May 2012 www.endeavourmagazine.com
PP TECHNIQ: BLADE RUNNER
INNOVATION GROUP: THE VIRTUAL POWER STATION
CAPE TOWN: THE MOTHER CITY DESTINATION
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EDDIE JORDAN: HAVING FUN IS SERIOUS BUSINESS Inspired by your success
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May 2012 www.endeavourmagazine.com
PP TECHNIQ: BLADE RUNNER
INNOVATION GROUP: THE VIRTUAL POWER STATION
CAPE TOWN: THE MOTHER CITY DESTINATION
UK £4.95 CAN $14.75 USA $7.99 EUR €7.90 SA ZAR 58.00
EDDIE JORDAN: HAVING FUN IS SERIOUS BUSINESS Inspired by your success
Heads of Departments Editorial: Editor in Chief Daemon Sands daemonsands@littlegatepublishing.com Research: Director of Research Don Campbell doncampbell@littlegatepublishing.com Finance: Corporate Director Anthony Letchumaman anthonyl@littlegatepublishing.com Studio: Lead Designer Alina Sandu studio@littlegatepublishing.com Publisher: Stephen Warman stevewarman@littlegatepublishing.com Any enquiries or subscriptions can be sent to info@littlegatepublishing.com ENDEAVOUR MAGAZINE is published by Littlegate Publishing LTD which is a Registered Company in the United Kingdom. Company Registration: 07657236 Registered office: 343 City Road London EC1 V1LR VAT registration number:116 776007 Littlegate Publishing Ltd The Glasshouse, Kings Lane Norwich, NR1 3PS United Kingdom
Littlegate Publishing Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. Copyright © Littlegate Publishing Ltd 2012
Editor’s note By Daemon Sands Chief Editor of Endeavour Magazine Spring, or autumn if you are one of our more southern readers, is a time of transition often more enjoyable than the scorching summers of Africa or the frigid summers of Britain. Certainly a time of change - for example Britain has implemented a hose pipe ban at the very same time as issuing flood warnings, proving once and for all that the government are less in touch with reality than their public relations insist. As the storm clouds gathered around the waistline of the Littlegate Towers and Donnie Rust went kite flying in the car park, we all had to admit that this month has been one for opportunities. Concentrating on companies that have pushed through economic and environmental hardships and become leaders in their industries, we examined the secrets to their success and learned many important lessons this month. We caught up with the City Manager of the Cape Town Municipality in South Africa, looked in on the highly skilled, well-trained employees of the Johannesburg Water. We marvelled at companies like Banbros Bus and Coach, the Innovation Group and Glassware Mart. We tracked the tactical footsteps of Zambeef throughout Southern and Eastern Africa, paid close attention to GM Graphix and had a look around SESSA. Jim Blythe found he wasn’t the only observational cynic in the world and Rob James flexed his wordsmith muscles while Donnie Rust considered history from a futuristic point of view. So whether it be spring or autumn wherever you are, remember that if you want to know the way to go, look at people who’re doing it better than you and try to copy them. After all, imitation is the highest form of flattery. Kindest,
Endeavour Magazine • May 2012 • 3
Features Innovation Group: The Virtual Power Station The Sustainable Energy Society Of Southern Africa PP Techniq: Blade Runner Cape Town Municipality Joburg Water: Keeping Water Running And Clear
18 24 28 34 40 Banbros Ltd: All Aboard! 46 GM Graphix: Changing The World One Label At A Time 52 East Africa Glassware Mart: Touch Of Glass 58 Zambeef Products: Driving Ambition 66 Agro Chemical And Food Company: Changing With The Times 74 “I feel that luck is preparation meeting opportunity.” Oprah Winfrey
Articles Eddie Jordan: Having Fun Is Serious Business
6 Socialising 10 A New Model Why History Will Have 12 The Wrong Idea About Us 16 Whoops-A-Daisy! Biz-tainment
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Nic Stanissis: It’s All About Winning
“The absolute fundamental aim is to make money out of satisfying customers.” John Egan
www.j1-rpmc.com
HAVING FUN IS SERIOUS BUSINESS by Donnie Rust In the world of Formula 1, Eddie Jordan requires no introduction, he is one of the most recognizable figures in the racing world, a man who is famous for being himself and doing what he loves doing. He’s been given an honorary OBE for his services to motor racing and charity, is a highly sought after race day commentator and has fans in every corner of the globe. Despite this he took the time to speak with Donnie Rust regarding his newest adventure, J1 Marketing and Hospitality. Enjoying a brief stint as a race car driver himself, it was his team - Jordan Grand Prix (also known as Eddie Jordan Racing or simply Jordan GP) that competed from 1991 to 2005 - that became synonymous with the “rock and roll” attitude which added colour and character to Formula One in the 1990s and solidified Eddie’s legend in the sport well up to this day. What is the specific aim for J1 Marketing and Hospitality from your point of view? “I have a personal obligation to leave Formula 1 in the best hands and to make sure it stands the test of time. Jordan has always been a lifestyle brand, it was always racy, it always had the best girls, it was edgy and a lot of fun. We knew we had to win the crowd but we didn’t go into things wanting to leave an impression, we went in wanting to enjoy ourselves and I think that came across.”- Eddie Jordan
