LIXIL
Eurosmart Bathroom
LIXIL
Making Luxury Lifestyles
A Reality in Africa PRODUCTION: Timothy Reeder
No longer mere functional spaces for cleaning and washing, or preparing food, LIXIL Africa takes two rooms of the house that often escape attention - the bathroom and kitchen - and transforms them into places of personal comfort, relaxation, and transformation. Recent months have brought new dawns and major investments for the pioneer of housing products, in its quest to deliver kitchen and bathroom offerings that solve real-life challenges for African consumers.
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“Everyone dreams of a better home,” sets out LIXIL Africa, and never has a truer word been spoken. We live in an age where image is everything, and the home is a vital cornerstone of identity. “At LIXIL Africa, we use the power of water to make bathroom and kitchen products that help make better homes a reality for everyone in Africa, today and in the future,” the company underlines. Drawing on a strong Japanese heritage, pioneering innovations come as a result of LIXIL Africa’s association with some of the most well-loved home-grown brands: Cobra, ISCA, Vaal Sanitaryware and Libra all appear on the LIXIL Africa roster, and each and every one has a long and distinguished heritage in South Africa. GROHE, Plexicor, and Apex complete the offering to LIXIL’s African consumers. “We believe bathrooms are not just functional spaces for cleaning and washing; they are places of
personal comfort, relaxation, and transformation. We see kitchens as more than just a necessity to fulfilling our appetites; they are spaces to unlock our inner creativity, curiosity, and joy.” It is not purely aesthetics with which LIXIL Africa concerns itself, however; it has one eye firmly fixed on sustainability as it seeks to make luxury available to all. “We are mindful that water is Africa’s scarcest and most precious natural resource, too,” the company makes clear. “That’s why we are continually searching for and creating solutions that allow us to do more with less, such as adapting the shape and design of our products to reduce water usage and protect the world we live in. “There is potential to do so much more, and our local brands are committed to bringing improved sanitation, better water efficiency, and the joy of careful design to diverse communities.”
GROHE DAWN ACQUISITION LIXIL Africa is the South Africa-based division of LIXIL, which makes water and housing products that touch the lives of more than a billion people around the world, every day. LIXIL Africa was born just two years ago through LIXIL’s acquisition of the remaining 49% of shares of Grohe Dawn Watertech Holdings Proprietary Limited (GDWT) from Distribution and Warehousing Network Limited (DAWN), for an aggregate amount of R324.5 million. For LIXIL, it was a key move in seeking a presence in its last remaining continent, with the transaction finally allowing it to cover Africa. “LIXIL is expanding the global footprint of its water technology business with this transaction,” commented Kinya Seto, LIXIL CEO and president. “Full ownership of GDWT will strategically position us for growth in South Africa and the emerging markets of sub-Saharan
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INDUSTRY FOCUS: BUILDING
// OUR CAPE TOWN SHOWROOM REVEALS HOW A BETTER HOME IS MADE OF SURPRISINGLY SIMPLE THINGS // Africa. This transaction also allows us greater flexibility in managing the brand portfolio and business strategy in this region. “We have already seen steady progress in strengthening GDWT’s governance and operational efficiency, with strong support from HQ teams on financial management, supply chain and manufacturing, quality, marketing and other activities. Taking full control of the business will allow us to accelerate these activities
Eurocube Full Bathroom
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and, ultimately, generate sustainable long-term performance and growth in this important region.” “This is an exciting step forward for GDWT,” added Henk Suelmann, GDWT CEO. “We are set to evolve to become a key part of the global LIXIL footprint via an integration process that will feature investment as well as strong support from Japan and other parts of the network. This will allow us to deliver high-quality service and world-class products to our customers. We want to see everyone in Africa experience one of our brands, and we believe that as part of LIXIL, this now becomes a real possibility.” BIG SA INVESTMENT The acquisition of GDWT formed part of a colossal R1.6 billion total investment by the LIXIL Group Corporation in its South Africa arm, as outlined LIXIL President and Chief
Executive Kinya Seto in March last year. Seto explained that, for many years, only around 1 or 2% of GDWT’s sales were reinvested into facilities; there was now a pressing need to rectify the lack of capital expenditure. “Many of the facilities are 60 years old, so we need to upgrade them to modern facilities and invest more,” Seto expanded. “This year, we are planning to invest 10% of sales.” This translates to an investment of about $13million (R152m) in GDWT’s manufacturing facilities in South Africa, which Seto added would have the welcome benefit of creating a better working environment for employees. Seto qualified that this investment must be made on an ongoing basis to improve more of the facilities, such as ceramics and acrylics. Investment is necessary to shore up the long-term future of the business because manufacturing
LIXIL
// INVESTMENT WILL ALLOW US TO STABILISE LOCAL PERFORMANCE SO THAT PRODUCTS MANUFACTURED IN SOUTH AFRICA COMPETE AT THE HIGHEST LEVEL // technology changes so rapidly. 60 to 70 years ago most of the products were made from castings, for example, while now they are being forged; the next 10 years could well see a move towards 3D printing, along with changes in the types of material used. “Our goal is to bring global standards, practices, and among the most modern technology in our industry to South Africa,” BizNis Africa reported Seto as remarking. “Now that the South African business is fully-owned by LIXIL, we will be more positively aligned to the global business, better able to control the manufacturing process and improve our design capabilities, quality standards and productivity in line with our operations in Japan, Europe and the United States,” he went on. “We need to ensure certainty, and this investment will allow us to stabilise local performance through better efficiencies, so that products manufactured in South Africa compete at the highest level.” FLAGSHIP CAPE TOWN SHOWROOM LIXIL Africa wasted no time in making its mark in its long-awaited new home, opening its new, exclusive showroom at Cape Town’s iconic Victoria & Alfred Waterfront, midway through last year. The luxurious environment offers its trademark
premium solutions for every water small add.indd 1 need in domestic, hospitality or commercial properties, making stylish homes a reality for everyone. Product specialists are on hand to welcome architects, project developers, interior designers and the general public, sharing expert knowledge and inspiring guests to bring their dream bathroom or kitchen to a glistening reality. “Our new showroom reveals how a better home is made of surprisingly simple things, whether it’s creating a luxurious bathroom space to escape to after a long day, kitchens that unleash creativity, or showers and taps that let you experience water in new ways,” said John Westermeyer, Chief Marketing Officer of LIXIL Africa. “Our new showroom is an interactive and visual functional
space that offers our customers the 2019/08/31 opportunity to engage personally with our wide range of kitchen and bathroom water-centric products, systems and solutions,” Westermeyer continued. “Our Cape Town showroom is LIXIL Africa’s flagship display of all that we can offer to discerning homeowners and property developers, and we look forward to welcoming those seeking exquisite design, smart solutions, and simply great products through our doors.”
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Published by CMB Media Group Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Rouen House, Rouen Rd, Norwich NR1 1RB T. +44 (0) 1603 855 161 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. Any resemblance to real persons, living or dead is purely coincidental. 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. Š CMB Media Group Ltd 2019
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ENTERPRISE AFRICA
SEPT EMBER 2019