shared with the SABS and the National Regulator for Compulsory Specifications (NRCS), showing continued nonperformance of the cements tested. According to Lekula, non-conformity of strength and weights of some products ranged from 11% to

73% of the sample set. “This failure to conform to local standards not only has an impact on the structural integrity of buildings, but also poses a threat to possible damage of property and even loss of life should the walls come tumbling down.”

It was also found that most of the sub-standard cement products carry the SABS mark. The SABS stamp is a mark of regulatory approval, instilling trust in the product being sold and, if used in accordance with the instructions, will result in a structure that is robust and safe.

strength before 28 days. The durability of mortar or concrete is primarily dictated by the amount and the strength performance of the cement that is used.

Retailers, builders and construction companies are also at risk of future legal action or loss of income as selling and using these substandard products can have a negative effect on the perception consumers have of their businesses and standards.

PPC.AFRICA | 0800 236 368

It takes up to 28 days for cement to develop strength and fly ash does not start developing

It takes up to

28 DAYS

1. Total samples tested

2. Cement products sold in retail

=274

=14

4. Amount of samples failed

5. One company failure rate

= 33%

= 73%

(total of all companies)

for cement to develop the strength as indicated on the bag.

3. Retesting Products

= 31 (23%)

Duration of test period ± 2 years