This approach was as much a tactical step to baffle the competition, as it was a move to create a culture that fans could love. When the Jordan team arrived, with their flashy cars and their flashy girls, with their energetic and charismatic leader Eddie Jordan, everyone turned to look their way. During the race everyone knew where their cars were and the up-shot of this was that even on the occasions that they didn’t win the race fans worldwide would be talking about the winner and the Jordan team. “I want to find a middle point, a perfect balance between the two extremes so that people can come in and have a hands-on experience that they may not have had elsewhere.”- Eddie Jordan Credited with bringing the likes of Michael Schumacher to the sport, Eddie Jordan works only with the best and it took RPCM founder Murray Schwartz to bring J1 Marketing into reality. “Eddie and I were introduced by a mutual friend and instantly clicked. Right there we realized we had to work on something together. We both had ideas that could work well together and J1 Marketing and Hospitality really started then,” - Murray Schwartz (RPMC) Murray Schwartz founder of RPMC, (www.rpmc.com) the event management company that counts clients from the top 100 worldwide businesses has over two decades worth of satisfied customers. After years of experience Murray knows the secret to ensuring a successful event: “It’s easy, we cut through the norm and the conventional, we bring people something new, something exciting, something out-of-the-ordinary and while our customers are having the best time of their lives we’re carefully planning Endeavour Magazine • May 2012 • 7
and looking after everything,” - Murray Schwartz (RPMC) Specialized, bespoke and customized were the words that were used during my conversation with both Murray Schwartz and Eddie Jordan regarding what J1 will offer to fans. Ideally, whether it’s for the fan group or a business wanting to reward employees, J1 will provide a custom designed tour, carefully tailored to include things like Happy Hour on race weekends with Eddie Jordan, a Sunday pre-race J1 Brunch with an inside scoop on practice, qualifying, race analysis and surprise guests. Behind the wheel experiences, advanced driving techniques, stories, insights and parties with F1 guests and motivational and even educational experiences where people get the chance to draw on his vast business and personal experiences. Formula 1 is a world leading industry where technical advancements that change the automotive industry are put together and tested. In a way, it is sporting applied research and development, with new ideas and inventions being thoroughly tested, used on the track in a highly competitive environment and then implemented into the automotive industry. From driver safety to car stability and fuel usage almost every innovation from the past fifty years has come from Formula 1. Murray has taken his wealth of event experience, his vast latticed-network of contacts and wrapped it around the persona of Eddie Jordan. Doing so has created something that will expand beyond the borders of F1. It’s well known that you are very into your music; do you think that J1 will move beyond F1 and into different arenas? “Of course! Music is prime. It’s important to know what people want, know what’ll get people talking and enjoying themselves and music has always been a big part of what I’ve done so it’s definitely going to happen,” - Eddie Jordan You’re famous for your energy, vitality and your love of having fun; where does all that stem from? “Maybe it’s in my genes? I feel that I’m very lucky to have reached the age I am at and to be happy, to have a wonderful family, a beautiful wife and my health. If I was going to attribute it to something other than good fortune I would say it’s down to being manic. I don’t have time for aging, I cram my life as full as I can. I have so much more that I want to do and will keep on going.” – Eddie Jordan Rare people like Eddie Jordan and Murray Schwartz are always looking for the new things that they can do and, rarer still, they do what they say they’re going to do. It’s never enough to just talk about something - they have to make things happen. It’s thanks to this sort of attitude and approach that Formula 1 has remained one of the most dynamic sports in the world for so long and will continue well into the future.
