PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT
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Kings How Phumelela Racing’s diversification and technology are taking it into the future.
Game Stores
4 decades young
The Post Office
Delivering innovation
Renault
Driving change to new heights
Midmar
A toast to perfection
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No sign of decline As a relatively new but growing force among South Africa’s business-to-business media South Africa Magazine tries not to get too distracted by politics. However, when we picked up on the row going on between our cousins in the news media and the government, our ears pricked up when one journalist suggested that press constraints could lead to a situation that might, in turn, deter outside investors from doing business here. We’ll let the editors and the government fight that one out, but the argument does provide us with the opportunity to demonstrate, via the case studies on the following pages, just how pleased both external and internal investors in South Africa appear to be. You’ll find the inside stories about how global players like the international car rental brokerage Holiday Autos, the iconic sportswear maker Nike, France’s national car maker Renault and the global pharmacy conglomerate Johnson and Johnson operate successfully here in South Africa. Domestic success can be found in every sector from the leisure industry – where companies like the horse racing and bookmaking concern Phumelela and the casino group Emperors Palace play – to retailers like Game, Col’Cacchio or Midmar Liquors. And there are successful facilitating organisations like the National Association of Automobile Manufacturers of South Africa, the Post Office, the hardware group Mica and the Saldanha Bay Municipality, all working hard for their stakeholders. In the automotive and logistics arena, you’ll find the manufacturer VDL Bus & Coach, the supply chain specialist Haulcon, the shipping and logistics firm Bridge Group, the forwarder and clearer Berry & Donaldson and the auto body repair group Auto Magic. Elsewhere, a diverse manufacturing sector is represented by the likes of Bateman Engineering, kitchens builder Easylife and the injection and pressure moulded rubber products supplier Van Ryn Rubber. It certainly feels to us that any decline in South Africa’s business sector is, as they say, much exaggerated.
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entertainment Everyone’s favourite brew
After appearing with Shakira at the World Cup concerts, Freshlyground have a new album out and are London-bound. We ask Zolani, what’s next?
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sport Game Plan
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culture And eckshun in Hollywood
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Ahead of the women’s Rugby World Cup, South Africa’s coach Denver Wannies and captain Mandisa Williams discuss the game’s growth
South Africa has long been a favoured location for overseas filmmakers, but it’s the growing success of by with a little help from his homegrown products that underpins the industry
wine Decanter Awards 2010 Meet the South African Wine Stars of 2010
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FEATURES
REGULARS
Contents
Stores Game ????
ce st Offi The Po????
Renault????
22 BATEMAN ENGINEERING 30 GAME STORES 40 PHUMELA RACING 46 HOLIDAY AUTOS 52 THE BRIDGE GROUP 58 HAULCON 62 JOHNSON & JOHNSON 66 MICA 70 MIDMAR 78 NAAMSA 84 NIKE 90 PEERMONT 96 RENAULT 102 PROCTOR & GAMBLE 106 SALDANHA BAY 110 SA POST OFFICE 120 COL’CALCCHIO 124 AUTO MAGIC 128 EASYLIFE KITCHENS 132 VDL BUS & COACH 136 BERRY & DONALDSON 140 VAN RYN RUBBER HOLDINGS www.southafricamag.com
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Everyone’s favourite brew After appearing with Shakira at the World Cup concerts, Freshlyground have a new album out and are London-bound. We ask Zolani, what’s next? 6
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Freshlyground ENTERTAINMENT
THE MEMBERS
Z
olani Mahola, of South Africa’s perennially popular afro-pop outfit, Freshlyground, laughs, “If I had to style myself as a coffee, I’d be an espresso. A short, sharp hit.” The band’s diminutive lead singer packs a punch, as millions of fans saw when she performed Waka Waka, the official World Cup Song, alongside Shakira at the World Cup concerts. Working with the Colombian superstar was a stroke of luck. “We were at the right
Freshlyground started playing together in 2002. The members of the sevenpiece band are Zolani Mahola (lead vocals), Simon Attwell (flute, mbira, harmonica), Peter Cohen (drums), Kyla Rose Smith (violin, vocals), Julio “Gugs” Sigauque (acoustic guitar), Josh Hawks (bass guitar, vocals) and Seredeal “Shaggy” Scheepers (keyboards, percussion, vocals). Band members come from South Africa, Mozambique and Zimbabwe. Band ‘elder’ Peter Cohen has played with Johnny Clegg. Josh Hawks played with Bright Blue and Mango Groove. A drama graduate from UCT, Zolani Mahola has also done television work, playing Boniswa in series Tsha Tsha. www.southafricamag.com
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place at the right time,” Zolani explains. “We were recording our album in New York and Shakira’s producer happened to be in a studio downstairs. He came up and said he might like to use some of our music. So we listened to the song and workshopped some ideas.” The next thing, they were on a plane to Los Angeles to record the Waka Waka video with Shakira before headlining at the World Cup concert to a global television audience of billions.
GOING CRAZY RIGHT NOW “The effect’s been crazy,” Zolani grins, with that trademark megawatt smile. “Our Facebook page has tripled.” Not bad for a township girl from East Brighton. Raised by her father after her mother died when she was very young, she attributes much of her success to him. “He gave me the freedom to let me be whoever I wanted to be.” Zolani remains remarkably down-toearth. 8
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THE SONGS Their debut album, Jika Jika was released in 2003. Their multi-platinum 2004 album, Nomvula, spawned the single Doo Be Doo, which became the most played song in South Africa in 2005. Nomvula was followed by Ma Cheri, with single Pot Belly a huge hit. World Cup anthem Waka Waka is a cover of an African marching song created by Cameroonian band Golden Sounds as a tribute to African soldiers who fought in the Second World War. It was popularised in Colombia by West African DJs. The band has won many awards, including four Metro FM Awards and an MTV Europe Music Award for Best African Act. It’s fourth – and latest – album, Radio Africa, was released in May. The band supports the works of the Desmond Tutu HIV Foundation (desmondtutuhivcentre.org.za/en).
Freshlyground ENTERTAINMENT
“Nobody can have a big head in the band!” she chuckles. “There are seven of us all of different ages, sexes, races, nationalities and we keep each other grounded.” Freshlyground has been brewing its unique blend of music since 2002 and their addictive Doo Be Doo track, off second album Nomvula, was the most-played song in South Africa in 2005. They’ve bagged a string of local awards and were the first South African band to win an MTV Music Award for Best African Act. Waka Waka has brought them a whole new global fanbase, especially in Latin America where the language of the townships translates easily in the favelas. “There are very close links between the two cultures,” Zolani says. “Many Latin Americans have some African roots.”
WAKA WAKA MAGIC GROWS
VISITING THE DARK SIDE The album also explores the darker shades of life on the continent. “We wanted to take some of the sweetness out of Freshlyground,” Zolani says. One song, Big Man, talks of rampant consumerism alongside abject poverty in South Africa – an ironic subversion of what the Freedom Charter promised. “The gaps between the haves and the have-nots are so wide and it’s hard to shut off from people who are destitute. So we wanted to speak about that,” says Zolani, whose song Working Class addresses the issue of unemployment. “You’ve got street kids standing, begging in town. Everybody has big houses and cars and five minutes away from that you’ve got people who have nothing. The majority of our fans are still suffering the effects of apartheid.” Chicken To Change points a fi nger at Zimbabwean Prime Minister Robert Mugabe and other leaders who have squandered the hopes of their people. “In the beginning, Mugabe was like Obama – he inspired love and hope in people. Yet over the years, we’ve seen just how much of a mess Zimbabwe has become. You just feel this weariness. It’s insane,” she sighs. The darker, bitter blends on the album are leavened by generous, full-fat love songs like Fire Is Low, which is sweetened with Zolani’s rich voice. There are also a clutch of highoctane crowd-pleasers to get fans moving. The Toast Festival gig will deliver an organic Freshlyground high to UK fans both new and old, Zolani promises: “All we want to do is make music that makes people feel proud of who they are and happy in their own skins.”
Nobody can have a big head in the band. We keep each other grounded
Performing at the Orlando Stadium in the heart of Soweto was special. “People came without fear to the townships,” Zolani says. “It’s done a lot to change the perspective of South Africans. It would be amazing if there was more traffic from the suburbs to the townships as a result.” The World Cup got international fans tuning into Africa in a totally different way and Freshlyground has tapped into that zeitgeist with their latest album, Radio Africa. Produced by Frenchman Fabrice Dupont, this fourth album has a more raw, elemental, panAfrican sound. With members from South Africa, Mozambique and Zimbabwe, the band has incorporated infl uences and instruments from all over the continent. “We’ve been wanting to move more towards the African side of Afro-pop. With Fab Dupont, we had this amazing synergy because he identified with what we do.”
Freshlyground will be performing alongside Goldfish on Fri, Sep 24 at the Toast Festival (toastfestivals.co.uk/2010) www.southafricamag.com
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Game
Ahead of the women’s Rugby World Cup, South Africa’s coach Denver Wannies and captain Mandisa Williams discuss the game’s growth 10
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Women’s Rugby SPORT
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ighter, smaller and fairly new to the game, South Africa’s women rugby players are determined to do the country proud in this month’s World Cup in Guilford and Twickenham. And SARU are getting serious too, with President Oregan Hoskins pledging more support for the women’s game.
Mandisa, when did you start playing? In ‘99 in a club way back in my village. My father started coaching the girls.
He must be thrilled at your success. Yes, especially my father, because way back he played flyhalf. He still analyses every game I play.
How often do you train?
Five days a week. Sometimes four because, on the other days, we play matches.
Is rugby more popular with women? It’s growing very fast.
How physical is it? It’s exactly the same as the men’s.
How do you fit work and study in? It’s not easy. We have working girls and in a month we can have two camps from Thursday to Sunday. I’m going to be looking for work and it’s going to be difficult. Many of them have gone over their leave and the girls who are studying have to work hard.
The team is made up of all races?
Yes, and it happened naturally. It’s amazing – we stick together!
What are your aims in the World Cup? We’re in a tough group. We have New Zealand, Wales and then Australia. The main objective is to reach the quarterfinals.
Are New Zealand the toughest team?
In this World Cup, yes. We are practising with the U18 boy’s team so we can match their speed and toughness.
The players are quite small generally?
We are very small, but we have the heart to keep on playing.
CAPTAIN’S FACTFILE Name: Mandisa Williams Age: 25 Born: Jongalanga, East London Rugby fan: From attending matches with her father, Million, who is passionate about the game and started a girl’s team, which Mandisa joined.
Position: Loose forward Rugby fact: The Eastern Province and Border regions are known to be passionate about rugby – there are more than 2000 registered women who play club rugby in three divisions in Border.
Funding fact: While SARU supports women’s rugby and pays for training camps, it’s still all amateur and the Boks have to train around work and study.
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Are girls playing rugby at school?
Is America a big competitor?
SA Rugby has just started and there was a tournament in July.
You’re looking at 35,000 players in Canada and America, we have just over 4000 players maximum.
Have attitudes towards women’s sports changed?
Some fans are starting to get to know women’s rugby better and there is more exposure in the media.
What should fans expect?
Better rugby from this team. It is not the same team that they watched in 2004 when England beat them 105-nil. We would love to see them.
How do you and Denver work?
We have a very good relationship, I like that he is honest. He’s a good guy.
Do you speak Afrikaans on the field? We use every language that we can. We use Xhosa, in the camps the Afrikaans girls are teaching us and we are teaching them – it works big time! And when we talk about the referee too.
When did SA women’s rugby take off? Ten years ago. I always say to people “if you want to compare South Africa to New Zealand or America then compare when they started.” SA vs Scotland: an all out effort
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Is it growing in popularity in SA?
Building up to the World Cup, SA Rugby have embarked on a drive to promote women’s rugby. People are starting to follow players. The support we get from government in general is part of its efforts to empower women.
WORLD CUP 2010 From August 20 to September 5. The host venue is Surrey Sports Park in Guilford where the 12 teams will spend three weeks. The later stage matches will be played at the Twickenham Stoop. Pool A games: August 20 – New Zealand v SA at Surrey Sports Park; August 24 – Wales v SA at The Stoop; August 28 – Australia v SA at The Stoop. The 12 teams competing are Australia, Canada, England, France, Ireland, Kazakhstan, New Zealand, Scotland, South Africa, Sweden, USA and Wales. Tickets are available from: ticketmaster.co.uk/WomensRugbyWorldCup or by phoning 0844 844 2010
Women’s Rugby SPORT
The World Cup is on the line
Coach Denver Wannies, 45, is from Uitenhage and played for the Namibian national team. He’s been in the game for nigh on 20 years.
Did you coach men’s rugby before this? I was asked to prepare the women’s sevens team for the 2006 World Cup. Before that I was running the development programme for the emerging Springboks men.
Is women’s rugby very physical? It is exactly the same as men’s rugby.
Is the training similar to the men’s? I always say “I’m not a women’s coach, I’m a rugby coach”. I don’t coach women’s rugby, I coach rugby.
You sound quite a scary coach.
I help them to be the very best but they have to work hard and trust me.
Do top players get subsidies?
Women’s rugby in SA is 100 per cent amateur. Most of the group are students. They get subsidised allowances but they add up to nothing in the UK.
What is your permanent job? I am a full-time employee of the Department of Sport.
What are your World Cup hopes? I hope we are really going to compete, to correct 2006 where we were almost non-existent.. END
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P R O D D I R
And eck shun in
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So loca uth Afr ic tio the n for a has l help grow overs ong b from ing s eas f een a his ucces ilmma favo und home s of b kers, ured g erp y b ins rown with a ut it’s p the indu roduc little stry ts th at
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Filmmaking CULTURE
F
ilmmaker Andrew Wilmot knows what it’s like to get friends. It was while hanging out with two of his best mates that Wilmot, one of the country’s most promising directors, came up with the idea for his debut offering, The Race-ist. “The banter between these two guys is always hilarious and I thought it would be lekker to put it on screen,” Wilmot recalls. “We wrote a script with them as bio-mechanics who come with bio-fuel and need a driver to test it on the quarter-mile scene.” Said to offer “everything that South Africans love in a movie… fast cars, hot girls and loads of action”, the film revolves around a young boy called Lukas (Craig Palmer) and his mentor, ‘Oom Noel’ (Ian Roberts). www.southafricamag.com 15
Family film: White Lion
SA IN DEMAND With its stunning backdrops, world-class facilities and skilled crews, South Africa has become a favoured location for foreign filmmakers. And its popularity is set to grow after the World Cup. “The massive television coverage has showcased the country”, explains Gugu Zungu of the Durban Film Office. A more tangible legacy is the improved infrastructure, which will make shooting fi lms in South Africa even more popular. “You have improvements in telecommunications, roads and transport systems,” says Seitiso Mogoshane of the Gauteng Film Commission. “It will raise the profile of the country.”
TRUE DEDICATION Wilmot worked himself to a standstill to get his actioncomedy to the big screen, shooting on a shoestring budget around Johannesburg. His dedication is typical of a new generation of filmmakers who are putting the South African film industry – dubbed Sollywood – on the map. A number of interesting homegrown offerings have found their way into cinemas over the last year or so. Gangster’s Paradise: Jerusalema (which made it to London in July and will be released on dvd and Blu-Ray) looks at life in Hillbrow; for rom-com fans there’s I Now Pronounce You Black and White, Ingxoxo: The Negotiation, while White Lion – about a cub who has to fend for himself – is pure family fun. Throw in the fact that international productions like District 9, Invictus and Amelia are increasingly being shot in the Rainbow Nation and the South African film industry is in rude health.
“About 10 years ago, we were only making one film a year and now there is a local production being released almost every month, so it’s promising,” says Tyrel Meyer, the star of I Now Pronounce You Black and White, in which a white man and black woman get married, to the chagrin of their parents. “We are starting to make more local films for local audiences. It’s going to take time because South Africans tend to want to watch international films. There hasn’t been much faith among local audiences when it comes to local films. It’s a case of showing audiences that we can actually make good entertainment films.”
A local production is released almost every month, so it’s promising
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COMEDY WITH A TWIST OF REALITY Local filmmakers are certainly finding unique ways of conveying the complexities of living in South Africa.
Filmmaking CULTURE
Leonardo DiCaprio in Blood Diamond
I Now Pronounce You Black and White may be a comedy but it explores the serious work that still needs to be done to break down racial barriers. “I think everyone in South Africa wants to think that they are accepting of interracial couples, but they aren’t yet,” says Meyer. “Me and Astara Mwakalumbwa (who plays his fiancée) decided one day to have a coffee and chat about our characters. We went to this place in Cape Town and got these strange looks from both white and black people who obviously thought we were a couple.” In Gangster’s Paradise: Jerusalema, director Ralph Ziman tackles the country’s lawlessness by looking at a crime that doesn’t get much in-depth media coverage. “The first time I heard someone had tried to ‘steal’ a high-rise building in central Johannesburg in broad daylight I was dumbstruck,” says Ziman, whose film is based on the exploits of crime boss Lucky Kunene. “And not just that, one smooth operator had stolen literally dozens of them. I wanted the film to take a harsh but realistic look at Johannesburg – the city, the people, the place – but also to reflect the hopes of its citizens.”
CREDIT FOR JERUSALEMA THE FALL GUYS For stunt co-ordinator Sensei Thulani Ndlovu, South Africa’s popularity as a fi lm location is great. Not only has the martial arts expert worked on 64 films and TV shows but he has also started the Dimensional Stunt School in Cape Town to train the next generation of local fall guys (and women). “Our focus is to provide talented, physically fit individuals from Africa with the highest quality of professional stunt training,” he says. “It contributes to the growth of skills and talent within the South Africa film and TV industry.”
The fact that Gangster’s Paradise: Jerusalema has been well-received overseas and was released in the UK proves that the world is beginning to notice South African filmmakers. Directors warn, though, that the government needs to fund more local productions. “When you approach government institutions, you run into a resistant wall that is completely hostile to local filmmakers,” Wilmot says. “If you have big investors backing you with dollars like District 9, it is much easier to get involvement from the film fund and Industrial Development Corporation (IDC). The problem is, this sends the rebates to international investors and leaves local filmmakers scratching for pennies.” END www.southafricamag.com 17
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Decanter Awards WINE
M e e t T h e S o u t h A f r i c an
W i n e S t ars OF 2 0 1 0
F
ollowing the recent announcement of the prestigious Decanter World Wine Awards 2010, South Africa Magazine is delighted to report that SA wines once again wowed the international judging panel. Here we present a review of the judge’s favourites. Decanter’s Tastings Director, Christelle Guibert says: “Sixteen judges took four whole days to judge the South African entrants in this year’s awards. As well as a clutch of Gold medals, nine bottles particularly caught the attention of the judges and as a result walked away with a highly coveted Regional Trophy. This is great news for the country’s wine makers and even better news for consumers on the look out for great wine!” www.southafricamag.com 19
De Capo Vineyards, Idiom Cabernet SauvignonMerlot-Cabernet Franc, Stellenbosch 2006 Dense ruby colour with a fragrant, slightly leafy nose and an earthy, rich palate. Attractive chewy blackcurrant fruit plus a hint of maltiness.
Glenwood, Vigneron’s Selection Chardonnay, Franshhoek 2008 Aromas of citrus and apple compote with a hint of smoky bacon, reflected on the palate with balanced, refreshing acidity on the finish.
Uva Mira, Single Vineyard Chardonnay, Stellenbosch 2008 Fine, slight breadiness. Honey and white fruit like melons and fresh pear on the nose that also retains a floral aspect. Vivid, deep and well-defined with a dry mineral streak on the very long finish.
Kleine Zalze, Shiraz Mourvèdre Viognier, Western Cape 2009 Aromas of red berry fruit and violet on the nose, the palate is pure and elegant with notes of blackberry and apricot and pure, supple tannins on the finish.
Robertson Winery, Constitution Road Shiraz, Robertson 2006 Subtle aromas of cassis and smoky leather with elegant black berry fruit character and spice on the palate. A balanced, refreshing finish.
