PRO ROOF FEATURE by TNT Multimedia Limited

PRO ROOF

FEATURE

STEEL RESOLVE AND PROFITS WITH HONOUR

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Pro Roof FEATURE

At age 11, Rafik Mohamed might not have realised the extent of his entrepreneurial spirit as he sold fresh produce from door to door, but some years later his passion for business lead to South Africa’s major independent Steel Merchant Company - Pro Roof. Mohamed’s strong core beliefs in hard work, valuing his employees, and maintaining his personal honour in all things formed the foundation of this R1 billion industry. By Colin Chinery

ost entrepreneurs will reminisce on the early exposure to trading and the corporate world, true to the fact that a fire begins with an early spark. Thirteen-year-old Bill Gates was programming computers when the idea of a personal computer was born, which lead to Microsoft, while his British counterpart Richard Branson’s first profitable business venture was a magazine called Student at the age of 16 which later resulted in the global Virgin brand. Rafik Mohamed’s journey started at an earlier age, when at just eightyears-old he began selling fresh produce from door to door in the small farming town of Brits in the North West Province. Like many entrepreneurs he reminisces how he left school in his matric year to support his family and look after his sick parents. “I gave my father R1100 - the profit from months of trading. This made him very emotional, a moment I would never forget. From that point I learnt the basic purpose and principles of business, something that no school or university can teach. “The telling lessons he enriched in me is that my name is the most valuable asset,” he says, with a lump in his throat. Mohamed also marks this very sentimental moment as the “glue that bonded him to his father”. Months later he suffered the loss of his role model father and took the reigns of the family and its responsibilities. Day by day this enthusiastic entrepreneur reminds his staff that money will be made and money will be lost, but emphasises that once their name or reputation is lost they lose much more. Shortly after taking over his father’s www.southafricamag.com

Pro Roof FEATURE

hardware store Rafik Mohamed saw an opportunity in demand for roof sheeting. Without hesitation he approached a steel company and proposed the idea of opening a roof sheeting manufacturing business. They accepted and in 1988 Pro Roof Steel was founded. “I was the driver, manufacturer, machine operator, order taker, accountant and receptionist… I was Pro Roof.” He was loaned R30,000 to buy steel and traded 3,000 tons in the first year. “My strong customer base and support from the people around me made it easy to break into the market,” says Mohamed. The company reported a growth rate of 40 percent and a net profit of R1 million in its first year of trading, a clear signal that he was spot on with his over ambitious projections. Fast-forward to 2012 and Pro Roof Steel is now one of the largest, most prominent steel merchants in Southern Africa, being a key player the steel industry. From a roofing company, it has expanded into a wide array of steel products commonly used in its operating markets including welded universal columns and beams, fencing and wire, tubing and cold formed as well as roofing solutions. Pro Roof’s processing and servicing centres headquartered in Vereeniging employ 700 people and regional branches in Cape Town, Pretoria, Durban and Nelspruit create a network and infrastructure to supply the demand of the growing South African economy. Monthly production is in access of 15,000 tonnes a month. 4

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Unsurprisingly, Rafik Mohamed was a finalist in the 2009 Ernst and Young’s World Entrepreneur Awards, South African Best Entrepreneur category. “It was an honour,” he says. JSE-listed Andulela Investment Holding Limited, recently acquired shareholding in Pro Roof Steel Merchants. “In line with managements strategy the investment in Pro Roof has been identified as a suitable investment for Andulela,” the company said. “We see our steel side going further downstream,” Rafik Mohamed explains. “Over the next three years we plan to open over 30 retail outlets nationally, and through that network selling our entire basket of products.” While the steel branch has just seen a further acquisition, diversification is pursued outside as well as within this sector, most recently into mining, with a platinum scaling

operation agreement with an Anglo American subsidiary. In recent months the company’s biggest growth has been in property management and development, which Mohamed introduced in 1998. His property division - Changing Tides focuses on industrial, residential and commercial property, including affordable housing and student accommodation. While there are developments in the exclusive residential northern suburbs of Johannesburg, Hoosien Mohamed, the MD of Changing Tides, prefers supplying the demand for the lower-end of the property market. The attention to detail and high building standards set Changing Tides apart from its competitors, as it continues to gain market share. “Being an independent we are able to react to trends and opportunities, which our competition can’t do,” says Hoosien Mohamed. The entire group is committed to growth and the determination to succeed

For your steel and finance requirements contact us at: Jan Bosch Johan van Rooyen Steel Source Africa (Pty) Ltd Steelinvest Group Off: +27 11 6970003 South African Office Mob: +27 82 881 9064 Mob: +27 825511856 Fax: +27 86 672 5787/+27 11 697 0110 johan@steelinvestgroup.com jan@steelsource.co.za www.steelinvestgroup.com · Traders of long and flat products to the Steel Industry · Providing finance and logistical solutions in collaboration with first class steel producers · Office Locations: Houston, Johannesburg, Antwerp, London, Paris, Dusseldorf, Dubai, Istanbul, HongKong, Shanghai, Singapore, Delhi · Established in 2002 · Service Center in Antwerp, Antwerp Decoil Center, Capacity of 280'000 mt per year in high grade steel for special applications · Trade Finance company: Westford Trade Services · Operational in Africa since 2007

Pro Roof FEATURE

has translated into an ever-expanding customer base as well as a constantly increasing array of capital equipment. Every decision maker and manager subscribes to a philosophy of transparency, accountability, integrity, excellence and innovation in all their business dealings. This Rafik Mohamed still monitors personally. Quality, service and pricing are Pro Roof’s trademarks in a market where competition is severe, he says. “It’s extremely fierce. This is not an easy industry and the challenges can be great.” Asked about perennial skills and training he says the effect of the government’s skills levy has been positive. “But the question is whether or not people capitalise on it, use it to empower themselves and advance.” Rafik Mohamed comments on the ability to retain quality staff and management, “To do this you must share. We believe in empowering people, building relationships and improving lives, and entrepreneurship with incentivisation, decentralised management that communicates.” Rafik is confident that Africa will be the global centre and driving force for opportunity and future success. He explains, “Europe and the Americas is in a mess. In Asia or the Gulf you are a small fish in a big 6

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ocean. In Africa you are a big fish in a pond.” Is South Africa a pivotal place in this “brave new Africa”? “Absolutely! We are a springboard into the rest of Africa,” he answers. “We might have some third world issues but our first world infrastructure makes this country unique. As time goes we are seeing more global entities and brands using South Africa as a gateway to the African continent, taking full advantage of the excellent infrastructure.” Rafik acknowledges the gaps that need to be addressed in promoting and giving opportunities in Africa. “I don’t think entrepreneurship in South Africa has matured its potential, nor is it being fully promoted.” The growth plan for Pro Roof is unambiguous. “If we size our selves up to our competitors then our ambition is to be among the three biggest industry players in South Africa. It’s all about hard work, commitment, and integrity. Our growth has come about through honour. What’s most important is one’s credibility and this is the fundamental principle in my business. I look after the legacy that my dad left me and teach the Pro Roof team and my children that the most credible thing in life is your name. You are who you are. It’s not money. Lose your name and you’ve lost everything. In the context of your business you build bridges, you don’t burn them. My ultimate success will be determined by my ability to permanently enforce this philosophy which I lived by.” END

INSURANCE & RISK MANAGEMENT There is strength in numbers and our strength is complemented by our association with the leading product providers who support our vision and business. We are proud of our association with Pro Roof Steel. Contact Us Tel no: 011 442-6160 Fax no: 011 442-5936 email : admin@vanflymen.co.za www.vanflymen.co.za

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