Eddie Jordan - Murray Schwartz Endeavour Magazine • May 2012 • 9
SOCIALISING A NEW MODEL Communication is, so I’m told, important. By and large, I’d agree with that; communication and thumbs have made us the dominant species on the planet. Communication allows us to share thoughts and ideas, thumbs allow us to pick things up and flick elastic bands at one another. They’re both marvellous things. From an organisational perspective it’s good to talk and to find out what’s going on, should you wish to be successful. But just talking, or sending a message, really doesn’t count as communication as far as I’m concerned. It’s got to be a twoway thing where the communicator and the communicated both go their separate ways with a clear understanding of what’s just been said. If they both end up with the same clear understanding then so much the better. What I’m trying to say is that if you’re going to “communicate” you need to try to make sure that what you’re communicating is clear and has been understood by the third party, or parties if you’re more popular than me. The reason I’m banging on about this is that I’ve been “communicated with” by Dave. And here is just one small part of the communication Dave sent: “Chris will be socialising a new model for the approval of production changes during the day to our senior stakeholders”. And well done to Chris, I wish him well with it. But what is it he’s actually doing? I haven’t got a clue! To help me to understand the message, I’ve tried breaking it down word by word. According to my dictionary ‘socialising’ means, “make fit for life in companionship with others”. OK, fine, I get that but it raises a question. You see, I thought that the “model” he referred to must be a business model, defined as “a
by Jim Blythe
standard or example for imitation or comparison”. But you can’t socialise one of those can you? It’d be impossible. So that presumably means that the model Chris will be socialising is instead “a person whose profession is posing for artists or photographers”. This is a surprising development so it was well worth Dave taking the time to communicate it to the team. Let’s press on. Our new model, not named in the communication probably in the interests of Data Protection, is being socialised for approval. Probably after that approval process, we’ll decide whether or not they’re the sort of model we’re after. Strange, I would’ve thought we’d have covered that in the selection process rather than letting it get to a socialisation scenario. Now I come to think of it, we’ve never done a socialisation session for any other new person in all the years I’ve been with the firm. Maybe this is a change to our recruitment process? Could this be the “production changes” that the communication makes reference to? It seems unlikely as these are “recruitment changes” and not “production changes”. How confusing! But hold on, we’re not approving the new model; the approval has to come from these “production changes”. Now I’m even more confused! Production changes are things aren’t they; not people? So how are we to know whether they approve of our model or not? Unless I’m reading it wrong and the model has to approve the production changes. Ah, that makes more sense! Except, wouldn’t it be better to get the production changes approved by someone who works in the
production area rather than passing it over to a person whose profession is posing for artists or photographers? Unless of course this is what our production changes will entail. But that’d be really strange. This is an insurance company! And these production changes are happening “during the day”. This is a surprisingly rapid rate of change, especially if we are going from insurance to modelling. Still, no point in dawdling I suppose if we’ve decided that this is the way we want the business to go. And actually it appears that these production changes happening during the day are only happening to our senior stakeholders. They’re an important bunch but there aren’t that many of them which is presumably why Chris feels he can make the changes so quickly. So, in summary “Chris will be taking a new person whose profession is posing for artists or photographers and making them fit for life in companionship with others to enable them to approve some production changes which are happening that day to our senior stakeholders” Now I understand the sentence but I’m still not sure that I understand what Chris is doing or even why. So I decide to send a reply to Dave asking for clarity. Strangely, he doesn’t reply. Does the man not realise how important it is to communicate?