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Decanter Awards WINE
Paul Cluver, Weisser Riesling Noble Late Harvest, Elgin 2009 Notes of stone fruit and caramelised orange on the nose. Rich, concentrated citrus and toffee character on the mid-palate with powerful, fresh acidity on the finish.
Oak Valley, Pinot Noir, Elgin 2008 Perfumed aromas of soft fruits and savoury Earl Grey tea. The palate displays refreshing cherry and red berry character with a silky texture on the finish.
Cape Point Vineyards, Isliedh, Cape point, South Africa 2008 Elegant nose of lemongrass and herbal minerality with refreshing concentration on the palate and elegant flintiness on the finish.
De Heuvel, Barrel Fermented Chenin Blanc, Swartland, South Africa 2009 Distinctive and idiosyncratic in a good way. Baked apples, cloves, white blossom and a long hazelnut finish. Layered and rich.
To find out if any of the nine South African wines went on to win an International Trophy at the Decanter World Wine Awards gala dinner, see www.decanter.com after September 2. www.southafricamag.com 21
o f P roject M anagement Erica Wark speaks to Tollie Nel, Managing Director of Bateman Engineering’s Sub-Saharan business unit, to find out what’s behind the claim that ‘Bateman IS Project Management’ 22
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Bateman Engineering FEATURE
A
s a leading engineering-project house and equipment supplier, Bateman Engineering (Bateman) serves a range of industries worldwide. Its focus is on delivering innovative solutions to unlock the value of natural resources through converting them into marketable products. The company’s comprehensive capability includes, but is not limited to, process engineering, specialist niche technologies, equipment supply and related services, procurement, financial and commercial facilitation, and contracting and project
management. These services are underpinned by Bateman’s commitment to delivery excellence, and are focused on maximising the success and profitability of projects on behalf of its global client base. Bateman’s experience reaches back to the early years of the last century, with more than 3 000 successful projects in nearly 70 countries, often in difficult and remote terrains. Bateman comprises three divisions. Bateman Engineering Projects provides project services for brown field upgrades and complete, new, metallurgical process www.southafricamag.com 23
Bateman Engineering FEATURE
plants, over a wide range of commodities and technologies, through a number of regional offices. Global Centres of Excellence that form part of this division enable and support Bateman’s project delivery operations worldwide by providing technology supply packages, and the ongoing scanning of emerging industry and commodity needs for innovative new processes or equipment. Bateman Engineered Technologies is the Group’s equipment supply division and, also comprising the worldwide Delkor group, supplies a comprehensive range of specialised and solid-liquid separation equipment, and bulk materials handling technologies and systems. Bateman Beijing Axis, a joint venture with The Beijing Axis, offers low cost procurement 24
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out of China for Bateman projects and to external clients. At Bateman a wide variety of projects are handled, using various contracting models including EPCM (engineering, procurement, construction and management), lump-sum EP (engineering and procurement) and LSTK (lump-sum turnkey). Leading edge project management systems ensure a high level of control over all project stages of the project life-cycle. Recent and current project examples are the Lumwana copper concentrator project for Equinox Minerals in Zambia, the Sishen Expansion Project for Kumba Resources in South Africa, sulphuric acid facilities for DMSA’s Ambatovy Nickel project
Apollo E&I Construction
Apollo E + I Construction specialises in industrial electrical and instrumentation installations and commissioning We are a preferred BEE partner within this field. Apollo E + I Construction (Pty) Ltd. was founded in 1995 and has developed an eviable reputationin the field of electrical instrumentation construction.
The Directors of Apollo E & I Construction (Pty) Ltd (Apollo), are committed to the implementation and maintenance of a suitable Quality Management System
The safety and health of our people and their families are of vital importance to Apollo. In addition to client requirements, management strives towards setting goals to improve the safety standards of the company.
Take a look at our industry accreditation, references and qualifications at www.apollocon.co.za
WHY APOLLO ISO 9001:2008 Apollo is an established company applying quality management systems Tel: +27 (0) 11 908 1732 Fax: +27 (0) 11 908 1591 webmaster@apollocon.co.za www. apollocon.co.za
BBBEE Apollo’s BEE Credentials and shareholding make the company a preferred BEE partner within instrumentation installations and commissioning
Bateman Engineering FEATURE
in Madagascar, the Blue Ridge platinum concentrator for Ridge Mining and a debottlenecking project for Foskor in South Africa, and the Trekkopje Uranium Project for AREVA Resources Namibia. The Trekkopje project is a good example of Bateman’s capability to offer differentiated, projectspecific process technology solutions as this project is the first time it is applying alkaline leaching to uranium processing. So, if you think your company could benefit from expertise in any of the following areas, I would suggest speaking to Bateman Engineering Projects: Prefeasibility and feasibility studies Due-diligence studies Control-budget estimates and asset evaluations Process developments and audits Design and detail engineering Project and contract management
Where in the world? Bateman Engineering Projects provides its project services through geographicallyfocused Business Units for Sub-Saharan Africa, India, Australia & South East Asia, and the CIS (Commonwealth of Independent States). The Group however has offices across all five continents via its other divisions. The company operates primarily in developing regions with evolving economies where satisfying market needs and securing new business is promoted by its ability to assist clients to raise project funding and arrange commercial agreements. Basically, no matter where you are based or where your project might be, Bateman can support you.
How does your company stand to benefit from working with Bateman? There are many advantages to working with Bateman, through conceptualisation of your project, to design, construction, installation, commissioning and ramp-up. For example: 26
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Bateman Engineering FEATURE
Global, well proven process design & engineering expertise Superior project management systems and skills Experienced, multi-skilled teams Cost-effective project services Project delivery on time to a high quality and meeting the customer’s needs What’s more, you will have the peace of mind that Bateman employs a substantially higher percentage of process engineers compared to many other companies in its industry. In fact, this is an area of the business that Bateman is dedicated to: finding and keeping skilled engineers – the lifeblood of the company. MD, Tollie Nel, is particularly concerned about the scarcity of skills, and is keenly tackling the ‘gap’ of those in their 30’s-40’s who have the talent and the qualifications, but require the experience. Mentoring is, as a result, a strong focus area in Bateman and Nel notes that this has proved to be an effective means of fast-tracking the growth and development of its people. In terms of incentivizing the existing workforce at Bateman, the company not only provides access to continuous coaching and 28
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mentoring, but also offers real opportunities for diversification and development of roles, while allowing people the freedom and options to choose the career path most suited to their abilities and interests. If you would like to find out more about career opportunities at Bateman please visit their website link below. So, apart from talented people, what makes Bateman strong in business practice? Nel explained to me that the Bateman culture is underpinned by five core values, including: Teamwork – as a global company, teamwork is critical. Through building effective teams across Bateman’s global operation, team members draw on the worldwide expertise of the Bateman Engineering Group – whether it resides in Russia, Australia, Africa, India or elsewhere - making it easily accessible to the client. Accountability – empowerment of Project Managers means they are solely accountable for their project decisions, ensuring fast, timely decision-making and ultimately the delivery of the project on or before deadline. Customer focus – the customer is “king” at Bateman, which is particularly important in this business, where the success of large-scale, multimillion dollar, highly intricate projects is at stake. For Nel, working closely with the clients, and nurturing client relationships, is critical to ensuring successful project delivery.
Next on the cards for Bateman: Bateman’s largest prospects currently remain within the energy commodities, in particular, Uranium, says Nel, with promising geographical markets being sub-Saharan Africa, Australia, India and to a lesser extent, but growing in importance, markets such as Malaysia and Mongolia. Opportunities in South America are also a consideration, particularly as Bateman’s
Leaders in the construction and installation of bulk material handling systems
equipment supply division has a Delkor office in Santiago, Chile. The potential approach that would be taken when entering any new geographical market is to seek joint ventures with existing local companies where they can benefit from Bateman’s technology and know-how, and provide Bateman with the local knowledge of doing business in these areas. With the natural resources market emerging from the recent financial crisis, Nel’s focus is very much on new business. Having been with Bateman for a decade, Nel has, throughout this period, placed priority on client interfacing and building relationships. As a result Bateman works successfully with small and large companies, enjoying a high percentage of repeat orders. Regardless of the size of the company or the project, Bateman’s commitment is to deliver excellence in all that it does. If you’d like Bateman to help you engineer your company’s growth then please visit www.bateman.com for more information END
Game celebrates 40 years of successful trading Game Stores - a subsidiary of the JSE listed Massmart Holdings celebrates its 40th birthday this year.
T
he dynamic discount retail chain has come a long way since it opened its first store in Durban in 1970 in cramped premises in the city’s CBD, ringing up sales of R78 000 in its first month of trading. Today, the Game banner flies proudly over 90 stores in South Africa and in ten other African countries, selling 20 000 different products to over 45 million customers per year. In 2010, total Game sales will exceed R11.7 billion. The group provides employment for 11 000 people. Game stocks the world’s leading brands and is an industry leader in several categories, including large and small appliances, gardening tools and accessories, home fitness equipment, camping and outdoor products, consumer electronics, cellular phones and diapers. 30
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Game Stores FEATURE
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Game Stores FEATURE
Ranges are selected to satisfy the needs of the mass market of consumers, and Game’s significant purchase volumes ensure that it is always able to offer the best prices in key categories of product merchandise. ‘We also offer our own private label products and, wherever possible, we stock locally manufactured products in each country in which we trade, and aim to establish local supply chain networks,’ said Game managing director, Jan Potgieter. 32
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Frequent exposure in the national and community printed media is used to achieve high impact visibility in specific target markets, backed by themed TV campaigns and point of sale material in store. Some of the factors that have contributed to Game‘s success, Potgieter believes, are the retailer’s longstanding policy of providing value for money and a price-beat guarantee backed by a solid warranty system.
Å
Game Stores FEATURE
Ongoing shopper research provides a source of valuable information on market trends, consumer acceptance levels and media penetration – data that is crucial to the formulation of Game’s strategy.
Growing into the future Supported by the financial strength of Massmart, Game is set to continue its robust expansion plans. In the next five years, Game anticipates having an extended footprint of 120 stores. The group currently operates in Botswana, Ghana, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Tanzania, Uganda and
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Zambia, and is exploring four other countries. ‘We would like to thank all our customers and suppliers who have supported us over the past 40 years because they have played a major role in our success, as well as our staff for their valued contribution to our development,’ Potgieter said. ‘We appreciate the value of customer satisfaction, the development of staff and of building long-term, mutually beneficial relationships with suppliers. Further, our commitment to shareholders is balanced by an appreciation of our responsibility to the community and the natural environment.’
Game Stores FEATURE
Fun facts about game Game stores were born out of the belief by its founders that shopping had become a tedious and boring pastime. They wanted to create a fun shopping environment, and so conceptualised retailing as a game. The signature bright pink prevails to this day. The stores collectively sell over 205 tons of crisps each year – the equivalent weight of 34 male African elephants. Game stores sell five cellular phones per minute! In one year, enough Coca-Cola is sold to fill two Olympic size swimming pools – over 5 million litres.
Sustainable development and social investment In the belief that successful business is built on the foundations of good corporate citizenship, Game operates a comprehensive social investment programme focusing primarily on early childhood education and children in need. An important project is the provision of brand new wheelchairs to school children with physical disability, which opens up a whole new world of mobility and independence for the recipients. Game and Vodacom each donate R1.50 for every cellphone sold in a Game store. To date this has resulted in the presentation of more than 4200 wheelchairs worth R8.4 million to 36
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deserving youngsters. Game’s AmaLunchbox campaign, run in partnership with the Department of Education’s School Nutrition Programme, has provided specially-converted container kitchens to 35 deserving primary schools in South Africa and Zambia. This ensures that hygienically-prepared meals are provided for 31 000 pupils. This project is based on the premise that you can’t teach a hungry child. The Tools 2 Teach project consists of Game-sponsored kits packed with enough stationery for a class of rural learners. These kits are distributed to 400 schools in remote areas each year through the Rally to Read programme, benefiting 1200 teachers and more than 60 000 learners every year.
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Game Stores FEATURE
Each box contains items such as pens, pencils, rulers, crayons, glue, calculators, math sets and scissors. Another 90 rural primary schools in South Africa and nine other African countries are receiving Game’s Tools to Play kits this year – portable pink wooden bookshelves equipped with educational toys for fun-filled learning sessions. The toys are selected by the READ organisation to meet developmental needs, alleviating one of the biggest problems facing early childhood development centres - that of providing sufficient resources. ‘Game management recognizes that the early years are critical in the development of a child and that youngsters in need deserve to be given the best possible grounding for their education to pave the way for a brighter future,’ Potgieter said. Game has been involved with Casual Day since 2005, selling stickers at stores across the country and raising R3,6 million for the National Council for Persons with Physical Disabilities in this time. 38
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Winning Together
A record-breaking 196 swimmers took part in the in the 2010 Midmar Mile Company Relay this year as part of Game’s 40th birthday celebrations. For each swimmer who completed the race, R1 000 was donated to Community Chest, bringing the total donated to the charity in the past eight years to R752 000. Game staff members who volunteer their services with a registered charity are able to apply for support from a special company fund for this purpose to address specific needs. Stores beyond South Africa’s borders select organisations to support, based on the needs of their surrounding communities. These focus mostly on poverty-stricken, abandoned or orphaned children. These are just some of the initiatives that Game has taken in order to invest in and uplift the community, with a strong focus on early childhood development. Game’s corporate social investment programme has evolved over the past 40 years to try and
make a positive, sustainable difference to the lives of needy children. ‘As a basic minimum, Game spends 1% of after-tax profit on social responsibility initiatives,’ Potgieter said. ‘Business is dependant on society for its growth and success, and we are responsive to the complex problems and needs of the communities in which we operate.’ END
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Phumelela Racing FEATURE
T h e
sport
o f
Kings
Phumelela Racing’s Robert Garner tells Jane Bordenave how the company has turned the sport into a profitable business in South Africa and how diversification and technology are taking it into the future. www.southafricamag.com 41
Company name Phumelela Racing FEATURE FEATURE
P
humelela Racing is one of only two horseracing and tote operators in South Africa. The company was founded in Gauteng in 1998 as part of a corporatization process that saw the three racing clubs in the province transferring their assets to the new company. In the following year’s horseracing in Northern Cape, Free State and Eastern Cape joined Phumelela and it was listed on the Johannesburg Stock Exchange in June 2002. It is now licensed to operate in seven of the nine South African provinces and has a current annual betting handle of about R2.7 billion (€2.8 million). The new business did not have an easy birth, as Marketing Manager Robert Garner explains, “When Phumelela took over horseracing in Gauteng, the industry was experiencing serious difficulties. Most racecourses were operating at a 42
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loss, interest in horseracing was waning and competition had arrived, initially in the form of urban casinos and later the national lottery.” However, the company has, over the past 12 years, managed to achieve a real turnaround in fortunes. Aided by the racing clubs in KwaZuluNatal and Western Cape bringing their operations under the control of Gold Circle, the company was able to create a platform for the long-term sustainability of horseracing in South Africa. As of 2002, all tote bets in South Africa have been commingled into single national pools under the TAB banner, which is carried out through Phumelela’s Amtote computerised betting system. The use of technology is something that has been instrumental in Phumelela’s reinvention of South African horseracing. There are over
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Phumelela Racing FEATURE
400 off-track tote outlets and two telephone betting centres. In addition, bets can be taken online and through mobile phones utilising WAP technology. “We also established an exclusive television channel for horseracing called Tellytrack, which shows all horseracing in South Africa and selected overseas races. As well as being shown live in all TAB outlets, it is also available on pay TV” says Mr Garner. Several years ago the organisation entered into a joint venture with Gold Circle to form PhumelelaGold Enterprises (PGE). It is managed by Phumelela and owns all media and information rights from the two companies, as well as Tellytrack. Additionally, the company provides betting services to 20 countries overseas via live web streaming.
The organisation’s product offering internationally goes beyond the countries consuming the product being able to show races live on TV in betting outlets or online. In addition horseplayers in the countries consuming the product can also bet directly into South African tote pools because Phumelela’s tote betting system is capable of commingling internationally. Phumelela hosts the global tote pools on the Dubai International Racing Carnival and Dubai World Cup annually and in October 2002; it made history by successfully commingling TAB betting pools on the Breeders’ Cup race meeting at Arlington Park in Chicago with those of the host tote. This enabled South African customers to bet into the huge USA pools and placed Phumelela squarely on the global horseracing and tote betting stage.
One exciting new opportunity is night racing which we launched last year at Turffontein, our flagship racecourse
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Your Payroll & HR Solution... Geared for your requirements The company’s client base numbers 1.5 million South Africans, and is divided into two parts, as Mr Garner explains; “our customers are not only people placing bets at our tote outlets, online or by telephone. Other Phumelela customers include racehorse owners and services we provide to them include training centres in Johannesburg, Vaal, Kimberly and Port Elizabeth, that we both own and manage. We are also provide transport for horses from their stables to the racecourse.” Complimenting this diverse range of customers is an equally diverse supply chain, “clearly without breeders, owners, trainers and jockeys there would be no racing. And, of course, the horses are the stars of the show” says Mr Garner, “Away from the turf itself, as a vertically integrated operation; Phumelela is totally responsible for racing and TAB or tote betting in its own regions. We are reliant on Gold Circle to generate racing in the Western Cape and KwaZulu-Natal and on various overseas racing jurisdictions in terms of the supplementary product we import from them.” Racing takes place in South Africa all year round, and Phumelela’s major feature-race seasons are the Phumelela Spring-Summer Feature Season, which runs from, October to November, and the Phumelela SummerAutumn Feature season, which runs from, February through April. All these events, however, are at the mercy of the elements, “this year we have had some real problems with the weather. This has not only affected racing in South Africa, but also UK racing on which we bet,” says Mr Garner, “loss of income through bad weather causing races to be cancelled has had an even greater affect on us than the recession.” As well as being involved in all areas of horse racing, in 2003 the organisation diversified its product range by creating a soccer bet called Soccer 6. The yearly turnover of this new sector has grown steadily & is set to top R300 million (€31 million) in the new soccer season and this will represent 11% of Phumelela’s total annual turnover.
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Given all these activities that Phumelela Gaming & Leisure are involved in, what lies ahead for the company? “One exciting new opportunity is night racing which we launched last year at Turffontein, our flagship racecourse. It is already achieving results and is a destination both for corporate functions and for 20-somethings looking for exciting night-time entertainment.” However, Phumelela’s main focus in terms of growing the business is on the international front. “We are expanding aggressively abroad and are constantly seeking new opportunities through PGE. There are some regulatory obstacles but we aim to overcome these as quickly as possible. In the future, we are looking to our international operations for growth as a company, with 50% of profits coming from international dealings. We are positioning ourselves as a major player on the global 24/7 horseracing circuit.”These are ambitious plans but, for a company that has succeeded in turning the sport of kings into something that is interesting, it is nothing short of the odds on favourite. END www.southafricamag.com 45
forward D riving
Ana Jones, MD of Holiday Autos in South Africa, tells Jane Bordenave how the company has come to be the top car rental broker in South Africa and its plans for the future.
