Interview - TDC

REVOLUTIONARY

TRADING Sustainable Business Magazine speaks to Earle Kelly, Chairman and CEO at TDC Group, about real estate developments, community initiatives, and the company’s changing portfolio.

The St. Kitts Nevis Anguilla Trading and Development Company Limited (TDC

Group) is a multi-sector group of companies with a wide-ranging portfolio spanning a variety of goods and services. Founded in February 1973, and headquartered in Basseterre, St. Kitts and Nevis, TDC was listed on the Eastern Caribbean Securities Exchange in June 2003. Today, it has become one of the largest companies in the OECS region, with 630 employees and USD$56.22 million in annual sales.

HOUSING THE FUTURE

“We’re just beginning to embark on a new real estate investment, with thirty homes to be sold to middle-income earners,” says Earle Kelly, Chairman and CEO at TDC

EARLE KELLY, CHAIRMAN AND CEO, TDC

Group. “The infrastructure is already in place, sales have begun, and the development is expected to be built out over a period of three to five years. Over 100 jobs will be created over the course of construction.”

Using the best and most sustainable building materials is a necessity for TDC. “The walls will be of concrete blocks, floors of concrete and roofs of galvanize and

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lumber,” explains Mr. Kelly. “We wont use any sand from our beaches. Instead, we’ll use sand brought down from the hillsides by our seasonal rivers. Our use of concrete speaks to the integrity and the strength of the housing stock that we’re seeking to build to mitigate against the risk of hurricane damage. We’ll also use solar energy to run some aspects of the operation of the homes, and we’ll catch and store rainwater in cisterns for domestic use.”

EDUCATING THE NEXT GENERATION

TDC is committed to supporting local communities. “We support youth and sports programs, community organizations and cultural activities,” says Mr. Kelly. “One of our major initiatives is a scholarship program named after the first Chairman of the company, Warren Tyson, that supports young, promising students who enter high schools annually. In every class, in every high school and sixth form college, there is at least one student who the company supports. That means we have a significant number of students in schools throughout the Federation at any one time. We provide them with financial support, which includes school supplies and uniforms. The program also involves a mentoring component, which also allows students to work during school vacations and weekends.”

CHANGING PORTFOLIO

Although TDC remains heavily involved in trading activities, the company has also diversified into financial services and insurance. “Today, those services represent two major components of the businesses, generating approximately 50 percent of our profits,” explains Mr. Kelly. “Currently, we have a finance company with a limited banking license which authorizes it to offer certificates of deposit and loans. The insurance company of-

“ONE OF OUR MAJOR INITIATIVES IS A SCHOLARSHIP PROGRAM NAMED AFTER THE FIRST CHAIRMAN OF THE COMPANY, WARREN TYSON, LAUNCHED TO SUPPORT PROMISING YOUNG HIGH SCHOOL STUDENTS”

fers property, vehicle, and liability insurance, and was recently awarded, for the fourth consecutive year, an A- Financial Strength rating from A.M. Best, the international company that rates insurance companies. The Group’s re-insurance company was also rated B+ by A.M. Best. Those ratings provide the Group the opportunity to participate in covering risks throughout some of the other Caribbean islands, where it would not previously have been invited to participate.”

“To build on past successes, the company is presently undergoing a business transformation exercise, which is intended to make the Group more efficient and profitable,” says Mr. Kelly. “Over the years the company has expanded into many different areas, some of which are very competitive and generate low returns-on-investment. We are diligently reviewing what the company does best and will concentrate our efforts in areas where we have the competitive edge and generate more attractive returns. That means over the next couple of years we may be involved in fewer activities, but generate higher profits”. c