Jim Blythe is a writer, actor, director, producer, comedian and inconsiderate lover. When he isn’t moaning about his experiences in the field of business he runs Spooky Kid Productions, a platform to help new talent get in front of an audience. See more of what he does at www.spookykid.co.uk. Endeavour Magazine • May 2012 • 11
WHY HISTORY WILL HAVE THE WRONG IDEA ABOUT US by Donnie Rust
According to the FBI, in July 9th this year 350 000 computers around the world will stop working creating a lottery where the prize is a lot of screaming and frantic key punching. Combine that with the Mayan prediction of the world coming to a dramatic end on December 21 and this year is turning out to be a defining time for our generation. But, if the world is actually going to end we probably won’t be forewarned[1]. Whether it happens or not, in 4000 years archaeologists and historians will still be arguing with each other about how people of the early 21st century lived. And they will be wrong. The Historians Historically, people who make the discoveries today are making them thanks to the information from the people who made the previous discoveries and the assumption that what was said is still correct and accurate (unlike the size of the tyrannosaurus rex[2]). All in all - history is very much a jigsaw puzzle with most pieces being custom-made by “experts” not wanting to admit that they simply don’t have a clue. See, history is written and recorded. This system has worked for every civilization - until a single fire or invading horde destroys everything and the next civilization is left to pick up the pieces, put it all back together and explain what happened. “But that’s why we have computers,” you say, “We store everything online so that we can always access it.” Then tell me - do you have the technology to read a floppy disk? An original floppy disk like the ones that were actually floppy and used in 1996… assuming you’re old enough to remember them? It’s the problem with technology: you have to update everything together, since updating is where corporations make their money. Imagine what the technology will be like in 4000 years. They’ll be looking at our most advanced nano-bio-technology the same way we look at medieval surgeons who preferred using long, slender pieces of curved
steel to remove kidney stones and occasionally had to have patients held down due to the lack of anaesthetic during the procedure. “Ah ha!” you say, crossing your legs, “Good thing that so much of our history is being kept safe and sound within books then right?” Nope. [3] To make room for computer space and social places where computers can keep their human vehicles well-nourished and caffeinated, books by the thousands are being destroyed every day because the information is being recorded online and these parchments are taking up valuable space and cataloguing them would cost too much money. So they’re just being burned instead. For you and me, that’s cool. I like using my laptop in a caffeine enriched area with music instead of the dusty smell of old pages and it will work for as long as it does until either: 1. a super computer virus manages to override everything and kill the internet (July 9th will be interesting) and 2. An EMP of sufficient size is let off and kills the internet. But… In 4000 years, historians aren’t going to have a lot to work with and when it comes to updating the history of our generation they’ll be forced to use whatever is left over, which could be anything from the comic books that are kept in vacuum packed plastic sleeves by our forward thinking geeks, the magazines with the plastic non-recyclable pages or the books kept on your shelves. These may not exactly contain the wealth of human experience from the twenty first century. (I’ve just had a look at my bookshelves - I have two by Endeavour Magazine • May 2012 • 13
Stephen King, Michael Chrichton, and regrettably and for this my shame knows no bounds - all of the Harry Potter series.) Magazines last longer than newspapers, children’s books last even longer, posters aren’t biodegradable and of the gazillions of copies of all of the above, one might manage to survive 4000 years (maybe due to the extreme pre-planning of the world’s most obsessive compulsive celephiliac). The insinuations that it could convey will be ridiculous: Russell Brand will be thought of as some messiah, Matthew McConaughey will be thought of as a short armed, unbalanced demon[4], Stephen Fry will be an all-knowing, all-seeing god, Bill Gates will be the devil, Teletubbies will be some sort of stomach disease that destroyed an entire generation, and everyone will worship some sort of unseen god known as the Internet. And that is just the problem the historians face. The Archaeologists Historians deal with information, archaeologists deal with stuff and will be looking at our bones and will come to their own conclusions. They’ll find evidence that every person spent hours every day staring at a box in the corner of a room and when we weren’t doing that we had little boxes in our pockets (and, if the Chinese have anything to say about it, in our heads). To them iPhones will be to the internet what crucifixes are to the church. Also consider how much push we have currently for biodegradable materials and how many new, biodegradable and lightweight materials are being developed. In twenty years we’ll have buildings and vehicles stronger and more durable than what we have now but able to dissolve into air given the right stimulus. In 4000 years, they’ll find only our historic buildings - if that - because those will be the only buildings strong enough to survive. High rises, sky scrapers, machinery, technology - how many state-of-the-art things do you rely on every day that are not only disposable but need to be replaced every couple of years to keep them updated? Compare their durability to something far simpler like a shovel? Because what would last for 4000 years? Plastics? Titanium? These materials do last but they don’t last well, plastic degrades, distorts, cracks and turns toxic and even titanium warps given enough time. Not to mention we like to recycle everything. You’re not particularly interested in the first cell phone ever put onto the market because now it’s just a hunk of redundant plastic. We live in a world of expendable and replaceable worth. So What Would They Find? The most rudimentary and basic tools you can think of. The question is - where? Wood, metal, plastic all degrade and rot - some slower than others, but in 4000 years that Spork you have won’t look like anything you would want to eat with. The only tools fit enough to be found and recognized would be the ones that have been fossilized. Just like dinosaur bones, dropped in the tar pits, mud pits and random cement mixers. And, what they find may not even be from our time, it could be your grandfather’s hammer they find and assume it’s yours.