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Holiday Autos FEATURE
H
oliday Autos is an international car rental broker that entered into the South African market in 1999. It arranges car rentals for customers both in the country and abroad and employs 30 people in its Johannesburg office. The company is owned by Holiday Autos in the UK and Imperial in a 50/50 split. Managing Director Ana Jones joined the firm in 2000 and rose to her current position in 2007. The decision to establish the South African office was driven by the fact that the Holiday Autos group had no representation in Africa at all before hand. Realising that there was a gap in the market, the company established itself in Johannesburg as the first business of its kind in the country, “when we launched in South Africa ten years ago it was a totally new concept in the market on two fronts,” says Ms Jones, “firstly, there was no such thing as a car rental broker before we arrived, so when we told travel agents that they could contact us and we would book car rental for their clients www.southafricamag.com 47
Holiday Autos FEATURE
anywhere in the world, it was a radical change. Add to this the fact that the agent can book online and it was revolutionary.” The service offered by Holiday Autos took from travel agents what could be a very complex and timeconsuming activity, “when you think about booking a flight, it’s fairly easy for a travel agent to do; they have access to all the flight codes and all that is required is to select and enter the right ones and the flight is booked. Booking a car rental, on the other hand, is more complex as there are different codes depending on the make, model and specifications of the vehicle. These codes would then vary again depending on the car rental company, as did the prices. The service we offer takes out all the difficulties – we do
the leg work for them and we can negotiate better deals.” However, being so novel, some were sceptical of the business’ potential for success; at the time the internet was still quite a new phenomenon and was only just coming into widespread public use. The idea that in just three computerised steps a car booking could be completed was something that people were not used to, and caused some concern in the early days, “in the beginning a lot of travel agents would book online and then all us to check that the order had been processed,” laughs Ms Jones, “Things have come a long way since then and the internet is everywhere, so concerns over the technology have gone. There are now other companies
We do the leg work for them and we can negotiate better deals
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Holiday Autos FEATURE
that have joined us in the market, but we remain the leading name and the one with the most experience.” 90% of Holiday Autos business comes from travel agencies, with the remaining 10% being direct consumers, “we targeted the travel industry at the outset and it remains our largest client sector,” says Ms Jones, “regarding the consumer profile, roughly 60% of them are domestic travellers hiring cars to travel around different areas of the country and 40% are going abroad. This of course changes by season – in the South African winter, more people go seeking holiday sun in Europe, whereas the rest of the year they are staying home. They are also mainly holiday makers, rather than business travellers.”
Given that the company deals with foreign countries it is important for the staff to know the destinations they cover, “training is very important – staff must be knowledgeable about the vehicles, understanding their features and being able to advise on suitability. They also need to know about the locations where our car rental partners are located in terms of how far they are from the airport or city centre, what type of vehicles they offer and so on. So we always keep our employees skills sets up to date in these areas.” The company has been hit fairly hard by the recession on two fronts: A drop in the number of people holidaying and the budget restrictions of those who do, “the number of people travelling has fallen and everyone in the industry has noticed
Whereas previously we would have expected to see 80 holiday makers out of 100 renting a car, now the figure is more like 50
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it. However, this is not the main problem for us, as people are still travelling; what has affected us most is that a rental car has gone from being an essential item to a ‘nice to have’,” explains Ms Jones “Whereas previously we would have expected to see 80 holiday makers out of 100 renting a car, now the figure is more like 50.” To combat this, the company is offering value added products to increase revenue. In an innovative move, it will be able to provide clients in South Africa with camper vans as of the end of August, “this is something that nobody else is doing on the scale that we intend to. Camper vans are currently a specialist field that is under promoted: if you are someone who is a camping enthusiast, then you would probably know where to get a camper van, but if not you probably won’t even know that you can rent one.” The firm is trialling this project in South Africa only at first and, if it proves successful, will branch out worldwide from there. In addition to this completely new range, there are also a range of budget cars now on offer and enhanced
insurance options, such as refunding excess if the driver is involved in an accident. The future for Holiday Autos in South Africa is all about diversification, “having built up a name for ourselves in the travel industry, we now want to target the consumer directly. We have bought advertising in newspapers and are engaging in internet marketing. We will also be attending the Johannesburg Getaway Show in September, meeting potential customers face-to-face and introduce them to the services we have to offer.” The final goal is gaining the same brand recognition amongst the people who want to rent the cars as it has in the travel industry, “in five years time we want to be in the situation where people think to themselves ‘I need to hire a car for my holiday – go to Holiday Autos.’” Ambitious plans indeed, but for a company that essentially founded the car rental brokerage business in Africa it is an opportunity that cannot be missed and an enterprise that is more than likely to succeed END www.southafricamag.com 51
BridginG The gap Paul Levy, Sales Director at The Bridge Group, is excited about the work they’re doing to bring commodities and companies together. Erica Wark reports on why you should be excited too. But first, a little history of the export market in South Africa is essential...
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The Bridge Group FEATURE
F
undamentally, The Bridge Group is a logistics company, and the largest exporters of container loads of materials in sub-Saharan Africa. From decades of service in this market The Bridge Group has fantastic infrastructure and facilities, strong financial backing, it is the perfect partner to enable smooth trafficking of materials out of, and in to, South Africa. The Bridge was the first entrant to the export market, considered a dangerous investment back in the 1980’s, when the Rand was stronger than the dollar, and thus
The major force that is The Bridge Group eliminates that ‘fear of the unknown’ and thus clients come time and time again to manage this risk the economy was dominated by imports. At that time people were buying everything they needed from the rest of the world, producers within South Africa felt they simply couldn’t compete. One man had a different vision though. In order to compete in South Africa at this time he had to go against the flow of what everyone else was doing, as a man of straw, with no financial backing, but he wasn’t about to let any of that stop him. When Adam Kethro founded The Bridge Group in the 1980’s he took great care in observing existing logistics in the country…. Cargo moved from the interior, following a corridor where road and rail were the only options. Infrastructure was quite poor at this time; 10 years before South Africa had a democracy no-one wanted to invest infrastructure which would better serve www.southafricamag.com 53
The Bridge Group FEATURE
the people who took over. Moreover, even in the first 10 years of democracy there was a delay where no work on infrastructure was undertaken either. Taking this into account, Kethro decided that to put more trains on an existing track had got to be easier than building an entire new road. It may sound logical to us now, but at the time people thought he was mad use rail, in fact Kethro faced huge opposition against the very concept becoming involved in exporting…hard to imagine now, with an export based economy in South Africa. Determination unshaken, Kethro maintained his endeavours. Predicated on the idea that rail would be the only viable option for future volumes of export, Kethro bit the bullet and built an inland terminal. It is still
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unusual for a logistics company to own its own plants, but taking this leap from 3rd party to asset owner vastly changed his profile. Luckily for South Africa, Kethro’s trailblazing work in the export and logistics arena meant that industrialized Africa was given the potential to keep up with the rest of the world and compete in the export market. Thanks to him, The Bridge Group also hold the corner in this market, being the only people in South Africa which shuttle materials from Zambia to Johannesburg, then on to Durban. Carrying everything from Copper, to nickel, cobalt, cotton, tobacco, chrome, manganese, zinc…. There are now 5 trains running each and every day to Durban Port, the predominant export hub.
Online Electrical has emerged from a group of dedicated people who feel there is a need for a service driven electrical supplier both within our local market and those outside our borders. Our staff has been handpicked for their knowledge in the electrical industry and will indeed be able to offer you both the correct products and advice. Online Electrical is a service driven electrical distribution company and we look forward to being able to satisfy all your electrical and tooling requirements, ranging from domestic products to specially designed panel requirements.
contact details:
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Competition? Having witnessed the successes of The Bridge Group, other companies have of course tried to enter the market. However, any client will confirm that The Bridge Group is in a different league of customer service. There’s no avoiding the fact that business can get risky, but even when things ‘go wrong’ and money stands to be lost, The Bridge Group will stand by you to fix it, and get things back on track. All businesses face financial risk, and there is no ignoring the fact that there is fear and uncertainty for foreign investors or organisations wanting to source materials from African or South Africa dealing with ‘unknown’ businesses. There is a trade risk, and so as a rule clients are more comfortable with local companies moving materials on their behalf, companies with people who know how to manage the risk. It can certainly be an expensive game to play, but this legacy of bravery in business, responsibility and reliability for customers is the reason that so many people use The Bridge Group today.
Featured Products - Switchgear - Cabling - Lighting - Panel building - Tools Online Electrical is a company dedicated to offering our customers service beyond the norm.
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So in this world of risk, why is The Bridge Group a safe bet? You will be working with dynamic people, with a wealth of experience and real dedication: Core to an understanding of the Bridge Group is the unique Bridge Culture, which prides itself on flexibility, adaptability and above all, urgency in everything that we do. We have groomed like-minded people who live and perpetuate the spirit and culture of the Bridge Group and to date, we have a staff compliment of 750 employees. As a privately owned enterprise, shareholding in the Bridge Group serves as a motivator for its management and staff: Who are empowered to grow the businesses in which they have a stake. Bridge people pride themselves in dedication to enhancing and developing the Group through strong alliances with our customers and suppliers. The result of this effort and culture is that people choose
The Bridge Group FEATURE
presence allows it to take advantage of the increasing movement of capital between emerging markets and to facilitate trade flows. The strategic partnership of the two largest banks in Africa and China, Standard Bank and the Industrial and Commercial Bank of China (ICBC taking a 20% stake in Standard Bank), offers significant co-operation benefits and new capacity for growth in the years ahead. To look at strategically how the to do business with Bridge. The Bridge company operates, it breaks down to Group is a premium supplier of choice in the 3 sections: industry sectors it services. 1. African trade: As explained, this is the long term playground of The Bridge Group The Bridge Group holds a well earned 2. Importing: A new focus for The Bridge reputation for reliability and strong financial Group, the aim being to fill manufactured backing, the reputation that it has built has products on to those same vehicles for the attracted investment. 1 July 2008 marked return journey, with fewer empty legs this the beginning of a new era for the Bridge means it becomes cheaper for both parties. Group, when Standard Bank Private Equity 3. Trading Businesses and Finance acquired a 30% stake in the business in Businesses : The brand new Bridge terms of a Management Buy Out. The Group baby, which MD Paul Levy is so transaction was facilitated by Standard excited about! Bank Private Equity in order to assist the management of the Bridge Group to Levy explained to me that, at present, 60% of increase their equity stake in the business. all exports are going to China, and in order for the Chinese to work with Africa it has been Standard Bank is a global bank with African necessary to overcome a few difficulties; in the roots. It is South Africa’s largest bank, main, how they pay for materials. The crux of distinguished by its extensive operations in the matter is: clients are happy to pay once on 17 African countries. Outside the African the materials on the vessel at port. However continent, Standard Bank Group operations the African/South African sources producing span to 21 countries, with an emerging the materials don’t want to release from their market focus. Standard Bank’s growing global plants until they have had payment. 56
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Levy’s section of the company now bridges that space in between. The Bridge Group finance that risky distance, making business possible. In practice customers have already proven to be very happy with this; especially since The Bridge Group have had their allegiance with the bank! The risk The Bridge Group takes on your behalf is a measured and tempered by the wealth of experience within the company, allowing you one point of contact, ease of doing business, and peace of mind over your business transactions. This new service further differentiates The Bridge Group from any competitors. The major force that is The Bridge Group eliminates that ‘fear of the unknown’ and thus clients come time and time again to manage this risk.
companies, and India appears to be a strong new emerging market. The footprint of The Bridge Group will expand, aiming to go through eastern Africa too, Uganda and Kenya, cash allowing. The funds that The Bridge Group make from brokering risk and transporting materials will be used to seek to dominate rail, to build and dominate new corridors for business. Though the history may have been complicated, and the endeavours of The Bridge Group vast, the priorities for The Bridge Group are, quite simply: To establish new corridors throughout sub-Saharan Africa, particularly into eastern Africa and south eastern Africa. As always, to secure volume through its facilities
The future for The Bridge Group
If you’d like to make use of the existing network, or perhaps help make these new corridors possible, then please visit www.bridgeshipping.co.za for more information END
While China currently contribute the biggest share of business by far, The Bridge Group do also work extensively with European
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A business f or t h e
people Ingrid Masson, CEO of haulage company Haulcon, speaks to Jane Bordenave about what drives her passion for this industry and how her attitude to business sets the firm apart.
I
n 1996 Ingrid Masson, CEO of Haulcon, decided to found her own haulage company. Having started off with just two vehicles transporting coal, the firm now has 60 trucks and major international clients in the mining, cement and chemical industries. Her efforts in building up the business over the past 14 years has paid off not just through growth but also through recognition of industrial excellence: In 2009 the organisation was awarded the Top Female Empowered Business in the Transport Industry by Impumelelo Magazine, which was followed this year by CEO magazine recognising Ms Masson as the Most Influential Woman in Business and Government in the Logistics, Shipping and Transport Division. The company moves powder products, including cement, paint, fly ash, slagment and ingredients for soap. The journey to the top has not been easy though, as Ms Masson explains, “within four months of my establishing the company we had a major setback when one of our trucks was in a collision with a train. Luckily the driver was ok, but the vehicle had to be written
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Haulcon FEATURE
of, meaning we lost 50% of our business. However we bounced back and by 2006 we had grown from two lorries to seventy tankers.” This growth was entirely self financed and was achieved through some very prudent financial management; Ms Masson’s brother, the financial director, has strict policies in place that plough the profits back into the company, rather than spending them unnecessarily. Additionally, it has a very aggressive depreciation policy that is 20%-30% ahead of the industry norm. These two policies jointly enabled the company to grow rapidly while successfully managing risk. This financial policy has stood the company in good stead during the recession. While Haulcon didn’t lose customers it did lose business volume, due to its clients experiencing the same difficulty. As a result of its earlier financial management, the firm was able to sell 20 of its 80 vehicles and redeem the capital, relieving the pressure brought by the downturn, “looking back on everything, we were lucky to have in place the financial systems that we did; reinvesting our profits in the business and managing risk were a big saving factor during this period.” Before establishing Haulcon, Ms Masson worked in product development for Woolworths. It was during her time here that she developed some of her core business values, “the whole concept of value for money, customer service and providing people with worthwhile products at prices that make sense made a very big impression on me.” However, it was her next move that really set her on the path towards founding Haulcon, “I had been working in Cape Town, but I wanted
to return to Johannesburg to further my career. While I was looking for something else, I took a job at the transport company where my father worked,” she says, “I was a bit reluctant to take the position, because I didn’t really think that the transport industry was the right kind of image for a young woman. But when I started work there I enjoyed it so much and I thought there was a lot of scope for the female touch in the industry.” This female perspective, and making use of feminine and masculine attributes, is something that she considers to be a key part of her business, “I came to realise that having a balance between men and women in an organisation is a huge advantage,” Ms Masson explains, “We do things differently and both sexes bring a very exciting perspective when we work together. Men are aggressive thinkers and make great strategists, whereas women are fantastic at implementation and sustaining those strategies in a meaningful way.” Haulcon takes social responsibility very seriously and in 1998 was one of the first businesses to start a black empowerment entity. Through that entity, it was then able to start working with larger national companies such as Eskom and Murray Roberts. “Making sure that we have an even distribution of wealth and a strong middle class where we are able to educate our children, look after the less privileged and the aged has always made a great deal of sense to me,” says Ms Masson, “this has to be the way for any society to grow and really be proud of itself. It is the way for South Africa to become stronger, like Australia, America and Europe. If any business wants to become stronger, they need to recognise and work towards this too.” As well as Black Economic Empowerment, training is another
having a balance between men and women in an organisation is a huge advantage
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Haulcon FEATURE
important part of the company’s commitment to corporate and social responsibility. Ms Masson sees training and skills development as a vital part of Haulcon’s business and as a way to empower people to grow and to further their own careers. One of the success stories in this area is the company’s chief accountant, who worked her way up from operating the switchboard to her current position, “she just developed herself into an amazing resource and we receive compliments about her all the time. Our HR manager also started low down in the company and we are now sponsoring her tertiary education to become qualified in this area. If people have the right attitude and the passion grow and develop themselves, then we will mach that enthusiasm and take them as far as they want to go.” The firm has an equal commitment to the environment as it does to its customers and personnel, “right when we first started we understood that the environment is important for a sustainable future. As such, we started 60
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sponsoring environmental organisations, such as the Endangered Wildlife Trust, which is a very prominent and meaningful organisation,” says Ms Masson enthusiastically, “internally, we have practices to ensure that we are environmentally efficient, such as dust control and using the best available technology to reduce fuel emissions. It is a very important consideration of ours.” Looking to the future, Ms Masson wants to bring meaningful growth to her company that is fuelled not just by management but also by the employees, “they are our greatest assets and with another equity investment we can go anywhere the team wants,” she says, “we have overcome the economic problems of the past three years well due to our solid financial practices, involvement with serious and meaningful clients and with staff who love what they do. It’s a recipe that has worked very well for us over the past 14 years and one that we will seek to keep in place as we move our company forward to greater growth and future successes.” END
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The Best Ingredients TM for a R A U R S K T
Erica Wark speaks with Laura Nel, Head of Corporate Communications for Johnson & Johnson (Pty) Ltd, about both the legacy and future of this trusted household trademark.
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Johnson & Johnson FEATURE
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midst the finance-focused era of the industrial revolution one company published a credo which, strangely, did not place the bottom line as the first consideration, but instead; firstly care for their customers, secondly care of their employees, and thirdly care of the community. It was said that if these three areas were attended to, then it was founder General Robert Wood Johnsons belief that the bottom line, and therefore the shareholders, would be well taken care of too. For Johnson & Johnson (Pty) Ltd this credo has not just been a wall hanging, but a business management system, and certainly it appears this is a blueprint for success; having experienced annual double digit growth for the last number of years, and nearing their 80th anniversary of business in South Africa this September. So, my question to Laura Nel was; what ingredients are needed to make a successful trademark like Johnson & Johnson? Having begun manufacturing in South Africa in 1930, Johnson & Johnson has a world class manufacturing plant in East London, as well as a pharmaceutical plant in Cape Town. Both manufacturing sites have capacity enough to supply the entire Sub-Saharan Africa region, and, with the investment in facilities, so too comes an investment in people and the community. In the economically depressed area of East London, Buffalo City, Johnson & Johnson are creating opportunities for employment in their manufacturing facility. With over 240 people already employed there, and a further 300 nationwide, Johnson & Johnson have been steadily recruiting over the past few months at
the East London location, with more jobs set to be made available, going right into 2011. The J&J Consumer business in South Africa comprises four key business units JOHNSON’S® Baby (including all the well known, loved and trusted Baby toiletry products) BEAUTY – (includes the brands RoC®, NEUTROGENA®, CLEAN & CLEAR®, AMBI® and JOHNSON’S®) CONSUMER HEALTHCARE – (brands like SAVLON*, STAYFREE®, o.b® Tampons and LISTERINE®) OTC – (Over-the-Counter) (including trusted brands BENYLIN®, REHIDRAT®, SINUTAB®, TYLENOL® IMMODIUM®, REGAINE®, ANUSOL®) As Johnson & Johnson bring more product lines into operation at the East London facility they are also looking at their distribution model and how they can reach further to untouched markets and communities. One way in which Johnson & Johnson are already going about this is through education. As a company they are strong supporters of training and education; this is for staff, healthcare professionals and consumers. Johnson & Johnson are mindful of the needs of the emerging market developing through economic empowerment in South Africa. As a way of reaching this new market, the Company have been providing educational sessions out in communities. A pilot programme has been launched in townships in South Africa with a particular focus on the subject of infant skin care. The feedback is extremely positive, with people being able
Johnson & Johnson are mindful of the needs of the emerging market developing through economic empowerment in South Africa
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Johnson & Johnson FEATURE
to experience the quality of the products for the first time, and also understand why it is important that they use products specially formulated to meet the needs of infant skin. Obviously this new market has its challenges, price being a big factor, and in an effort to reduce prices this is obviously an area where we might expect to see quality ingredients go down in quantity. Then again, perhaps unsurprisingly for a company with the proud reputation of Johnson & Johnson, this is one company who is not prepared to compromise on quality. Instead time and money have been spent internally to repackage existing product lines into trial sizes and more affordable formats so that more people can benefit from access to them. Johnson & Johnson (Pty) Ltd also have a legacy of innovation with many products also developed specifically for the South African market, such as the SHOWER TO SHOWER® brand, JOHNSON’S® Baby Aqueous Cream and JOHNSON’S® Healthy Skin Tissue Oil a skin conditioning product which promotes healing of skin scaring. Do look out for new innovations coming to the shelves from this trusted brand, as Johnson & Johnson are proud to boast a very dynamic new product development pipeline – aimed at delivering quality products to their diverse consumer base. I, for one, know that I would feel confident trying any new innovations that come out of Johnson & Johnson, it feels almost an instinctual reaction, but it’s based on decades of quality brand reputation. As Nel proposed, Johnson & Johnson is more than just a trade mark, they hold a Trust Mark and the ingredients for this are years of dedication to quality, listening to the consumer to meet their needs, teams of passionate people employed to make the products, and also the best quality suppliers. Johnson & Johnson are quick to recognize the significance of these contributing areas, and therefore I know we can come to expect nothing but continued high standards in future. 64
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For more information on Johnson & Johnson products please visit: www.jnj.com /www.jnjsouthafrica.co.za Moreover, if you would like to see an example of the Johnson & Johnson philosophy of care for the community in action, then also please visit www.barefootball.com and show your support for this fantastic endeavor. Johnson & Johnson (Pty) Ltd are founding partners of the Barefootball initiative which resonates well with the Company’s Credo philosophy. Your support will mean two areas close to the heart of Johnson & Johnson will be addressed; 1. You will tackle the issue of post-consumer waste 2. You will provide a way of creating sustainable income for the unemployed And to achieve all this, all you need to do is buy a football or badge! END
Bowler Plastics (Pty) Ltd is incredibly proud of its 25 year association with Johnson & Johnson (Pty) Ltd South Africa For more than 25 years Bowler Plastics has supplied innovative, attractive and functional packaging solutions with quality standards that are essential for this market. we look forward to our continued partnership into the future.