Spades, shovels, picks, nails, hammers - these things don’t need to develop or advance quickly and are a fair constant in the construction industry and are very common and more likely to be found, but they only represent a small portion of what it takes to make such architectural palaces as a sky scraper, or a mansion. Even the bigger machinery used won’t be able to last four millennia: Cranes, trucks and other machinery only have a lifespan of a few centuries before they’re literally dust and the really important elements of construction like the design and planning (i.e. the parts that prove whether something was made by humans or by aliens) are now done on computers and even if they are done on paper- they’re scanned and stored on computers! In the year 6012 people will look at us and wonder how we were able to build things like sky scrapers, ships, aeroplanes, bridges, castles, the Sidney Opera House and Burj Khalifa[5] and if they’re like us they’ll compare our way of life to theirs and reach the conclusion we either used slaves to build everything, or magical-wizarding-aliens (thanks to my bookshelf). In Conclusion In the future, will their experts assume that our celebrities were our religious gods, will Megan Fox be the goddess of brief-movie careers and Keira Knightly the embodiment of famine? Will they think that Hugh Jackman was not only a man with a metal skeleton and claws, but also an Australia sheepherder who occasionally boxed with robots? Was Christian Bale actually a psychotic murderer and a masked, caped vigilante? Did we actually breathe in smoke and pump all of our sewerage into the ocean before sending our children to go swimming in it? Will they look back on us the same way we look back on the Egyptians and ancient Greeks with a lot of guesswork based-on assumptions of their intelligence? Marvelling that despite their simplicity and naivety they were able to create such marvels because we’re unable to fathom not being intellectually and technologically superior to anything civilization that’s existed before us? And here is the crux, despite all the latest technologies we have right now and all the brilliant advancements we’re making and all the new discoveries and for all the good we’ve done and will ever do, we are still the cavemen for future generations. [1] http://bit.ly/InTPAj [2] http://bit.ly/p6svvD [3] http://bit.ly/pptGyk [4] http://bit.ly/tuw9Ox [5] http://bit.ly/8C2hpK
Donnie Rust, (AKA The Naked Busker) is one of Britain’s foremost comedy writers in the field of business, travel and adventure with over 1 million readers worldwide. His stand-up comedy is apparently hilarious too. He can be found at: www.facebook.com/donnierust.
Endeavour Magazine • May 2012 • 15
WHOOPS-A-DAISY! by Rob James
So Aviva, the global insurance giants, managed to send an email sacking 1,300 staff in error (1). Not a clever thing to do and it certainly got a lot of publicity but, at the end of the day, it was just human error on the part of one person for which the corporation as a whole couldn’t really be blamed.
It was pretty funny provided you weren’t one of the people who got the email, and it got me thinking about some of the best corporate blunders over the years. There have been many. Back in the 1990s Quaker Oats Company was proving pretty successful in their chosen market of dry foodstuffs. This led to them deciding to branch out and buy the Gatorade sports drink franchise. When this went well for them they got confident and bought the trendy bottled tea maker Snapple for $1.7 billion. And it was at that point that Quaker discovered to their horror that unlike all their other products Snapple beverages required refrigeration. And Quaker had a massive fleet of exactly zero refrigerated vehicles with which to distribute Snapple. Distribution companies, being no fools, learned this and priced accordingly meaning that the marketing and R&D budgets were exhausted in the wrong place. Quaker eventually sold Snapple for $300 million. (2) For their 2002 Martin Luther King Day celebration, the Lauderville, FL Chamber of Commerce invited actor James Earl Jones to appear as a featured speaker. As thanks, they commissioned a plaque featuring African Americans from the US Black Heritage postage stamp series. They went to local promotions company AdPro Specialties, who subcontracted the job to Texas-based Merit Industries. Merit faxed AdPro a list of 15 African American stamps to choose from, and promised to handle all the details. Four days before the celebration, AdPro received the Black Heritage plaque, and were stunned to see that the plaque thanked not James Earl Jones, but James Earl Ray, Martin Luther King’s assassin. Merit blamed its near-illiterate employees for bungling a rush job, while AdPro repaired the plaque locally. (3) When faced with striking workers at their Chicago factory, the brains behind Schwinn Bicycle decided to outsource their manufacturing to Taiwan, choosing the Giant Bicycle Company as the ideal suppliers. And why not? Since bicycles are technologically very simple, labour is the highest cost, and Giant’s workers were the cheapest anywhere. For Schwinn, the Giant deal worked so well that when the strike ended, they continued outsourcing to them. What a shame that no one at Schwinn thought about getting any sort of “non-compete” clause into the contract. Because Giant learned everything about Schwinn bikes and then sent sales reps to every Schwinn dealer in the US telling them that they made Schwinn bikes and could provide them for 30% less. Unsurprisingly, the dealers went to Giant. Schwinn tried to rescue something from the wreckage proposing a joint Schwinn-Giant brand but they had nothing to offer Giant who were already selling 300,000 bikes a year under its own name. Schwinn declared bankruptcy in 1991 and today
the brand is a shell of what it once was. Giant continues its uncontested reign as the largest bicycle manufacturer in the world. (4) At a National Amusements cinema in Holtsville, N.Y., an audience settled in to watch the family film “The Last Mimzy”. What they got instead was the opening scene from “The Hills Have Eyes 2,” in which a chained woman gives birth to a cannibalistic mutant. Having seen “The Last Mimzy” I would’ve considered this an improvement but the watching parents didn’t. (5) The oldest tale, though I can’t quote any reliable source on this one, is that in 1876, Western Union had a monopoly on the telegraph; at the time the world’s most advanced communications technology. This made it one of America’s richest and most powerful companies. So when Gardiner Greene Hubbard, a wealthy Bostonian, approached them with an offer to sell the patent for a new invention he had helped to fund, this was treated as a joke. Hubbard was asking for $100,000! Hubbard was bypassed and a response was sent directly to the inventor; Alexander Graham Bell. “Mr. Bell,” they wrote, “after careful consideration of your invention, while it is a very interesting novelty, we have come to the conclusion that it has no commercial possibilities… What use could this company make of an electrical toy?” This was, of course, the telephone. Corporate mistakes are nothing new but in these days of fast, global communication you really can’t afford to make many of them. (1) http://bit.ly/JraxPm (amongst many others) (2) “Triarc to buy Failing Snapple Business from Quaker Oats for $300M”, Oklahoma Journal Record, April 3, 1997 AND “The Dumbest Moments in Business History: Useless Products, Ruinous Deals, Clueless Bosses, and Other Signs of Unintelligent Life in the Workplace” by Adam Horowitz (3) “James Earl Gaffe has a plaque maker for Lauderville in Retreat”, The Miami Herald, Jan 17 2002 AND “Mix-up has plaque honouring accused MLK killer instead of black actor”, South Florida Sun-Sentinel, Jan 15 2002 (4) “No Hands, The Rise and Fall of the Schwinn Bicycle Company, An American Institution”, by Judith Crown and Glenn Coleman, 1996 (5) http://cnnmon.ie/IaZKs9
Rob James is a guerilla comedian prefering never to announce a gig in advance and to just turn up. He dislikes organised events, organised political parties, organised religion and organised socks. Endeavour Magazine • May 2012 • 17
Innovation Group www.za.innovation-group.com + 27 11 790 5200 Written by Martin White
THE VIRTUAL POWER STATION
Endeavour Magazine • May 2012 • 19
Innovation Group
South Africa, with its abundance of natural resources, still faces a serious energy crisis that threatens economic growth for the entire nation. Demand for energy is stretching supply to the point where load shedding and rapidly increasing energy prices are a serious concern for businesses and consumers alike across the country. Endeavour Magazine looks at how experience gained in claims management and business process outsourcing for the insurance sector can provide an answer for long term energy security in the country. London Stock Exchange listed Innovation Group is a leading international outsourcing and software provider for the insurance, automotive and property sectors, employing over 2000 staff in 13 countries covering the largest insurance markets across the world. Originally established in the UK in 1996 and developing its first claims solutions for the insurance sector in 1999, the company has grown to represent more than 800 clients including many of the leading insurers, fleet management companies and financial service providers worldwide. A great deal of this growth can be attributed to the company’s approach of developing tailored solutions to individual client needs according to the markets in which they operate. This is why their South African operation has embarked on a major alternative energy solutions programme as explained by Llewellan Vance, Business Development Manager for Innovation Group South Africa: “A national power emergency was declared in 2008 and since then South Africa has been subject to rolling blackouts and vast increases in energy prices mainly due to the demand for energy beginning to completely outstrip supply but also to cover the cost of power plant refurbishment and building new generating capacity. “Climate change is a local and global problem and South Africa’s state utility Eskom has had to address the critical issues of how energy can be supplied sustainably whilst also looking at how to reduce consumption.”