Bowler Plastics manufactures and decorates quality plastic extruded and laminate tubes, jars, bottles and closures for the toiletries, household, beverage, food and pharmaceutical markets.
Bowler Plastics (Pty) ltd
Partners in Packaging solutions
For more information call +27 217042223 or visit: www.bowler.co.za
SELF-MADE
S U C C E S S It’s not just the customers of Mica who do it themselves – the co-operative company has been building its own future since it became independent in 2009, Ruari McCallion reports.
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Mica FEATURE
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erhaps the most significant event in Mica’s 27-year history took place in October 2009, when almost all its members bought shares in the business and it became an independent co-operative. “The company’s previous owner made the decision to focus on what it sees as its core business and to dispose of its non-core assets,” said Clifford Buchler, Managing Director of Mica Investments (Pty) Ltd. which is the trading arm of Mica Holdings Limited “We currently have 146 stores and by the end of the year we expect to have in excess of 150. Our stores are spread across the country in roughly equal proportions to regional
economic strengths.” The store owners are also the owners of the company; they run their own businesses – the stores themselves – and leverage their own business strengths through co-operation. Mica Investments is the conduit of relations between the store owners and the company’s suppliers. Mica supplies trade customers through its Mica Build stores, but its core business – certainly in the current economic situation – is DIY and residential hardware. The stores come in three sizes segmented to suite the market: Mica Paint & Hardware is the ‘expert around the corner store’, targets home owners and DIY enthusiasts the convenient, local source of necessary hardware, consumables and advice. Mica Home Warehouse is a larger format store and offers a wider range and supplies all your DIY, hardware and home improvement requirements; Mega Mica is the largest format stores with the widest ranges “One Mega range under one Mega roof – pretty much everything from a hammer and bag of nails on up”. “The stores range from 450 sq m to 4500 sq m,” said Buchler. “We are not ‘big box’ retailers – we feel that the bigger you are, the harder you fall, in that scenario. We see our growth coming from towns, where we can open 800 sq m stores.” The real ‘Mica difference’ is service. The store operators, as owners of their own businesses and the company itself, are truly committed. In contrast to some DIY retailers, Mica stores offer knowledgeable staff who can give customers valuable advice. And there’s more. “Compared to other co-ops in this business, we offer a wider range of home décor, garden and DIY products,” he continued. “Paints are our biggest line, with power tools, electrical equipment and builders merchandise following.” The last group has suffered during the economic downturn, as builders themselves have run short of work. The upside is that small activities, domestic DIY in particular, has grown. He says that traditional building www.southafricamag.com 67
Mica FEATURE
is not Mica’s core business; more the ‘informal artisan’. The change in ownership last year was a big upheaval – in effect, Mica is a new business that has 27 years of history behind it. The previous few years had seen a lack of investment and commitment to the brand, something the new regime is determined to remedy. “In Years One and Two, we are focusing on our existing members and our supplier base,” said Buchler. “We have an aggressive expansion strategy, either with the conversion of other brands’ locations or with new sites. We have a strategy for sub-Saharan Africa but there is a lot of leverage yet within the membership base, so we’re focused on the current situation.” The objective is to ensure central support, lines of logistics and both supplier involvement and marketing activity are strong and reliable. There are no ‘corporate-owned’ stores within Mica – that approach has inherent conflicts of interest and does not go down well with the members. So Mica Investments focuses on supply chain, logistics and marketing. “We have partnered with ‘best of breed’ suppliers in South Africa and with two major wholesalers, who have helped us to fill the gap between self-ownership and integrated business,” he explained. “They give us excellent support and service. Our members don’t have to buy massive quantities in order to get good discounts. They can get three deliveries a week, rather than one, for example – which means they don’t have to invest in unnecessary storage space. Our largest paint supplier provides us with our exclusive brand – Colour Co. We have our own range of trademarks of exclusive brands, including Escape for outdoor and camping goods; Elements for seasonal needs; and
the Basix range for plumbing and other applications – and we’re going to tender shortly for up to five supply contracts for them.” The company also works on ideas with Mica in the UK and Mitre 10 in Australia and New Zealand. Getting the absolute rock-bottom price is not the sole objective. It’s the combination of price, support, good deliveries and good payment terms that is the desired combination – especially in tough times. The head office function has been slimmed down, which means less overhead for the members. Mica has partnered with a specialist shopfitting company, rather than owning its own operation. “We used to have over 100 support centre team members; we now have just 18,” Buchler continued. “By keeping the model low, we don’t have to push the members for large rebates. We do deals with suppliers; some are very low margin but compensated by volume. We have invested in a new IT business system, which gives the membership clear information on what they have purchased and how much they have earned. It means they don’t have to get in with different supplier methodologies – we do it for them. We see ourselves as a service and support centre – that’s our model.” The future for Mica will see continued expansion – up to around 500 stores, with a growing market share. It has already been voted the most popular hardware brand in South Africa over the past three years and it wants to stay that way. And to strengthen itself, by leading into new areas, such as some ‘green’ ideas that are already established in the UK and Europe. The classic symbol of a bright idea is a lightbulb; Mica will be offering energy-saving versions in the near future. Its adverts already have a green background – Mica has clearly signposted its way ahead. END
The real ‘Mica difference’ is service
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T h e M idmar B lend –
Quality service
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Sweet and sour, high minded cynicism, a hopeful pessimist‌ is customer service and competitive pricing just another oxymoron?
Midmar Liquors FEATURE
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shopping survey shows Canadians abandoning quality service in favour of low prices. In recessionary times many share that sentiment. But here in South Africa, Midmar Liquors CEO George Naidoo is showing that a quality bargain need not be in lockstep with basement service; that best deals can be served with expertise and customer attentiveness. It’s a formula that has grown a dynamic business in a razor-edged competitive sector. George opened his first store in the Cape Town suburb of Parow in 1982. He was the first Black to launch into the liquor trade and he had a staff of four. And in a sector dominated by the selfservice ethos he set out with a novel - many would say contradictory vision: give the public quality wines, spirits and beverages at competitive prices in an informed and shopper friendly setting. Eighteen years on and Midmar Liquors has 34 stores throughout South Africa and a staff of 500. “Back at the beginning it was very hard for non-white people to get a liquor licence. But there was little competition within the sector and margins were a bit higher,” says 29 year old executive director Theo Naidoo. “Now competition is a lot fiercer. My father saw a gap which he wanted to exploit and he has succeeded in doing so. “We are the only Black-owned liquor chain company in South Africa, and it’s been run by my father since day one. And we’ve been a Black owned company since inception and have remained so. I don’t think we’ve punted this aspect enough. “ The Midmar shopping experience is distinctive, not least in a country where customer service expectations are modest. “We start serving the customer from the moment he jumps out of a car in the parking lot. He is approached and asked if he has any returns – empties - and then on right through the store, advice and assistance are on hand
from a staff trained in-house and moulded around the concept of quality customer service. When he has completed his shopping we carry the goods out to his car. “Customers appreciate the extent of this service, its detailed and personal nature. That’s why they keep on coming back. Everybody is made to feel special.” How did competitors react to George Naidoo’s customer-first initiative 18 years
Our strategy going forward is to expand and keep expanding. That’s something we are not going to give up on ago? “At first it was a bit slow because my father needed time to build the business up. But we had very aggressive pricing and customer service to match, and within three to six months he started to see results. “Initially the competitors were not very happy. There were complaints to suppliers – who themselves welcomed a lively new entrant and something different happening - questioning our pricing structure. A lot www.southafricamag.com 71
Midmar Liquors FEATURE
of them wanted to know how we could get such good prices and so forth.” Surprisingly perhaps the Midmar example has won few sector followers. “From their side not much has happened on customer service, but on our side it is something we constantly strive to improve. “And if you compare our retail industry with prominent ones across the world, we in South Africa are not very customer-orientated. Not at all in fact. But this is what we at Midmar want to change and especially in our industry.” Meantime the market is seeing another and dramatic development - the entry of major retailers. Everybody it seems wants to come to the bottle party. “In the past big retailers weren’t allowed to have liquor stores, but our big retail players like Pick n Pay, Woolworths, Checkers, Shopright and the Spar Group are all going the liquor store route now. “Between them there’s probably close on 2,000 applications for liquor stores across the country and it’s getting very competitive. But having said that I don’t think right now they have proper knowledge of the industry, nor anywhere near the range we have. It’s a very limited range in fact, and their pricing is out compared with us.” Midmar’s response is to continue making itself the store of choice. “So we have these destination stores which we believe our customers will continue to frequent. With our buying power we can definitely be more competitive than anybody, even the likes of major supermarkets. “We’ve got a very big footprint in the Western Cape where most of our stores are located. In Johannesburg, KZN it’s more of a fledgling but we are still doing a serious volume in those stores.” Midmar has four stores in Johannesburg with another opening shortly and seven in Durban with two more imminent. Western Cape expansion will continue. “Overall we’ve identified those areas where we want to 74
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In South Africa there is something like an oligopoly, with the majority of brands sold in liquor stores concentrated in few suppliers expand “Our whole strategy is looking for destination stores where people make a point of looking for Midmar as opposed to a competitor or one of the retail stores like Pick n Pay and so on. A place where they can have a good shopping experience, have a wide selection of wine and retail spirits and everything is competitively priced. ”Our strategy going forward is to expand and keep expanding. That’s something we are not going to give up on.” Within the Western Cape Midmar is the biggest mover of Brand House products – the joint trade name of Diageo, Heineken and Namibia Breweries, combining the sales, marketing and distribution of some of the world’s top premium brands – and second or third in the whole of South Africa.
KWV
de Bruxelles 2010. Brandy makers from all corners of the globe enter this international competition yearly. Since its first release in 2006, the KWV 15 Year Old has won two highly regarded trophies. This includes its success in 2007 when it was awarded Best Worldwide Brandy at the prestigious International Wine & Spirit Competition (IWSC).
KWV – Awarded with top accolades. One of life’s true pleasures, brandy, is a timeless beverage and is as popular today as it was three hundred years ago. Brandy is celebrated worldwide with brandy masters continuously working on perfecting the art of brandy making.
K
WV, established in 1918 as a private wine co-operative, has not only become a leading South African alcoholic beverage brand, but has also made great headway in the international wine and spirit industry serving over thirty markets globally. Renowned for creating world class brandies the KWV House of Brandy, situated in Worcester, is home to 120 copper pot stills making it the biggest of its kind in the world. The talented brandy masters at KWV distilled their first brandy in 1926 and today with Chief Brandy Master Kobus Gelderblom at the helm, the quality of KWV’s brandies are reinforced by numerous awards received. The KWV 15 Year Old won a Gold Medal for the second year running at the Concours Mondial
“In 2008 KWV released a Limited Edition KWV Founders Reserve Brandy. This brandy celebrated KWV’s 90 years of existence. Only 1918 bottles, each numbered for collection purposes were produced”, says Gelderblom. This premium brandy won a gold medal for its superior taste and quality at the 40th anniversary IWSC in London in 2009. KWV 20 Year Old, the oldest within the premium portfolio of brandies, won a gold medal for its superior taste and quality at the 15th anniversary International Spirits Challenge (ISC) in London in 2010. “We are extremely proud of our quality brandies and believe that these awards show our commitment to creating world-class brandies”, concludes Gelderblom.
(KWV encourages consumers to enjoy KWV products responsibly. Products are not for sale to persons under the age of 18) www.southafricamag.com 75
Midmar Liquors FEATURE
A major importer of Scotch whisky, Midmar also has its own brand labels, Royal Castle and Three Scotsmen the two biggest. “They’ve been a phenomenal success, quite unbelievable. We started with one container in six months and this year I think we’ll top sixty containers. People are looking for quality whisky at a good price, and these brands are selling more in our stores than the more renowned brands like Bells and J&B. Quite remarkable. “In South Africa there is something like an oligopoly, with the majority of brands sold in liquor stores concentrated in few suppliers. Basically you can count on one hand the guys who are running the South African liquor industry. If you can’t get a big brand from one supplier you can’t get it from anybody else. “It’s very concerning, something you have to deal with and I think over the years we’ve dealt with it pretty well. With wine of course there are tons of suppliers, hundreds of them.” In a rapidly expanding and competitive sector, Theo Naidoo identifies three main challenges. “You’ve got to be very careful on location and so forth. A lot of major shopping centres around the country have anchor tenants which tend to be your Pick n Pay, Shopright and so forth. “So if you have a liquor store within such a complex, then when your lease is up for renewal, a landlord tends to give first preference to the anchor tenants. That’s because they all want to open liquor stores. “So you have to be careful you don’t build up a business, and at the end of the day not be given a lease. That’s number one. “Number two – especially in the Western Cape – the rents are now very high, and you have to be careful not to get into a situation
where it ends up costing more than you can afford. In this business margins are small and you’ve got to work on big volumes. “Then there’s a lot of regulation and red tape in regard to getting a liquor licence… you can wait for approval for anywhere between a couple of months and two years. We have a roll-out plan but because of this we can be held up for quite a while, hindering our growth.” Alcohol abuse is a social challenge of course, and one that tends, says Theo Naidoo, to be concentrated in the more developing areas “where there are other and even more pressing problems such as unemployment and poverty. “We have got to sell alcohol responsibly, we’ve always believed in that and we are part of ARA – the industry Association for Responsible Alcohol Use. “Obviously it’s very difficult to control because you do not know the ultimate destination of the product. But we try to be as responsible as possible and are involved with various committees and development projects trying to uplift communities where they have issues like alcohol abuse.” And responsible drinkers may echo happily the words of Goethe - “Wine rejoices the heart of man, and joy is the mother of all virtues.” And for Midmar customers, joy is to be found at a discount and with personal service. “Our policy is shopping at a place where you get value for money together with a service that you don’t associate with value for money products,” says Theo Naidoo. “We offer a top service, open 12 hours a day, six or sometimes seven days a week, and no competitor opens these hours. We are there for the consumer and we want them to keep coming back.” And his preferred drink? “I’m a whisky on the rocks kind of guy. It has to be Scotch.” END
For Midmar customers, joy is to be found at a discount and with personal service
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M OTOR I N D USTR Y
Nico Vermeulen, CEO of NAAMSA, The National Association of Automobile Manufacturers of South Africa, speaks with Erica Wark 78
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NAAMSA FEATURE
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Programme (MIDP) with the Automotive ave you ever had an experience Production Development Programme (APDP) in business where you’re At present the MIDP focuses on facilitating struggling to make your voice and promoting exports of South African heard on issues that affect you, produced autos and components, the key or where you feel like you’re banging your differentiators of APDP are as follows: head against a brick wall? APDP will support and incentivize: Well, if you’re in the automobile industry in additional localization, improved facilities South Africa then you have an ally on your side and service throughout the automobile that can help - NAAMSA. value chain, better infrastructure, more NAAMSA is the definitive source of employment resulting in higher output for information about the motor industry in subthe component industry Saharan Africa. With 75 years experience in Employment Targets: The target is for this role, it is committed to the principles of significantly higher employment currently free enterprise, and the interest of continually standing at some 32000 personnel, with strengthening and building the South African estimates that it could rise to 50,000. Runs Automobile industry. to 2020, and in component industry the Every month NAAMSA makes the headlines employment ind will go with its release of the up from 60000 – 115000 latest new vehicle sales Export business: figures, which have NAAMSA, established in 1935, will continue to be an become recognised as is an association representing important part of activity significant barometers of vehicle manufacturers and and operations the country’s economic foreign distributors The APDP really raises activity, consumer trends the bar for automobile and general fiscal health. The NAAMSA membership base now includes major importers manufacturers and As Nico Vermeulen stated and distributors of new vehicles distributors. It has “NAAMSA’s compilation as well as local manufacturers been signed off by the of sales statistics is a and assemblers, making it the right people and will be sophisticated operation, on pre-eminent organisation for in force come January a par with similar motor all franchise holders marketing 2013; MIDP will run to industry and marketing vehicles in South Africa the end of 2012. information gathering bodies in the industrialised NAAMSA provides a platform for policy negotiation with So, what will nations of Europe and Government and Private it mean for North America” sector parties. Working consumers, and groups are already in place, Next destination: what will it mean tackling each of the major NAAMSA is now going for the industry? issues facing the industry. As This will broaden South through major changes in some examples this can range Africa’s component line with the transformation from; local content, to vehicle supply chain and of the industry. crime, to safety legislation, manufacturing capacity It has currently to the introduction of CO2 and will increase approved a new emission taxes at120gs per the value of vehicles programme which is to km, which is a prickly subject from 40% to 70% - an upgrade the current Motor for manufacturers at present incredible result! Industry Development
NAMSA TO DATE:
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VISION An institution of excellence in international trade administration, enhancing economic growth and development.
MISSION ITAC aims to create an enabling environment for fair trade through: l efficient and effective administration of its trade instruments, and l Technical advice to the dti and Economic Development Department
COre ValueS The Commission is guided by the following set of values:
Integrity Trust Accountability Commitment info@itac.org.za | www.itac.org.za
NAAMSA FEATURE
NAAMSA’s publications: There are many ways that you can gain access to the most sophisticated vehicle sales reporting dispensation in the world. A good proportion of NAAMSA’s business is its reporting and data facilities. It also offer analytical tools, such as a sophisticated ‘What If’ software application, fueled by their extensive database. Membership is available in a variety of packages, from vehicle manufacturers, importers, full and associate membership. From speaking with Vermeulen it is evident that, as he says, “The figures are far more detailed than the summaries carried in the general media suggest...” But, as a quick dip into NAAMSA’s most recent review – the indication for 2010 as a whole is positive. Even while accounting for some moderation in the second half of the year it is still projected that there will be a 15-18% rise in business overall compared to last year. Undoubtedly the
domestic recession has impacted the industry, however November 2009- January 2010 saw a shift in patterns, and there has definitely been an upturn, with exports due to grow by around 40%. A sign of the times is the new NAAMSA Export Division, as the industry reaches for overseas markets. You can find in-depth analysis and graphs in their web pages, or contact NAAMSA directly at the address below, which should, in any case, be your first call if you are new to the South African market and serious about doing business in the motor industry here. Look out for NAAMSA at events such as the Johanesburg Motorshow, which they own and is held every two years, next due October 2011.
It is still projected that there will be a 15-18% rise in business overall compared to last year
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Why wait that long to speak with them? Please visit www.naamsa.co.za for more information on membership, analysis tools or services. END
The International Trade Administration Commission (ITAC) was established through an Act of Parliament, the International Trade Administration Act (Act 71 of 2002), which came into force on June 1, 2003.
VISION
An institution of excellence in international trade administration, enhancing economic growth and development.
TMISSION
he aim of ITAC, as stated in the Act, is to foster economic growth and development in order to raise incomes and promote investment and employment in South Africa and within the Common ITAC aimsUnion to create an enabling environment fair trade through: Customs Area. This is done by for establishing an l efficient and effective administration of its trade instruments, and efficient and advice effective system for the administration l Technical to the dti and Economic Development Department of international trade subject to this Act and the Southern African Customs Union (SACU) Agreement. The core functions are: customs tariff investigations; trade remedies; and import and export control.
COre ValueS
The Commission is guided by the following set of values:
TariffIntegrity Investigations
The objectives Trust of the Tariff Investigations Unit are to promote, in a complementary manner, Accountability domestic production, job retention and creation, and Commitment international competitiveness. info@itac.org.za | www.itac.org.za
Increases in customs duties are considered for the purpose of granting relief for domestic producers that may be experiencing threatening import pressures to adjust and restructure so that in the medium to long term these industries could become internationally competitive without any support in the form of customs duties. This is made possible by the fact that there is a difference between the applied rates and the WTO bound rates. The WTO bound rates act as a ceiling beyond which customs duty increases cannot go. Tariff support is tied to conditions related to economic performance over time and is reviewed after a specified period. Apart from industrial policy considerations, in terms of which tariffs on upstream industries will be reviewed to lower input costs into labour-intensive downstream industries, a reduction or removal of duties is considered on a case-by-case basis, in instances where goods, (consumption goods, intermediate or capital goods) are not manufactured domestically or unlikely to be manufactured domestically. Linked to customs duties as a trade policy instrument are duty rebate and drawback provisions for products for which detailed separate tariff lines are impracticable for tariff administration purposes. The primary aim of these provisions is to provide a customs duty waiver and therefore an availability at world competitive prices of products that attract duties but are not produced or insufficiently produced domestically as an industrial or agricultural input for certain critical applications, as a capital item, or as an agricultural product for consumption. Rebates
and drawbacks form a key pillar of certain industrial development programmes, such as those for motor vehicles and textiles and clothing.
Trade Remedies
ITAC is responsible for conducting investigations of anti-dumping actions, countervailing duties to counteract subsidisation in foreign countries, and safeguard measures when a surge of imports is threatening to overwhelm a domestic producer, in accordance with domestic law and regulations, and consistent with WTO rules. These instruments are a critical government intervention to retain jobs and promote investments. Relative to the other two trade remedies, applications to ITAC, in the main, are for anti-dumping protection. In the context of international trade, dumping is defined as a situation where imported goods are being sold in our market at prices lower than in the country of origin. If such discriminatory pricing is causing material injury to domestic producers of like goods, ITAC may recommend the imposition of additional duties on imports, duties that are equivalent to the dumping margin (or to the margin of injury, if this margin is lower). ITAC carries out its investigations speedily and with rigour. It revised its timelines for finalising its investigations which has resulted in significantly shorter completion periods, on average within 10 months of the date of initiation.
Import and Export Control
Import and export control measures are applied to enforce health, environmental, safety, and technical standards that arise from domestic laws and international agreements, such as the Montreal Protocol on Substances that Deplete the Ozone Layer, the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, and the 1988 UN Convention Against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances.
For more information – Email: info@itac.org.za
www.itac.org.za
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PEP GUARDIOLA VISITS FOOTBALL TRAINING CENTRE IN SOWETO 84
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Nike FEATURE
Nike Just Keeps On Doing It Nike is the established brand leader among international sports stars. But as Seruscka Naidoo tells Colin Chinery, in South Africa Nike is also out front on behalf of all sports participants as well as health and social enhancement.
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t’s the coolest accessory in international sport, the ‘must have’ aspiration of young people, and delivers the ultimate kick-butt antidote to procrastination – ‘Just Do it.’ Nike - named after the Greek goddess of victory – are brand leaders in South Africa, with product designed to help athletes achieve high performance along with an unmistakable fashion design statement. Nike is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Its iconic shoes are designed for the hard core sports enthusiast. And with more and more people taking up sport, sport shoes in this fashionable society are seen increasingly as an indispensable product. www.southafricamag.com 85
Nike FEATURE
KOBE BRYANT VISITS YOUTH IN SOWETO AT FOOTBALL TRAINING CENTRE
South Africa’s Number One brand. “Statistics show that both from retail and a consumer research point of view, we are the number one brand in South Africa,” says Seruscka Naidoo, Communications Manager, Nike South Africa. “If we look at football, our target audience is 16-19. But the 24 hour footballer also considers the brand to be super premium as well as really cool, and I think these descriptions stand out when it comes to consumer perception of Nike premium and cool.” Nike core products are manufactured overseas - China, Indonesia, USA, and with Italy an important football boot source. And while it has a number of ‘local for local’ factories in South Africa producing items such as socks and basic T- shirts, Nike’s focus is almost exclusively on design and marketing. 86
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“From a consumer’s point of view and the results of research, it always comes back to the fact that we are and are perceived to be, an international super premium brand,” says Seruscka Naidoo. “Many brands that have tried to produce an entire local for local collection have found this does not sit very well with the consumer. They are almost losing credibility. “We are an international brand with the best products available in the key macro market, and people want the same products that are available in these countries and in major cities like London or New York.”
Forefront of innovation. Nike is at the forefront of innovation says Naidoo, “and everything we do comes back to product innovation. We are a company that’s rooted in sport and we are continuously looking at elevating the innovation experience for consumers.
“For example with the football product offering, Nike collaborated very closely with the core athletes. Last year we sat down with a number of players and asked them what they wanted to see improved in football boots to enable them to become better footballers. “The feedback included issues like more traction control or a better grip. And the end result is better footwear that will make a difference in the performance of top athletes, while the consumer gets access to the same product.” A recent investment/growth focus for Nike in South Africa has been in warehousing and logistics. “With our new warehouse in Johannesburg we are able to bring in many more products available in major international cities, and get them to the retailers as quickly as possible. “Delays used to bring a lot of frustration but now with our own warehouse we can manage the quantity of products coming in to the country and make them accessible to the consumer as well.”
The consumer if key. The consumer and consumer experience are key. “Yes we are a company that produces great products but it’s how we make the product accessible to the consumers, enabling them to participate more in sport and give back to their communities. “The World Cup was a real eye opener for everyone, and there’s a lot of work that needs to be done on the ground. Sport in general must become more accessible and the youth most especially more involved. “You find very talented young players - in football and rugby for example - and they need access to great training to take them to the next level. I think that what Nike has done is pretty remarkable. We are partners with the best coaches, nutritionists, life coaches, and all this is having a ripple effect on youth development. 88
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It’s not just the elite. “Every training project we have incorporates a coach coaching programme. So you could have a three day training programme targeting 300 young footballers and also 50 coaches who with this knowledge go back to their clubs and academies and teach these fundamentals to another set of youngsters. So it is not just the elite that get exposure.” In the World Cup all nine Nike-sponsored national teams, including Brazil, Portugal and The Netherlands wore shirts made entirely from recycled polyester, each one produced from up to eight recycled plastic bottles. As a result Nike prevented nearly 13 million plastic bottles, totalling nearly 254,000 kg of polyester waste, from going to landfill sites - enough to cover more than 29 football pitches. If the recycled bottles used to make the jerseys were laid end-to-end they would cover more than 3,000 kilometres, more than the entire coastline of South Africa.
Post World Cup blues. Seruscka Naidoo says that for two weeks after the close of the competition she went into “serious World Cup blues. It was just awful. “But more importantly, as a brand we have always been very closely involved with the grass roots programmes we’ve been rolling out in South Africa over the last two years.” This is Nike South Africa’s commitment to serve as an engine for social change, one aspect of which is the new community football training centre in Soweto. The centre will give 20 000 young footballers a year the chance to develop their football talent while having access to HIV/AIDS education through football life skills programming.
Enhancing social change. “In South Africa we have a very high HIV prevalence rate, especially among the 16-24 age groups. And as a brand we have always
Nike FEATURE
reminded ourselves that everything we do is rooted in sport, and so we use sport as a platform to engage with the consumer and enhance social change.” The project has been acclaimed by leading sports stars like Kobe Bryant, TNT and Sporting News Player of the Decade 2000-2009. “While basketball is my chosen sport, I’ve been a football fan all my life. So to be in South Africa for the first time and see how Nike is utilizing sport to inspire youth and educate them around HIV/AIDS is amazing.
Enhancing life skills. “It’s crystal clear that this centre will help keep kids out of trouble, improve their game, as well as empower them with the life skills they need to live better and HIV free.” The Soweto centre is part of Nike’s commitment to the communities of South Africa dating back 15 years, and follows a recent partnership to leverage the power of
sport to fight HIV/AIDS in Africa through the ‘Lace Up, Save Lives’ campaign. With each purchase of a pair of Nike red laces, Nike contributes money to support programs offering education and medication on the ground in Africa, again harnessing the power of sport to engage youth in the fight against AIDS. Nike’s strategic focus says Seruscka Naidoo, is to continue enhancing the consumer experience. “From the retail point of view, as a brand we are one of the top retailers in the country that offers a unique in-store experience. “We will also continue driving sporting experiences for our youth, engaging with them through the trial products we have and the programmes we have to help them become better people. “Nike’s mission is to bring innovation and inspiration to every athlete in the world. And as per Nike’s co-founder Bill Bowerman, if you have a body you are an athlete.” END www.southafricamag.com 89
guest Be
Mark Jankins, Group Chief Commercial Officer at Peermont, speaks with Erica Wark about the pleasure of spending your leisure time at Peermont’s Hotel and Casino network
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eermont Hotels, Casinos and Resorts is South Africa’s most empowered hospitality and gaming company. Boasting an excellent track record in the design, development, management, ownership and operation of multi-faceted integrated resorts; this includes hotels, casinos, convention centres, retail outlets, restaurants, bars and other sport and entertainment facilities. What’s more, with 14 properties throughout southern Africa we’re confident that there is a choice destination for every taste and style. Peermont believes that the purpose of a business is not only to produce wealth, but to do so as a social organisation with an obligation to meet and respond to the needs of the community. The company believes that it is inextricably linked to the economic and
Peermont FEATURE
Peermont Legacy: Peermont was established in November 1993 by its then Chief Executive Officer, Ernie Joubert, with the financial backing of RMB Holdings, the parent company of Rand Merchant Bank. The Company is led by a dynamic management team with extensive experience in the development and management of hotel casino resorts, who have bred the following philosophy into the company: MISSION: To deliver sustainable wealth for their shareholders, their people and their communities. VISION: To develop, own, manage and operate an enviable portfolio of leading, world class gaming, lodging, convention and leisure businesses offering their guests a range of vibrant, exciting, convenient and entertaining product offerings. VALUES: They believe in success through integrity, innovation, commitment, customer focus, ambition and a positive outlook. By listening to the views of others, embracing cultural diversity, and respecting the need for empowerment in all facets of the business. CUSTOMER PROMISE: Is that Peermont will excite you!
social fabric of society and that its health as an organisation affects the wellbeing of individuals in surrounding communities. In response to this philosophy, The Group makes a point of using local contractors wherever possible which has created permanent employment opportunities as well as contract work during construction phases of new properties. They currently employ a compliment of around 3000 staff full time. As Peermont as a group grows so too do employment opportunities. Peermont continually invest in the development of existing staff that ultimately creates new positions. If you want to know more about what to expect from a visit to Peermont Hotels Casinos Resorts, then there are opportunities to see them showcased at a range of travel shows including Indaba, and World Travel Mart around the globe. Peermont aim to offer a one-stop destination that includes accommodation and entertainment all under one roof in a safe and secure environment. To find out more about how you can enjoy ‘relaxing stays and exciting times’ let’s take a closer look at their flagship property, Emperors Palace: Let’s face it; most of us have had to ‘fritter away’ far too many hours waiting in airports. Unless you’re lucky enough to snag a nonstop flight in first-class, you’re probably going to have a layover or two in your air-travel itinerary. While some layovers leave you just enough time to scramble to your next departure gate, others fill you with dread wishing for an escape. Yet if you plan ahead of time, you can make the most of the travel time you spend at airports before, after and in-between flights... Emperors Palace is the perfect example of how Peermont properties can fulfil this for you. If you are travelling to or from O.R. Tambo International airport, Africa’s gateway, I would recommend that you add some time www.southafricamag.com 91
Peermont FEATURE
to your trip to enjoy Emperors Palace Hotel Casino Convention and Entertainment Resort. Conveniently located next to the airport, this glamorous neighbour offers more than just a city hotel experience, guests from around the globe can enjoy the splendour of 3, 4 and 5-star accommodation options, vibrant casino action, dining to suit every palate, exhilarating entertainment and excellent business and meeting facilities. Its cornucopia of restaurants, theatres, sporting events, entertainment, leisure, gaming and business venues will satisfy every travel personality from the corporate high-flyer
Let me tempt you with a few options that you have if you venture over to Emperors Palace: Refuel your tank while your plane does... Maybe you’re only on a short stop? Well it’s easy to pop over to Emperors Palace for a more civilised bite to eat. There are a variety of new restaurants with a world of new taste sensations, such as: Platia (Greek), Braza (Portuguese), Taste of Mumbai (Indian), Col’cacchio (Gourmet Italian) as well as Tribes, Ocean Basket, Gold Rush Spur and a host of fast-food outlets. Watch a movie…the spectacular Nu Metro digital cinema complex has 6 theatres, including 2 ultra-modern digital screens and 2 3D cinemas. The family
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to those on a wanderlust trail. Just minutes away from the airport, hop onto the hassle-free complimentary shuttle service and kill some time at a place that facilitates both pleasure and productivity. Emperors Palace is the perfect destination offering a host of facilities, all under one roof, if you have friends, family or colleagues meeting you from your flight then rest assured there is the added benefit of safe and secure under cover parking. Peermont are highly committed to their customers comfort –this can be seen in services such as a soon to be launched free shuttle service to and from the Gautrain Rhodesfield station also.
movie theatre offers various combinations of comfortable seating while others have plush seating and private bar facilities. Fly high with a spa treatment…Octavia’s Sensorium Day Spa offers an array of professional and specialised treatments that promises to revitalise, rejuvenate and renew your energy, beauty and health. Place your bets…the opulent glass domed casino offers tables and slots games as well as the exclusive Fortuna Poker room. Emperors Palace deals a winning combination of service, game types and facilities. Book a room…just for the day or spend the night. At Emperors Palace guests have a choice of 3, 4 and 5-star accommodation ranging from the elegant
5-star Peermont D’oreale Grande to the chic and affordable 3-star Peermont Metcourt hotel. Take in a show…Emperors Palace hosts local and international comedians, singers and dance acts as well a range of sporting events from boxing to tennis or darts. Close that deal… get real value out of those urgent last minute meetings with a myriad of business facilities and venues offering everything a business executive needs to close a deal. Fun for all the family... Emperors Palace is the ultimate family destination. You will find fantastic, specially dedicated kiddies’ areas with professional minders at the Family Fun Park where children can have as much fun as they want in complete safety.
Alternately, of course, if you prefer to stay within the confines of the airport, you could always grab a newspaper at the airport cafÊ and people watch until you nod off.... hmm, choices, choices. All this... AND with absolute ease of access; Emperors Palace offers a complimentary shuttle service to and from O.R. Tambo International airport to its resort every 20 minutes departing from the hotel bus shuttle terminal. I, for one, will be taking advantage of one of the shuttles next time I’m travelling through! To find out more please visit: www.peermontgroup.co.za or directly to the following destinations: www.peermont.com www.emperorspalace.com www.frontierinn.co.za www.graceland.co.za www.khoroni.co.za www.mondazur.com www.riocasino.co.za www.grandpalm.co.za www.mmabathopalms.co.za www.southafricamag.com 93
Upping t h e i r g am e
Erica Wark speaks with Peermont Group PR Manager, Julie Van Wyk, to find out about the re-development of the luxurious Umfolozi resort
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make-over to the tune of R115million is currently taking place for the former ‘Tusk Umfolozi’ Hotel Resort in the uMhlathuze Region in Empangeni, KwaZulu-Natal. The expansive resort has been rebranded and renamed Umfolozi Hotel Casino Convention Resort. With the redevelopment progressing exceptionally well, the resort has seriously upped its game and are proud to announce that a soft launch has been scheduled for the end of summer, with completion by December 2010. 94
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What can guests and visitors expect from this incredible investment in the make-over? The new Umfolozi Resort is a modern celebration of Zulu culture and offers the residents and visitors to the uMhlathuze Region a new and unique variety of entertainment, hospitality and conferencing facilities. “The resort retains its African identity and culture with a new, contemporary design theme incorporated into all aspects of the resort from logo to room design.” says Van Wyk. The redevelopment of the resort includes a great deal of exciting new venues and facilities – including a hotel, convention centre, restaurants and an outdoor domed events venue and corporate or family action park for teambuilding and parties . Recently opened are the newly refurbished Salon Privé with 30 slot machines and 3 gaming tables (Roulette,
Peermont FEATURE
Texas Hold ’em Poker and Blackjack) and the Umfolozi Casino smoking section. Guests have direct access to the new Salon Privé which is adjacent to the gaming floor, with exclusive parking for Privé guests. The main casino has a total of 267 slot machines and 12 tables in play with upgraded cashier booths and casino interiors. A new Peermont Metcourt hotel with 44 rooms and suites is set to open at the end of 2010, with its own F.L.A.G. Café breakfast restaurant, a well known offering found in the popular Peermont Metcourt hotels in South Africa and Botswana. The hotel will become a convenient stopover and meetings destination for guests doing business in this region. The Umfolozi Resort is situated approximately 160 kilometers north of Durban, situated in the hilly countryside of the uMhlathuze Region. The new state-of-the-art conference centre with facilities for 200 people and a multipurpose events arena will be able to accommodate up to 600 delegates, with two breakaway rooms available. There is also the exciting new addition of an Action Park, a
unique corporate event facility which includes a climbing wall plus two air-filled corporate action features called face-off and mini-swing, perfect for corporate functions and action packed team-building sessions – a welcome alternative to KwaZulu–Natal’s existing attractions. Van Wyk added that “The addition of a new Peermont Metcourt hotel, conference centre and multipurpose entertainment and events arena to our upgraded casino complex will provide guests with progressive and inexpensive accommodation, as well as muchneeded meeting and entertainment facilities in the Richards Bay and Empangeni areas of northern KwaZulu–Natal.” So, with hotels, casinos, convention centre, restaurants, sports bars and play areas on offer, I think it’s safe to say that whether your needs are business or pleasure, family or friends, the make-over of the Umfolozi, to the new “Umfolozi Hotel Casino Convention Resort” means that you’ll be well catered for. Please visit the Umfolozi website at www.umfolozicasino.co.za END
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P repare For
R e n aul Xavier Gobille, CEO of Renault South Africa, proudly speaks about the accomplishments and vision of his team. Erica Wark reports:
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aving spoken with Xavier Gobille, if you now ask me how I’d best prepare for the future of the automotive marketplace in South Africa, I would advise consumers to embrace Renault, TODAY! Have you heard any news about Renault SA recently? With general auto sales figures being surrounded with so much negativity over the last 18months, and extensive competition in the marketplace, you could be excused for not having taken note… but wouldn’t it be refreshing to hear about a company who is really driving change in South Africa?
Renault SA FEATURE
T h e Future :
aul t Let me enlighten you as to some recent achievements at Renault SA; Successfully launched numerous new vehicles: 12 over the last 18 months! Defied negative market trends by doubling their market share: 91% Sales growth for the first half of 2010, some 72% higher than the overall market. Leapt from foreign distributor to local SA manufacturer: Requiring an investment of R1 Billion, evidence of Renault’s long term commitment to the SA marketplace. Recorded substantial growth in dealer network: With a target of 50 dealerships by the end of 2010
Renewed their commitment to service:
Such is their confidence in their products that Renault has released a 5 year 150,000 km warranty. Made their vehicles accessible to all markets: Now including vehicles for entry level AB segment. Local production of entry level Sandero hatchback is now fully operational Achieved level 4 B-BBEE: Renault SA are the first passenger vehicle manufacturer to have attainted this level, and are in leading position throughout the whole country alongside one other manufacturer. www.southafricamag.com 97
Renault SA FEATURE
July 2010 saw the best month’s figures yet again !
…..And, perhaps unsurprisingly, following this impressive list, they also achieved the following; Awarded Car Company of the Year 2010 This final accolade being an award that Renault SA’s CEO, Xavier Gobille, admitted some surprise at receiving, as it is not usually awarded to such ‘small players’ in the marketplace. However, once you’ve read this article, I’m sure you’ll agree that it seems a fitting testament to the “110%” enthusiasm at Renault SA which has produced such results. Nobody would dispute that 2009 was a challenging year for the South African automotive industry, and many vehicle brands have been lamenting the market slump of 25.9%. However, Gobille has never been more upbeat about the performance of Renault in South Africa.
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“We have shown real, tangible growth and progress during one of SA’s worst economic slumps. We became a local, South African manufacturer and renewed our entire model range.” Gobille states. Negative perceptions can only be addressed with facts, and the facts certainly show that Renault is in a prime position to make further, substantial strides in 2010.
Market conditions are not a concern to Renault SA …so what does Gobille’s perceive to be their challenge? To be seen for what Renault SA is, NOW, not a reflection from their past. Gobille is quite frank that his concern is that that SA consumers have not fully acknowledged the impressive strides the brand has made, and that consumer habits are still being coloured by past ‘bad experiences’ or negative connotations associated with
The new way to shop for cars and bikes
the brand. Within the company Gobille has worked with his team to face up to this history and learn from it; with fantastic results. “We have been brave enough to take criticism on the chin, and to address those issues where improvement was needed. There have been no attempts to duck and dive – we have accepted every challenge. But now, the results are speaking for themselves.” However, he is still challenged with transferring this awareness and willingness to re-investigate the brand, to the end consumers in South Africa. Having tracked Renault SA’s recent accolades and product releases I was keen to learn the secret to their success. Gobille, modestly tried to point out that there is no great magic to it; simply much hard work, and the traditional ‘blood sweat and tears’ that any noteworthy achievement requires in business. Of course, from my time with him I now also have an understanding of the smart working attitudes which the Renault SA team has employed in order to channel their enthusiasm into results.
Essentially, even though he is expansive in giving all credit to his staff, the company is enjoying it’s current successes because of Xavier’s thinking – his modus operandum is – “FIX THE PAST - MANAGE THE PRESENT PREPARE FOR THE FUTURE” This ethos reaches far deeper than purely a motto. It requires three different attitudes in fact: FIX THE PAST – avoid typical corporate tendency to look for the guilty, but rather to observe any problems - encouraging the team to look and learn from any mistakes, gain ground from the lessons learned and be prepared to accept and grow. Implicit in this is asking the team to be brave, strong, open minded and willing to take ownership in order to develop a more cohesive strategy and not re-visit historical pitfalls
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MANAGE THE PRESENT – the period 2008-09 saw a storm hit the market. This necessitates a high level of activity across the board and an in depth awareness www.southafricamag.com 99
of the market. Equipping the company with these hard earned talents will mean maximising the effectiveness of Renault SA. Maintaining focus on the company’s Unique Selling Points, it will be possible to navigate carefully through the changing business demands and keep ahead of the pack.
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PREPARE FOR THE FUTURE - every business needs to plan for the future and this has rarely been so vital as in today’s constantly changing market and economic conditions - both nationally and internationally. The pre-requisite to maintain a firm but flexible focus on both the immediate and longer term future goals is a business imperative at Renault SA Gobille emphasised the importance of managing these three roles simultaneously, when bearing in mind that any ‘reflex’ decision today may adversely affect tomorrow’s success, so the efficacy of his strategic management.
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Employing this modus operandi has enabled Renault to weather the tempestuous landscape of the last 18months, and what’s more, achieve notably successes en route.
What’s the next stage for Renault SA? – The importance of efficiency: Gobille emphasises that this is too often confused with ‘cost saving’, the focus at Renault SA is on achieving more value for every single rand and every single action: “Expansion must not be at the expense of quality – by remaining efficient, you preserve quality.” The vision is to set in train strong but sustainable growth, managed by the right team for the future. Growth in itself can be dangerous if not managed and Gobille is mindful that the business must never become complacent, nothing should be taken for granted, and to remain aware that Renault are still in essence a small player in the field for South Africa. For now! Such ambitions, on the back of recent achievements, tie in perfectly with Renault’s new positioning line – Drive The Change – which seems perfectly fitting for the mindset at Renault SA. As Gobille remarks; “It is what the Renault SA staff and dealers have already been doing for the past two years: not making any excuses, instead making things happen, and changing things for the better.” After introducing no less than 12 new models in the past 18 months, few would argue that Renault South Africa offers car buyers one of the most diverse and up-to-date model ranges on the local market. Gobille is confident that Renault SA has something to suit all tastes, budgets and requirements.
Renault SA FEATURE
Which Renault will suit your needs? “Renault SA’s range now extends from entry-level contenders, through subcompact and compact hatchback categories, to the mainstream hatch segment. The best-ever Scénic and Grand Scénic models take care of our presence in the MPV category, while the Koleos gives us superior representation in the all-important compact SUV segment. It is our freshest product range ever, and we pride ourselves to be extremely price competitive in all market segments.” Gobille says. That leaves Renault with a full line-up of new-generation, high-tech products across its entire model spectrum, with commensurate benefits in terms technology, fuel efficiency, and quality. Moreover, despite this comprehensive model offering, Renault SA has a few more
aces up its sleeve: six brand new models, all due for launch in the next four months. Gobille believes that Renault SA now has all the strategies in place to take full advantage of the brand’s potential. Following a 70% increase in turnover last year for the brand as a whole, Renault has invested large amounts of money in the South African business and its two year plan is to triple its business volumes in South Africa and in the words of Gobille “to create a wow effect across the market place”. Certainly, against a backdrop of such positive developments, one can’t help but share his enthusiasm, and his high hopes for Renault in SA. Fancy driving the change yourself? To take a look at the Renault range, find your local dealership, or to book your test drive please visit www.renault.co.za END www.southafricamag.com 101
Looking
after the l i t t l e
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t h i n g s
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Proctor & Gamble FEATURE
e People take the little things we base our lives upon for granted. It is thanks to companies such as Procter and Gamble, who provide the foundations for these little things, that we are able to continue with our day to day routines.
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rocter and Gamble, the company behind bringing South Africa such essential products as Head & Shoulders, Tampax, Vicks and Pampers, the company that is responsible for ensuring that every teenager can ensure their dandruff is sorted before a date and every parent can be confident that their child (and their breathable air) is protected. I spoke with Stanislav Vecera, who has the awesome task of heading operations for this globally recognized company in South Africa and it is a profound relief to know that the little things that form the very grounding for
Open communication is vital as it means we know what the market is doing and where things are going my day to day life are looked after by a leader as focused and sure as him. Having literally started on the ground and worked his way to where he is now during a www.southafricamag.com 103
Proctor & Gamble FEATURE
career spanning over 19years he has created a team-ethic in Procter and Gamble South Africa which makes it not only a fulfilling and exciting place to work, but a place where open communication is sacred. This extends beyond the office, reaching from their customers- the retailers from whom they purchase their essential productsto the suppliers who provide them with their essential services. “Open communication is vital as it means we know what the market is doing and where things are going,� says Mr. Vecera As innovators and strategizers always on the lookout for new opportunities and possibilities Mr. Vecera and Procter and Gamble align themselves with like minded
businesses, lead by people they can trust and rely on to produce results. Such a business would be Eve Graham Marketing Services. Responsible for promoting marketing services for their Pampers product. Offering essential products is a highly competitive industry, with new brands and options opening up every day, so producing marketing strategies for a brand as recognized as Pampers must be carefully constructed and action and Eve Graham has the added challenge of keeping up with the high benchmark of Procter and Gamble, something that they manage with admirable grace and ease.
By investing in our people and our business expansion during a downturn allowed us to capitalize on the hidden opportunities and to advance past the competition
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Specialising in Sampling to:
7 11 467 6311 Te l : + 2 ( o f fi ce)
Private Hospitals
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Schools
| Ev eGr aha m.E GM
Brand awareness must be carefully timed with production, and in 2009 a new manufacturing facility was opened to wholly support the Pampers brand. Indeed, while some businesses were fretting and suffering from knee-jerk reactions during the 2008 and 2009 downturn Procter and Gamble forged ahead following a very strong focus on investing. “By investing in our people and our business expansion during a downturn allowed us to capitalize on the hidden opportunities and to advance past the competition,” Mr. Vecera As a major employer Globally and in SA all decisions are made with the eye on development and expansion. There are plans to expand further into Sub Saharan Africa where they are already providing noticeable change for people living in remote areas. “The Nigerian stores are mostly outdoor, so we had to develop a new packaging for their products to maintain safety and appearance,” Mr. Vecera.
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Expansion into new territories is important and exciting, as it creates jobs and the opportunity to solve new and interesting challenges, providing the tools that can be used in the future. While we certainly would miss the products they provide, it cannot be assumed that it’s the brands that make this company so successful. One look at their operations can explain why this company is the major contender in this industry and one of the top employers worldwide. It’s because they look after their employees, offering continuous training and development to everyone. Promotion is always internal so Standa’s model of rising through the ranks is by no means a singularity and there are some employees who’ve been there longer than him. Only with every member of the team is doing their job at a 100% and by looking after the little things on their side, can this top company continue to keep our foundation of little things as solid as we need it to be. END www.southafricamag.com 105
Bay
Saldanha
– The future belongs to us!
As Colin Chinery reports, Saldanha Bay is one of South Africa’s mighthave-beens, the country’s biggest port instead of Cape Town. But a multibillion R project is gaining momentum, poised to transform the economy, prosperity and social vitality of this part of Western Cape. 106 www.southafricamag.com
Saldanha Bay FEATURE
T
he port of Saldanha in Western Province is the deepest and largest natural anchorage in the southern hemisphere. From a high point on a clear day you can see Table Mountain, and arguably only lack of fresh water prevented it becoming the major port along the south shoreline of Africa instead of Cape Town, 120km down coast. One hundred thousand people live in the Saldanha Bay area and nearly one in four is unemployed. So job creation unsurprisingly is an urgent motivator in the multi-billion Rand programme to change the Municipality into an industrial powerhouse, a strategy attracting investors from around the world.
Inter-government support Five major projects are scheduled in the Industrial Development Zone plan being worked on by the national and provincial governments in collaboration with the Municipality of Saldanha Bay. These range across expansion of the port economy and raising its bulk export capacity, renewable energy, exploiting the oil and gas potential, minerals and metals, aquaculture, and a massive housing project. Feasibility studies are on-going along with environmental impact assessments. And construction could start in the second half of 2011. “As a municipality we came to the conclusion that if you have a 23% unemployment rate then clearly people can’t afford your services. It also means you cannot upgrade your services, and this is the logic behind the development,” says Shane Cordom, Saldanha Bay Municipality’s Industrial Strategy Manager. Early last year a pre-industrial study looked at the possibility of an industrial development zone and the distinctive clusters that had been identified. “The outcome was positive and paved way for a feasibility study encompassing environmental aspects, international scoping,
technical land availability and the master planning of the entire IDZ. “The IDZ application is fully supported by councillors across four political parties, by the Provincial Cabinet, the Finance, Economic Development and Trade Minister Alan Winde, and backed by the national government through the Department of Trade and Industry.”
Tripling GDP This vast project will be driven largely by foreign investment. R83 billion has been quoted, but Cordom will not be pegged on a precise number. “We never set that figure, but over 20 years it seems very reasonable. Our target is to at least triple our GDP over five years, a rate of growth that would have a major impact on our area.” The massive implications for infrastructure, housing, and the social needs local market are now under review. “We want to develop the back of port as an industrial corridor, the port itself as a multi product port facility. And we are looking to build high profile partnerships with those who want to invest… and not come just to take, using our sun and our wind and not investing in our area. “And we can develop our tourism. In terms of our training there can be a major injection. Already the Western Cape has three of the biggest universities in the whole of Africa and we can only build on the type and range of expertise that comes from them. We want to minimise our unemployment rate, increase the pass rates in our schools.”
Clean technology Six towns make up the Saldanha Bay Municipality with a total population of around 100,000. Its dominant sector is manufacturing – Mittal Steel and Exxaro are already established here - contributing one third of R2.2billion GDP, and clean technology is firmly at the centre of its planned industrial expansion. “We are saying that any industry www.southafricamag.com 107
Saldanha Bay FEATURE
that comes into our area must have clean technology,” says Cordom. “Saldanha Bay with its natural current of 23 metres is a perfect harbour for deep oil vessels, wells and repairs. In terms of location we have the infrastructure in place, port in place, and rail link, roads in perfect condition. So the flow of materials and equipment will not be a problem.” The port’s development into a modern harbour is only recent, brought on by the need to move Northern Cape exports of iron ore. A 800km rail line was built linking the mines at Sishen, along with a new deepwater jetty in Saldanha Bay to accommodate the ore carriers. With its prime location Saldanha was then targeted as a major oil and gas hub for the servicing of oil rig vessels, specifically for the West African oil industry. Three years ago its first R200 million fabrication yard for offshore oil and gas platforms was completed, one major investment in what has become a project of massive economic and social potential. Other developers in the wings range from major oil conglomerates to solar power companies. Foreign investors include an asyet-unnamed oil consortium looking to invest about R8 billion to operate an oil and gas supply base. “We already have an agreement with an investment consortium that wants to invest 108 www.southafricamag.com
in two 360 mgw coal gasification units, ten 20 mgw solar power units, and a 100 mgw wind plant. It’s also interested in water desalination and treatment.” And all manufacturing – wind turbines, blades, and gear boxes – would be carried out in the Bay area, says Cordom. Local property investor Robert Baron owns 1 600 hectares of land here and with foreign investors plans to input R6.5bn into the green housing project, which will include 6 000 houses for lower to middle-income groups and will have its own renewable power source from solar and wind energy.
A Robin Hood “You can call me a modern Robin Hood. There is a dire need for housing for the lower and middle-income brackets. “Whoever gets the construction contract has to sign a clause saying they will use local labour and transfer vital skills to the communities,” says Baron. “The construction phase will create 7,500 jobs and 5,000 direct jobs would be created in maintenance and running of the wind generators, sewerage water purification, plumbing and power generation.”
Added value a must Another Saldanha Bay suitor is Rare Metals Industry which wants to build a titanium smelter – projected investment R10 billion.
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“It’s a major, major investment, massive. There are only three other titanium smelters in the world.” Titanium is increasingly being used in industries like aerospace and defence because it is as strong as steel and light as aluminum. And a local plant would allow South Africa to export processed metals rather than the raw metals currently shipped out. South Africa’s government is pushing companies to add value to commodities before they’re exported to boost income from the nation’s natural resources. But is smelting a ‘clean’ industry? “Yes this will be a challenge for some, especially when it comes to the titanium smelter. But what we are saying all the time is that the techniques used must be clean – this is a clear and firm commitment.” Last year in a survey of South Africa’s 283 municipalities Saldanha Bay was won second top award for the most productive. Municipal IQ measures the performance of municipalities on a range of critical socio-
2010/08/02 12:04 PM
economic and financial issues that reflect the reality of local government circumstances and risk on the ground. Saldanha Bay scored 95.9 per cent for actual service delivery and was also among the top three for water provision and in the national top five for sanitation.
A golden egg “To investors we are saying you won’t lose out if you invest in Saldanha Bay; in fact you will be sitting with a small golden egg. “Investors want a footprint in Africa. They want a stable political environment and stable services. There is a commitment from Government in regard to our stance with regard to renewable energy, and studies are conforming that the Saldanha Bay is perfectly located in terms of sun and wind - that hybrid mix of energy provision opportunities. “So I think the future for Saldanha Bay can only be positive. And the interest being shown confirms that we can expect some big things.”END www.southafricamag.com 109
deliver We
WHATEVER IT TAKES Marietjie Lancaster, Group Executive Strategy at the South African Post Office speaks with Erica Wark about how the company continues to place customer care as its No. 1 business priority.
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SA Post Office FEATURE
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roviding service where most won’t, and consistently striving to create easier systems for communication, I was keen to find out about the latest offering from the South African Post Office (SAPO) to enhance communication and lifestyle in the country. SAPO has always been innovative in its efforts to answer the needs of the South African public. Going far beyond the reach of competitors – who will only operate in areas of high profit – in the past people have questioned the cold-cut business sense of the sheer breadth of services at SAPO. However, if we take a look at the philosophy behind the company then perhaps we can better understand its consistent efforts to extend its reach of services in catering for the South African public.
Mission Statement “We will enable the nation to efficiently connect with the world by distributing information, goods, financial and government services; leveraging our broad reach and embracing change, technology and innovation”
Vision Statement “To be recognised among the leading providers of postal and related services in the world.”
Company Culture and Customer Care SAPO is a corporate company with shares, but the shares are 100% owned by government. This means that it adheres to both corporate and governmental laws and is very reliable. The issue which I’ve touched upon, of Economic sustainability (vs) Universal service obligation, is not a topic of debate when you look at the company profile in this light. As SAPO is 100% government owned, it is necessary that it renders a service in even the very remote parts of South Africa, where it is quite impossible to make a profit. www.southafricamag.com 111
SA Post Office FEATURE
SAPO is very dedicated to trying to meet the needs of the country, and gains feedback on its service from customer satisfaction surveys, after which it puts in place measures to remedy any areas in which the public perceive it to be ‘lacking’. This survey is not just a one off gesture, it is carried out every two years and is an integral part of business development and customer care. SAPO recognise that what is contained within any given letter or parcel could change an individuals life, and as such, SAPO take its 112 www.southafricamag.com
responsibility to the public very seriously. The slogan on its branding reads “We deliver, whatever it takes” – which perfectly encapsulates the dedication and commitment to the vision and mission statements. An uncommon thing, and I feel very special offering.
Far more than mail… Most of the technological advancements in South Africa are in fact pushed by the Post Office.
Discover South Africa through its stamps
© The Official Emblem and Official Mascot of the 2010 FIFA World Cup South Africa TM and the FIFA World Cup Trophy are copyrights and trademarks of FIFA. All rights reserved.
www.jhb2010stampshow.co.za
Should you wish to receive our Setempe magazine free of charge three times per year to read more about South Africa’s smallest ambassadors, its stamps, please send your name and postal address to sa.stamps@postoffice.co.za
Customer Services: Tel: (012) 845 2814/15 • www.postoffice.co.za Fax 086 687 9123 or 086 688 5368 • Address: Private Bag X505, Pretoria, 0001 • sa.stamps@postoffice.co.za
SA Post Office FEATURE
SAPO’s commitment to customer care can be seen in the breadth and reach of its services expanding into areas where the government finds it hard to put infrastructure in place for example: You can now pay your annual car licensing fee at the Post Office. “Hybrid mail”: The latest innovative service that SAPO are bringing out is Hybrid mail; this will enable even easier access to the postal service. You can simply email a message to a hub at SAPO, where it will be printed and posted for you! SAPO also provide a number of Online Tools, such as the phone directory, and even down to
114 www.southafricamag.com
catalogued detail of the history of the postal service… from as far back as the year 1500! You can literally dip into each year, as if discovering ‘time capsules’ from the past, for example: 1500- 1652 : During this period, the crew of ships travelling to or from the Orient past the South coast of Africa, placed letters under postal stones, hoping that they would be found and delivered by other ships. The necessary information such as the date, name of the ship and its captain, were carved on these stones. The letters were occasionally wrapped in waxed canvas and, apart from the address, the letters DGG were written on them – for Door God geleyd, or ‘Guided by God’.
DIMENSION DATA SUCCESS STORY
The South African Post Office
SAPO and the Cisco Takeback and Recycle programme - doing business the smart way SAPO takes the lead in the worldwide campaign to preserve the environment while conducting a competitive, sustainable business
Industry
Postal Services
Country
South Africa
Challenge
Properly dispose of surplus outdated ICT equipment in an environmentally responsible and cost-effective way; decrease the costs of tracking, storing and managing excess and obsolete assets; and conform with the organisation's key environmental values and goals
Solution
Cisco Takeback and Recycle Programme
Results Proper disposal of old equipment without leakage of hazardous substances into the environment or further waste and pollution Elimination of costs of storing excess outdated hardware and other networking equipment Compliance with all environmental legislation, including E-Waste legislation Alignment with internal values and environmental policies Complete accountability a single point of contact provided for the complete disposal process, from shipping to recycling
Executive Summary The South African Post Office (SAPO) faced a common dilemma shared by many organisations when their networking equipment becomes obsolete: How do you dispose of the outdated equipment in a safe, cost-effective way that doesn't damage the environment or your operating budget? Through Cisco's innovative Takeback and Recycle programme, SAPO and its technology integrator, Dimension Data, were able to painlessly and effectively solve its outdated equipment problem by identifying and de-installing all targeted equipment, and ship it back to the UK for Cisco to process through its world-leading recycling programme, reclaiming over 99% of the materials in the equipment for use in the manufacture of new devices. Client Overview The history of mail communications in South Africa stretches back to 1501, when seafaring Portuguese traders used the Cape as a refreshment stop for fresh water and provisions and left letters in a milkwood tree for collection by other passing vessels on the lucrative trade route to India and the Far East. Since then, the history of the South African Post Office (SAPO) has been a reflection of the way the world has changed and the increasing importance of communication in the modern collaborative age. SAPO is a massive nationwide business. It delivers to an area of more than 1.2 million square kilometres, through more than 2,000 outlets and 5,500 service points. It is the largest business undertaking in the country, with branches located in rural and urban areas, from Aberdeen to Zuurfontein and most places inbetween. SAPO has a five-tiered business that extends from its mail business, which includes both traditional mail and new e-postal products, to logistics, financial services, ICT and investment in properties. In terms of its licence, the South African Post Office has to provide a number of services at all postal outlets, including those of its agents. All facilities should be able to receive and dispatch basic letters; sell postage stamps; accept and deliver cash-ondelivery (COD) items, insured parcels, ordinary parcels, registered letters and sign-on delivery items; and issue and payment of money orders. Its business vision is to be recognised as one of the top ten providers of postal services in the world. One of its operational strategies to help it execute this vision is to use technology to better enable its business. In 2009, SAPO was recognised with the ‘Da Vinci Holdings’ award in the category "Excellent management of systems" in the Technology Top 100 awards, for successfully managing IT as a tool for diversification and management.
DIMENSION DATA SUCCESS STORY
The South African Post Office
Business Challenge SAPO had a large amount of hardware and other networking equipment that had reached end of life and been replaced by newer, more updated hardware with greater functionality. This equipment was temporarily held at its Pretoria Central facility. SAPO now faced the responsibility of disposing of this equipment in the best way possible. SAPO approached Dimension Data to find a way to dispose of its outdated inventory. Dimension Data teamed up with Cisco to investigate a possible solution including local disposal through a waste company. The major stumbling block was that to date, there is no recycling plant in South Africa that meets the stringent policy guidelines that Cisco has for recycling. The processes involved in recovering the batteries, heavy metals and other components can be quite hazardous and more harmful to the environment and personnel involved than shipping the consolidated collections back to the United Kingdom.
Some of the SAPO equipment on its way to being recycled
SAPO needed to dispose of its used ICT equipment and manage its operational environment in a way that supported its internal mandate, that is, to reduce its carbon footprint and resource consumption, and improve its sustainability through recycling.
Relationship History Dimension Data provides SAPO with networking equipment that enables the effective transfer of data between post office branches and the head office. Dimension Data and Cisco have a rich collaborative history that stretches back over a decade. Dimension Data is a Cisco Gold partner in every territory in which we operate, and Cisco's largest reseller worldwide.
Solution Provided Cisco and Dimension Data were able to provide a complete solution for SAPO's dilemma through Cisco's innovative Takeback and Recycle programme. This programme reduces customer costs associated with tracking, storing and managing obsolete Cisco networking and IT assets. The programme provides a
channel through which customers can contact Cisco. Cisco will then collect all Cisco-branded equipment and dispose of it in an environmentally safe manner, using high end processes that comply with all current E-Waste regulations. Cisco's guidelines for the disposal of hardware are exacting, and there is currently no waste disposal service available locally that complies with the tough standards Cisco sets. The programme allows Cisco users to focus on their core business while Cisco takes responsibility for the safe and effective disposal of their obsolete equipment. Cisco has the niche expertise of the maze of compliance and regulatory directives of the specialised and growing discipline of environmental regulation. In addition, channelling disposal through this official channel gives additional benefits such as data security and cost/value.
How We Delivered The Cisco Takeback and Recycle programme is accessible online at www.cisco-returns.com/rrp/ so that Cisco customers can request the service at their convenience. SAPO and Dimension Data followed an
DIMENSION DATA SUCCESS STORY
The South African Post Office
easy three step process to access the benefits of the programme. The first step was to identify all the equipment SAPO wanted to return to Cisco. Thereafter, the equipment that had been identified was de-installed and packed on 13 pallets. The final step was to contact Cisco to arrange for pickup.
clear and ambitious goals for conducting a sustainable Green business. The great benefit of the Takeback and Recycle programme is that it makes it so easy to do the right thing environmentally, whilst also balancing cost, risk and other operational factors.
Thereafter, the Takeback and Recycle programme machinery went into action to ship the equipment back to the UK, where it was appropriately handled. Cisco's advanced recycling process is conducted using processes that comply with all E-Waste regulations. Upon completion of recycling, Cisco provides documentation to verify the disposal of the returned product, and can also provide a Certificate of Destruction upon request, which releases the original sender from any further liability for the equipment.
Value Derived The South African Post Office has been able to tap into and use Cisco's deep expertise in the field of environmental legislation, compliance and international regulatory monitoring. Cisco's expertise has allowed it
The Cisco Takeback and Recycle programme makes it easy for organisations to do the right thing when they dispose of their equipment, perfectly balancing cost, risk, convenience and other operational factors.
to discharge its responsibilities without fear of penalties or adverse publicity, in a field that is notoriously dynamic and complex. One of the most outstanding benefits of using the programme is its cost-effectiveness and ease of use. By following the simple three step guidelines, SAPO was able to solve its space, disposal and storage cost problems with minimal effort and resources. Cisco took full responsibility for shipping and disposal. In practical operational terms, the removal of the hardware has released SAPO from the burden of allocating considerable resources for the physical storage of the obsolete equipment, freeing up substantial space and the budget consumed for storing and securing the equipment. All of SAPO's redundant equipment has been disposed of or recycled in compliance with the highest directives and standards, including Switzerland's Ordinance on the Return, Taking Back and Disposal of Electrical and Electronic Appliances and the EU Waste, Electronic and Electrical Equipment Directive. This aligns perfectly with SAPO's visionary and forward-thinking environmental initiatives, which set For more information please visit www.dimensiondata.com/solutions
SA Post Office FEATURE
Thankfully, the service has become a little more sophisticated since the stone system of the 16th-17th Century! …but it’s a fascinating read, and a testament to the dedicated culture of the company.... if they go to this effort to catalogue and track letters back to 1501 then it gives me great faith that they’ll keep a track of my parcels in 2010 and beyond!
Corporate Citizenship at SAPO In the continued sentiment of care for all of the South African public, not only do the Post Office endeavour to ensure their mail services are available to the entire country, moreover, they are also highly involved in Corporate Social Investment initiatives to reach out to disadvantaged individuals and communities. The Corporate Social Investment initiatives are aimed at benefiting economically disadvantaged people that fall within the women, youth and the disabled segments, with a bias towards rural and peri-urban areas. In ensuring that beneficiaries receive the maximum benefit from our investment, we work in partnership with communities, not for profit organisations and like- minded organisations to offer integrated sustainable solutions. The primary focus of our corporate citizenship is to empower people to ensure sustainable and lasting development. Our areas of investment include; poverty alleviation, digital inclusion, environmental sustainability and HIV and AIDS. Our employee volunteerism program serves to enhance the reach and impact of our investment. The South African Post Office seeks to make a positive contribution to the people and the environment in which it does business. The corporate value of contributing positively to communities and to the environment guides the organisation’s Corporate Social Investment strategy and our employees’ response to socioeconomic and environmental challenges faced by disadvantaged South Africans. For me, the advantages of using the South African Post Office, as opposed to any other competitors, are clear: 118 www.southafricamag.com
Ease of access to facilities Additional services all under one roof The breadth and strength of network means I can always depend upon them to deliver Longevity of service proves them to be reliable, Backing of being 100% government owned meaning security for the future Commitment to adapting their service offering to satisfy the changing needs of their customers (eg though hybrid mail.) But perhaps you’d like to see something else from the South African Post Office? Look out for the next customer review, or get in touch now with your ideas and suggestions… Answers on a postcard, people…. Oh yes, or via hybrid mail! Visit www.sapo.co.za to access a host of Online Tools and to find out more about how the South African Post Office can support you. END
Duke-IT Services is an ICT solutions company: • Sales • Installations services • Implementations • Support solutions www.dukeit.co.za DUKE-IT is an ICT player whose main focus is Storage Solutions. We are Solutions Driven and through the world leading storage products and solutions our customers and partner are the winners. We are delivering a comprehensive range of Storage Solutions from designing, implementing, supporting and more.
IF IT IS STORAGE IT IS DUKE-IT..
Take the next step at www.EMC.com/privatecloud.
EMC Southern Africa: Strategic Partner to the South African Post Office The South African Post Office (SAPO) has chosen EMC, the world leader in information infrastructure solutions, as its strategic partner - standardizing on the EMC platform for all its storage technology requirements. EMC2, EMC, and where information lives are registered trademarks or trademarks of EMC Corporation in the United States and other countries. All other trademarks used herein are the property of their respective owners. © Copyright 2010 EMC Corporation. All rights reserved. 1922
wit h out t h e air f air Col’Cacchio Pizzeria Franchise Owner Michael Terespolsky speaks about the flavours that he is bringing to the table in South Africa, and beyond. Erica Wark reports: 120 www.southafricamag.com
Col’Cacchio FEATURE
They have been serving this up to the South African market place for the last 18 years, and they are masters of what they do. Now a franchise, they are poised to expand, and I for one am very keen to see a Col’Cacchio pizzeria spring up near me! Evidence of the pizzeria’s impressive standards can be seen by the endorsement of top SA and international chefs such as Margot Janse, Mike Bassett, Chantal Dartnell,
High quality, high class food, teamed with a relaxed atmosphere
M
ichael Terespolsky says that the greatest compliment he’s ever been paid by a customer is that they said eating at his Pizzeria was like a taste of the real Italy, without the air fare! Col’Cacchio pizzeria make serious gourmet pizza, pasta and salads. They pride themselves on sourcing top quality ingredients, and offering nutritious, fresh food at reasonable prices.
Franke Dangereux and Reuben Riffel to name a few as part of their Celebrity Chef Series. Where some chefs might be wary of invites to endorse pizzas, with the reputation as ‘junk food’ the difference with this invite is that to play in the kitchen creating pizzas at Col’Cacchio pizzeria is an invite to a playground worthy of any top flight chef. With a new specially styled pizza being featured each month throughout the winter, R5 of every pizza sold goes directly to Red Cross Children’s Hospital. This year the theme was that each chef was to craft a pizza which encapsulated the culture of a country of their choice who were competing in the World Cup and at present they are featuring an Argentinian themed pizza. So, whether it is having the likes of Franke Dangereaux come to play in the Col’Cacchio pizzeria kitchen, or Terespolsky and his team going to play in the kitchen making gourmet pizzas at Nobu, they are clearly cutting a path for themselves as leaders in the market. …and did I say healthy too? Yes, something that I feel speaks volumes about Col’Cacchio pizzeria is that the Heart & Stroke Foundation of South Africa has approved them as a www.southafricamag.com 121
Col’Cacchio FEATURE
healthy eating establishment? They were the first pizzeria and in fact third of all South African restaurants to receive this acknowledgement fifteen years ago.
So, what can you expect in store? High quality, high class food, teamed with a relaxed atmosphere. You can bring your children, and, while you enjoy the top quality food, they can enjoy being part of the whole pizzeria experience too. Staff will provide them with dough to make their own pizza base, cut shapes, have it cooked for them. While they wait they can draw up more pizza designs on brown paper ‘bases’. Sounding a little different to the last time you took the kids out for pizza? Yes, it is. Finally, no need to compromise on top quality dining experience when out with the whole family!
Think that you’re not a pizza eater? Think again. Terespolsky ensures me that they have something to suit every palette and every type of eater. Now, ever the cynic, I wasn’t so sure... Being gluten intolerant I had spent the entire interview lusting over memories of eating pizza and pasta as a child, but residing myself to the fact that I now have to miss pizzerias off my dining list…. However, I can safely take my cynic hat off, and put my dining bib on! Terespolsky takes great pride in being very responsive to the market, and innovative with his menu; if you are dining at Col’Cacchio pizzeria’s you can already enjoy a number of options for anyone with food allergies or restricted diets, such as yeast free, sugar free, dairy free, wheat and gluten free pizza bases as well as wheat and gluten free pasta. There are no preservatives nor added MSG in any of their dishes, with everything being made fresh to order. With the prolific rise in the western world of allergy testing and more diners becoming selective over ingredients this is one establishment which is already up to speed. Still not sure if pizza is your thing? Then try one of 20 different 122 www.southafricamag.com
salads on their menu, or why not design your own salad from a mouth watering list of ingredients… and anyone out there who doesn’t believe a salad is a meal in itself, I challenge you to take a look at the Col’Cacchio pizzeria salads!
Keen customer focus Terespolsky keeps Col’Cacchio pizzeria ahead of the game by carefully listening and responding to the marketplace. A perfect example of this is that there is due to be a new Col’Cacchio pizzeria store opening in the last quarter of 2010 which is a new direction for the brand; it will be the first Halaal pizzeria, and the menu is being deigned at present. The Halaal Col’Cacchio pizzeria store will be one of 13 new Col’Cacchio pizzerias franchises
set to open by the end of 2012 within South Africa. This will take store numbers up to 30 in total; however, personally I think this is a rather modest target for this impressive brand. With considerable interest coming in from the UK and Europe, Australia, USA, Canada and the Middle East, who knows where your nearest Col’Cacchio pizzeria could be in the near future?
Fancy a slice of their success? Expansion of the franchise is obviously a hot topic at Col’Cacchio pizzeria. On the topic Terespolsky sees the most likely emergent market as the UK: “We would like to find a great UK operator, someone in the game already, who knows the market, knows the suppliers, someone we can really join forces with to expand the Col’Cacchio pizzeria brand throughout the UK.” He welcomes interest from any such party, in any region. In order to be a Col’Cacchio pizzeria franchise owner you should possess the following: An entrepreneurial spirit and a strong desire to own your own business A fantastic work ethic, the ability to deal with pressure and run a business An ability to handle high labour numbers (ie) A staff of 30 permanent, and a further 20 casual front of house Knowledge of the industry, GPs, food costs, administration involved Be happy to sit psychometric testing to ensure that your profile is the right mix for a franchise owner ….perhaps a ticket to go to meet Terespolsky and his operations team!
Life inside the Col’Cacchio pizzeria family There is a great company culture at Col’Cacchio pizzeria, one of hard work but also good fun. They love what they do and the operations team are keen to share that feeling with you, not only as a customer; but so too if you start a franchise of Col’Cacchio pizzeria.
• Hychem was established in 1989, and offers a complete range of cleaning solutions, from the supply of chemicals, dispensing systems, accessories and training thus ensuring that customers hygiene standards in all aspects of their establishment are achieved. Contact us: • Johannesburg: (011) 466 1885 • Durban: (031) 700 1887 • Empangeni: (083) 610 1736 • Cape Town: (021) 551 6225 • George: (044) 878 1200 • Bloemfontein: (051) 447 2236 • Port Elizabeth: (041) 374 3477 • East London: (082) 784 1017 • Nelspruit: (013) 755 1766 • Polokwane: (015) 297 1637
www.hychem.co.za With only a small number of stores allocated to each operations manager you can expect extensive support to get your store up and running. The Col’Cacchio pizzeria operations team will provide you with: 2 months of training in store with your staff 1st month of operations in store with you Weekly visits thereafter Monthly store reports 3 monthly audits Terespolsky knows that quality and consistency of product and service will ensure the Col’Cacchio pizzeria brand name is held high, and so naturally the operations team will be your close allies throughout the set up process, and indeed throughout your contract. Like it says on the Col’Cacchio pizzeria logo, their method is “Proven & Tested” so, if you have these ingredients above then I would certainly advise you get in touch with this exciting franchise. To get a taste for Col’Cacchio pizzeria’s please visit www.colcacchio.co.za END www.southafricamag.com 123
Beauty Parlour The
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Auto Magic specialise in non-structural auto paint and repairs. CEO Hein Scheffer speaks with Erica Wark about the future of the franchise
124 www.southafricamag.com
Auto Magic FEATURE
A
uto Magic was founded in 1990 when Hein Scheffer found a niche opportunity in the motor restoration and repair industry. This niche was the gap between the chip repairs and the full blown auto body panel beaters/repair shops. Scheffer started a small company to test the waters and it has turned into one of the quickest growing companies in South Africa. The company is still experiencing exponential growth; with its customer base expanding geographically, it is of course making plans to expand the Auto Magic network in order to meet them. Customer convenience and ease of access to stores is key to Scheffer’s vision for Auto Magic; a concept which can clearly be seen in advertising campaigns, such as “Fortunately there’s an Auto Magic branch wherever your clients are.” As such he has in mind a rather aggressive expansion plan for the next 2 ½ years, and would encourage anyone interested in owning and operating a new franchise to get in touch!
Let’s take a brief look at the development of Auto Magic so far:
1990 1997 2002 2005
Scheffer opened the first Auto Magic to serve this niche area in the auto body repair market A pilot operation was set up to test this theory and to develop basic operating systems 3 franchised outlets were opened in Gauteng region, to further test the viability of this market
8 additional Franchised outlets were opened in South Africa, having received great results from the 3 franchised stores
2006
Plans were laid down to double the number of outlets after thorough testing of the existing network
2007 2009 2010
By the end of this year Auto Magic had 24 outlets operational
2012
Auto Magic plan to have 100 outlets operational by the end of 2012!
Saw an additional 20 outlets opened in South Africa
5 stores currently under construction. “We are currently expanding in Kwazulu Natal.” (Richards Bay, Umgeni, Durban CBD, Montclair.)
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Auto Magic FEATURE
Some might say this is a rather ambitious expansion plan to take place in the short period of 2 ½ years, however, the rate of expansion historically would denote that, while aggressive, it is entirely realistic for this fast moving company. Moreover, it would seem that Scheffer has cornered the market… and with such a comprehensive service offered that they still face no competition! However, this doesn’t mean that Auto Magic rest on their laurels; as a company it is extremely dynamic with its offering to the marketplace, and company standards. Auto Magic use the most technologically advanced auto repair systems available in the world, their offering is unique and of the highest standard. It is involved in ongoing investment into shops throughout South Africa. In store, Auto Magic pride themselves on having the most up to date and leading technology in the world, so you can always expect to see upgrading of existing products and fresh product offerings. In order to keep up high standards across the franchise stores all members of the Auto Magic teams train on site with a designated training manager. In addition to quality checks with staff, the staff, in turn, are obviously involved in ongoing quality checks of products, machinery and finish. Franchises experience traffic of between 3000-4000 cars a month, and, with a speedy 3 day turn around guaranteed, Auto Magic staff and operations team are always evaluating the most efficient in store practices also. Perhaps you’d be interested to know a little more about the advanced technology which Auto Magic use this advanced technology to magic away body work imperfections? The Paintless Dent Repair technique was developed in Europe about 40 years ago. South Africa has introduced this skill slowly, but it has now taken the industry by storm. The process is highly technical and involves much practice and patience. While it cannot repair all dents, size dependent, it is the best form of repair for dents caused by hail, minor body creases and smaller bumper indentations 126 www.southafricamag.com
How it works: Because car metal is soft, Paintless Dent Repair allows panel beaters to massage the metal from the inside out, returning it back to its original shape. With the help of specialized, fabricated tools that are purpose designed in high strength steel, the car’s metal is pushed back into shape from beneath the dent. Once the process is complete, the dent is no longer visible. The advantages of Paintless Dent Repair: It means there will be no trouble trying to colour match the damaged section There is also no risk of paint overspray on other areas of the vehicle As you retain the original paint on your vehicle the resale value is higher than it would be if the car was repainted It is cheaper than the more traditional methods of auto body repair! So, with this brilliant technology as part of their repertoire, here is a full list of services which Auto Magic specialise in: Scratches Rust spots Scuffs Hail damage Bumper repair Dent removal Colour coding Panel replacement Windscreen replacement What’s more, all services at Auto Magic provide clients with a professional finish and a quick turnaround time, guaranteed. Do you have a stubborn scuff or dent you’d like take care of? Or perhaps you like the idea of owning and operating your own Auto Magic Franchise! To locate your nearest store, or for more information, please visit: www.automagic.co.za or sharecall 0860 118 800 END
Claudia 083 251 9442 072 380 3020 Office: 011 616 2870 Fax: 0866 89 6912 virgin@mweb.co.za
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in S di ter eek St nA in Ag rib tio g en uti nA tS on l
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design T aste f ul
Jane Bordenave finds out how Easylife Kitchens has positioned itself as one of the leading kitchen designers in South Africa
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Easylife Kitchens FEATURE
E
stablished in 1992, Easylife Kitchens manufactures, designs and installs ready to assemble kitchens and built-in cupboards. The company employs 250 people across 26 stores around the country, as well as two factories located in Johannesburg and Cape Town. It works as a franchise and is the largest kitchen retail group in South Africa. The organisation prides itself on being consumer focussed, involving them at every stage of the development of their new kitchen. Of key importance are informing the client of their choices and ensuring their satisfaction: If a suggestion is not to their taste, is too expensive or they are unsure of their options at any stage, Easylife Kitchens wants to know. Each project has a dedicated design consultant, with whom the customer can talk through what they want from their kitchen and discuss any concerns or alterations before the installers move in. If, however, the client feels that the service they received did not live up to her or her expectations, they are guaranteed to be able to talk to the owner of the business at any time. This commitment to client wellbeing and satisfaction is one of the things that have enabled the company to stay in the games so long and remain top of the pile. However, being established and reputable alone isn’t enough to keep you ahead of the game. In late 2008 and early 2009, Easylife Kitchens underwent their own makeover, with Easylife, Reloaded, designed to reposition the brand as clean, modern and professionallooking. The company took on a new logo and embarked on a marketing campaign that combined fashion and function – magazine adverts showcased various kitchen styles with fashion models in a construction theme, under the slogan ‘Do what you need to do’.
In a speech to shareholders, employees and guests at the launch party, Managing Director, Philip Kirby explained the rationale behind the rebranding, “We have taken the bold step of totally revamping the Easylife Kitchens brand. One of the main reasons behind this is the fact that Easylife Kitchens’ existing look is no longer reflecting our current market position. Research among clients and other stakeholders has shown us that, judged on our corporate identity, we are not seen as a market leader in the kitchen industry. On the other hand, as with any company that is serious about quality, our prices are not the lowest in the marketplace. This has created the perception that we are unjustifiably expensive. To combat this perception, we realised that we needed to reposition Easylife Kitchens in the marketplace, and the most visible way of doing that was to create a corporate identity that would be in keeping with our market position.” He went on to say that the move was about more than just giving the brand a new face. Easylife Kitchens had experienced explosive growth in the few preceding years, which had been fuelled by a growing reputation for quality. This growth in demand had outstripped the capacity of its existing internal systems. A major part of the repositioning project was redesigning the firm’s systems to ensure that it was capable of consistently delivering the level of service that its Clients had come to expect. Another way in which the company is driving business is through diversification outside of the confines of kitchen design. Taking its expertise in cabinetry, and ability to effortlessly combine form and function, customers can now approach Easylife Kitchens for design ideas in their study, bar or bathroom. The same attention to detail and commitment to quality that is applied to its
During the design process, cutting edge software is used to ensure customer satisfaction aesthetically, functionally and spatially
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Easylife Kitchens FEATURE
kitchen ranges are applied here, allowing those who with to remodel their kitchens to make over other rooms at the same time. One of the challenges facing the company is a lack of skilled labour, such as carpenters and joiners. Mr Kirby feels, however, that this is not just a problem facing his company, or even something that is isolated to South Africa, but is a problem that is facing the world. It is not possible or practical for companies such as his to train people up from no-skills to a fully competent craftsman and it is an area in which businesses and governments need to work together to find a solution. However, the organisation does have a full time training team in its head office in Johannesburg, which trains up all new employees, enabling them to become an effective member of the team as quickly as possible. Investment in new technology and the latest equipment are areas that the business takes very seriously. During the design process, cutting edge software is used to ensure customer satisfaction aesthetically, functionally and spatially. New equipment has also been installed in both manufacturing plants, which has increased their efficiency and levels of productivity. The fabrication teams are now able to be more responsive without sacrificing he high levels of quality customers expect from the company. The firm is also preparing to establish its own research and development department, which will represent a huge capital and resource investment. Looking forward, within the next 12 – 18 months Easylife Kitchens will be producing exciting new ranges for its clients, which supplement its existing kitchen, study, bar and bathroom ranges. The company has successfully ridden out the recession by reinventing itself and, as the economy starts to pick up, is securing its future through diversification and imagination. Every person is unique and by working with this philosophy the firm is set to remain the number one choice for quality kitchen design for a long time to come. END 130 www.southafricamag.com
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Austro A5 Ad P3.indd 1
8/23/10 9:33:49 AM
up
Moving on
VDL Bus & Coach is one of South Africa’s premier chassis production companies. Jane Bordenave talks to Managing Director Sam Mansingh about the importance of customer and supplier relationships for the firm. 132 www.southafricamag.com
VDL Bus & Coach FEATURE
V
DL Bus and Coach was founded in February 2008 and began producing bus and coach chassis in August the same year. It supplies vehicle bodies to the commuter and intercity travel industries. The organisation is part of the VDL Groep, an Eindhoven based international industrial company, and came into being due to a sudden gap in the South African market, as MD Sam Mansingh explains, “Prior to our creation, VDL in the Netherlands used international importer Tyco Trucks to bring its products to the South African market. When they decided to leave the country, the Dutch office had to think about how to proceed. In the end, the choice was made to establish our own office in Meyersdal and continue operations ourselves.�
We consider our customers to be our friends, as well as business partners, and keep a tight bond with them The company makes two types of vehicle chassis, commuter and semi-lux. Around 85% of its output is commuter busses – these carry between 60 and 70 passengers and are used on municipal bus routes. The remaining 15% are semi-lux coaches, which seat up to 75 people at a time and are supplied in the most part to the intercity travel industry with a smaller number going to tour operators. While all the chassis components are delivered by VDL Groep in the Netherlands, the company has a strong local supply chain, which provides batteries, tyres and oils. One of the most important requirements the organisation places on its suppliers is that they are registered Black Economic www.southafricamag.com 133
VDL Bus & Coach FEATURE
Empowerment (BEE) enterprises, “we are committed to using local suppliers, but a BEE certification is a must,” says Mr Mansingh, “in addition to that we also look for manufacturers that have experience supplying to the bus and coach industry. At the end of the day, you don’t want to start a relationship with someone who ticks the local and BEE boxes, but leaves you high and dry when you need the parts. So the ability to deliver is, of course, a top priority.” All of the VDL Bus & Coach’s clients are private businesses, although the two divisions operate in different ways. Organisations that buy the semi-lux chassis operate their own routes or tours on what could be considered a traditional private basis, deciding their own routes, prices and schedules. On the other hand, those who buy the commuter bus chassis, which make up the bulk of the
company’s clients. These customers operate municipal bus routes that are determined and subsidised by the local government. Regardless of which category the client falls into, the importance of building relationships is difficult to overestimate, explains Mr Mansingh, “in South Africa, we have a small market and we all know each other, so a lot of business is done on the basis of the kind of relationship you have with your customers. We consider our customers to be our friends, as well as business partners, and keep a tight bond with them.” One of the ways the firm maintains this relationship is through its after sales department, “we have a dedicated after sales department that looks after the client once we have delivered the product to them,” he says, “they look after anything regarding the aftermarket, which can be the standard services such as queries, complaints and maintenance, but also includes driver training and technological training on and ongoing basis.” The company has recently made a major investment in its South African operations by building its own assembly plant, which was completed in Spring this year, “we identified
Teamwork is very, very important and providing training for the people who work here is an investment in this ethos
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APROXIMANDO
PESSOAS
APROXIMANDO PERSONAS
BRINGING PEOPLE TOGETHER
Marcopolo South Africa (Pty) Ltd. Nº 2 Barlow Road - Industrial West - Germiston - P. O. Box 1157 Germiston - 1400 - South Africa Tel: +27 11 418-0800 - Fax: +27 11 873-7355 www.marcopolo.com.br
a significant economic advantage that would APROXIMANDO PESSOAS BRINGINGabout PEOPLE TOGETHER - APROXIMANDOassembly PERSONAS be brought be bringing in house,” says Mr Mansingh, “Until this point we had been outsourcing this part of our operation, but it became clear that due to BRINGING PEOPLE TOGETHER - APROXIMANDO PERSONAS economies of scale it would be better to put together the chassis components ourselves.” It has also begun investment in new fuel technologies, such as compressed natural gas (CNG), biofuels and hydrogen fuel sales, “we are getting increasing requests from our clients for this kind of technology and it is something we are taking very seriously. By liaising with head office in the Netherlands, we are hoping to be able to provide these facilities to our customers in the near future.” VDL Bus & Coach also believes in using inward investment to train its employees, ensuring that they have the most comprehensive and up to date skills sets possible. At a local level, staff are sent on day or two day training courses for skills development in the areas such as computer
training and SAP software training. In addition, personnel are from time to time sent to head office in the Netherlands to receive information and training regarding new products or upgrades, “we have a very strong team and it is one of the things that sets us apart from our competitors. Teamwork is very, very important and providing training for the people who work here is an investment in this ethos.” When looking to the future, Mr Mansingh predicts a definite increase in sales figures. Additionally, there are plans on the table to move north into the rest of Africa and start trading in neighbouring countries. But what the company’s future really rests on, he says, is maintaining a good relationship with its customers, “by just being and living with our clients, we can get to where we want to be. You have to remember that your customer is king and you have to be close to them. If you do that, you will definitely succeed, and that is what we intend to do.” END
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Clearing t h e
way
Jane Bordenave speaks to Stuart Friedman, MD of Berry & Donaldson, about the state of the import/export business, and how his company can add value to its clients’ businesses
B
erry & Donaldson is the largest privately owned forwarding and clearing company in South Africa. The firm was established by Dick Berry and Ian Donaldson in Cape Town and acted primarily as a clearing service for importers in South Africa, ensuring that products passed through customs safely and promptly. Managing Director Stuart Friedman joined the company in 1986 and in that period the organisation has grown from a small family owned business into a much larger enterprise. The company now has branches in Johannesburg, Durban and Cape Town and offers forwarding as well as clearing. 136 www.southafricamag.com
Berry & Donaldson FEATURE
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Berry & Donaldson FEATURE
The organisation still works largely for South African businesses that wish to bring in goods from abroad and competes mainly with big, multi-national forwarders. However, Mr Friedman feels that their smaller size is actually advantageous, “these companies can find themselves in a situation where they have to work with a particular agent in the exporting country, regardless of whether they are good, bad or indifferent. We, on the other hand, are privileged in that we are able to go over to the respective country and meet face-to-face with various agents there. From there, we are able to pick the ones that offer the best deal and sign up with them as and when we need to.” The firm has also developed its forwarding network substantially over the past decade, enabling it to offer a fully comprehensive service to its clients. One of the most important recent changes in the industry has been the rise of information technology, “in the past few years we’ve seen an ever increasing move towards using IT – it has become the way forward in the industry,” says Mr Friedman. This has been a main area of investment for the company, which has established an online platform that allows both the importers and the exporters to access information such as the exact whereabouts of a shipment when it is in transit, “what this involves for us is inputting purchase order details directly into the computer systems, which gives clients total visibility of their order at every stage. Whereas in the past they would have had to have called us during working hours and waited while we found the relevant documents, now they can locate their shipment any time day or night via our online tracking platform.” Part of the reason why this system works so well is that, once the shipment enters the country, Berry & Donaldson has its own fleet of vehicles to carry the product to the end client, “this is something that does set 138 www.southafricamag.com
I think that we were really thrown a lifeline when we had the World Cup – it gave us a light at the end of the tunnel and was something for us all to look forward to us apart from other clearing firms, who often outsource,” explains Mr Friedman, “We have 30 trailers and eight trucks, as well as a selection of smaller, ten tonne vehicles. In addition, we have our own warehousing facility at Montague Gardens, near Cape Town, which is also where our fleet is kept.” When talking about the recession, Mr Friedman feels that the picture in South Africa is perhaps not as clear as it has been elsewhere, “I think that we were really thrown a lifeline when we had the World Cup – it gave us a light at the end of
the tunnel and was something for us all to look forward to. Now, one month on from the end of it, what remains to be seen is if the boost that the tournament gave us can be maintained, or whether we are going to face mass unemployment. At the moment, it’s just too early to say which way it will go.” For the company itself, however, the main challenge it is facing is the strong Rand, “this is a situation that does present a problem for us, because it reduces the value of the imports and consequently our revenue decreased somewhat too. Additionally, the other, smaller side of our business – exports – has decreased substantially because the goods just aren’t as competitive as they had been. So it has been a bit of a double whammy.” What has enabled the company to ride out these troubles, and those that have come before, is its ability to retain its clients over the long term, “while our main competition comes in the shape of multinational forwarders, there are some 2400 clearing agents in South Africa. This can be problematic, because some of these smaller companies will approach our existing client and undercut our rates,” says Mr Friedman, “However, we feel that there are various benefits we can offer that these smaller competitors cannot, not least of which is our commitment to building a relationship with our clients. To enable us to offer them an exceptional service we have headhunted certain customs employees, who are able to negotiate some of the more complex aspects of importing; for example, the tariff classification system is potentially full of pitfalls and some items could be classified under two or three different headings. These headings attract different rates of duty and so by employing these former customs staff, we are able to help an importer decide what category best suits their incoming goods.” Additionally, the firm will introduce clients to any schemes
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PROUD TO BE ASSOCIATED WITH BERRY & DONALDSON and incentives that are available from the department of trade and industry, “it’s about adding value. By adding value to clients’ business at a sustainable price, we add value to our own business too.” So what is Berry & Donaldson doing to ensure that it will be offering these value-adding serviced to its clients into the future? “A new initiative that we have is putting marketing reps on the road, who travel around to solicit business. This isn’t something we used to do, as word-of-mouth was enough, but the world is changing and we are adapting to that. We are also looking into opening an office in the Far East, where the majority of goods we clear and forward are coming from. Over the longer term, we hope to recruit another 50-60 staff in the next five years and to double our turnover in the same period. We have been in business for 50 years and through these strategies and maintaining our close relationships with our clients we hope to be around for another 50!” END www.southafricamag.com 139
M arket Leader
Van Ryn poised for further african expansion
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With three decades of experience in the rubber industry, Van Ryn Rubber Holdings is well established to understand and react to current and future customer needs. And major capital investment and a strategy of innovation are calculated to continue its three year growth record.
Van Ryn Rubber FEATURE
D
urbanbased Van Ryn Rubber Holdings is South Africa’s leading supplier of high volume components to the pipe sealing, automotive, plumbing and general industries. And newly-expanded production facilities along with large capital investment in machines and tools are set to continue the 25% growth posted over the past three years. Innovation is a core component of VRR’s success and position as national leader in its fields. “Innovation and progress allows us to stay ahead of our competitors and facilitates the ability to participate in certain niche markets,” says Sales and Marketing Manager Joe Mouton. www.southafricamag.com 141
Van Ryn Rubber FEATURE
Wide customer base VRR was started by Allan van Ryn in 1979 trading under the name Diaphragm Manufacturers and with a focus on producing diaphragms for air, hydraulic and other pumps Re-locating from Johannesburg to Durban in 1991, it began supplying seals and grommets to the automotive industry. Today its varied customer base includes the automotive, construction, mining, electronics, pipe sealing systems and plumbing industries in almost equal proportions, with an average monthly production of eight million parts.
State-of-the art processing With a young and vibrant management team and a world class manufacturing facility, VRR is providing competitively priced products made to international quality standards using
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state-of-the-art processing equipment from both Europe and the East. Van Ryn custom designs and develops both the tooling and rubber compounds within its own laboratory and in-house mixing facility. It also has the ability to mix and control high specification rubber materials to exacting standards.
Principal Market Segments Automotive: VRR supplies to both first and second tier automotive manufacturers, complying with specifications industry specifications. How did the auto sector recession impact on Van Ryn? “Although VRR was affected by the recession, the automotive industry represents around 20% of monthly turnover in value so the impact was and is fairly insignificant,� says Mouton.
Suppliers Of All Polymers And Rubber Chemicals Pipe sealing systems: VRR manufactures complete ranges of both high and low pressure seals and has its own facilities. It also carries both the SABS mark and the WRAS certification. Specialised mouldings: Rubber to metal bonding, high-tech flash free moulding for the explosives industry Fabric reinforced diaphrams and rubberplastic combinations Plumbing materials to severe specifications Automotive brake diaphrams Plumbing: Performance seals and diaphrams Rubber to metal bonding Tap washers to International Standards Fabric reinforced diaphrams
Unique process “VRR has now developed a unique production process which enables the moulding of flash-free components. This eradicates the need for trimming and thereby reduces manufacturing time and costs along with greatly improved quality,” says Joe Mouton. “We are continually exploring new and innovative technologies in the manufacture of rubber compounds and components, a strategy which gives us the edge over our competitors.” How significant are well-developed customer and supply chain relationships? “Suppliers are considered to be partners in the development and growth of VRR, and we have invested in experienced people to initiate and maintain healthy supply chain relationships. “Customer relationships are of vital importance to long lasting and profitable business relationships, and a strong sales team is required to maintain this.” Forty-one percent of South Africa’s privately held business cited the availability of a skilled workforce as the biggest constraint to business growth, according to last year’s Grant Thornton International Business Report - the third consecutive year that workforce issues have been cited
To The Rubber Industry For The Past 30 Years
FRONTIER INDUSTRIES
Phone: 031 563 7595 Fax: 031 563 5410 Email: info@forntind.co.za Cell: 083 775 7291 PO Box 35048 Northway, Durban 4065 7 Alassia, 15 Umgeni Grove, Umgeni Park, Durban North
in Grant Thornton’s survey as the greatest impediment to growth in South Africa. VRR’s response is an extensive in-house and external training programmes to keep its work force abreast of developments and innovations. “We maintain a strong core work force of highly skilled labour. “At the same time the culture of VRR is to empower all levels of the work force to make their own decisions pertaining to manufacturing processes within the parameters of the laid down procedures. Multi functional teams meet on a daily basis to address problems and developments.” While energy supply and price hikes are major challenges as for other South African businesses, VRR is pushing its global market reach. “We have ventured into Africa during the past twelve months and further growth is expected based on current negotiations with companies,” says Joe Mouton. “And further exports into European countries are in an advanced stage of negotiations.” END www.southafricamag.com 143
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