These challenges helped to force a renewed government focus on the development of sustainable energy policies and provided an ideal opportunity for Innovation Group to carry over its extensive experience in the insurance sector as Llewellan explains: “As a group we specialise in claims administration and providing solutions to encompass the full claims cycle. In addition we provide incident management processes and solutions which enable us to effectively service our clients through our panel of accredited service providers. Globally the group processes in excess of 1.2 million claims annually and pays out over ZAR 1 billion in claims each month, whereas in South Africa we handle over 160,000 incidents per month paying out over ZAR 400 million to service providers on behalf of our clients. “As part of our incident management processes we have traditionally been involved with the replacement of electric geysers (boilers) in the event of breakdown or failure; with increasing focus being placed on sustainability, we decided we could shift our outsourcing model towards the use of solar water heating through reactive insurance related boiler replacements.” Electric water heating is highly energy intensive and is a factor that has further added to the problems affecting the South African energy sector. Solar water heating eliminates the demand of conventional electric systems by using natural solar thermal energy for water heating. South Africa is considered to be an ideal market for use of solar thermal energy due to the high rate of annual sunshine and solar radiation levels ranking among the highest in the world. Innovation Group embarked on a rigorous process for the selection of solar water heating system suppliers to be used as part of a major rollout programme. Each supplier was required to be accredited by the South African Bureau of Standards (SABS) to be recognised an Eskom solar water heating provider. The Eskom objective was to stimulate the uptake of solar water heating systems by offering a rebate which is paid to offset the cost of converting against long term energy saving. The issue of supplier selection remains an important factor as Llewellan explains: “We ensure that an extensive due diligence process is followed to assess the quality of local and imported system manufacturers and extend this approach to also cover the capabilities of approved solar water heating installers on a national basis. The government, through Eskom, has focussed on supporting local content and this is enforced through the rebate programme, we support this alongside our insurance partners through investment in local suppliers and installers as a means of skills development and job creation. “We have developed very strong relationships with our suppliers and service providers meaning we can centrally manage each and every installation on behalf of our insurance clients to offer a bespoke system for each end user. Through continuous improvement we have developed a national network of suppliers and installers meaning we can offer the best possible response time and service for the end customer.” As the concept of sustainability is still a relatively new phenomenon in South Africa, the problem remains that consumers are still slow to accept the technology but continuous improvement has allowed Innovation Group to refine its processes even further to help improve conversion rates: Endeavour Magazine • May 2012 • 21
Innovation Group
“By applying continuous learning principles from each roll-out project we are able to optimise reasons for conversion and address barriers for change. We are able to offer a comprehensive cost analysis to each end-user which breaks down the cost of conversion against monthly savings to offer a strong financial incentive. We have found that one of the main call to action barriers is the up-front cost of conversion as even with the Eskom rebate customers can be put off because the lead time for settlement of the rebate can take as long as six to eight weeks.” “Through the central management of each conversion we are able to settle each rebate payment with the end user up front so they receive the benefit almost immediately where after we apply for the Eskom rebate through our service providers. This approach means we can offer an instant return when monthly savings are factored into the value proposition meaning that we can optimise conversions even when the end customer is operating a fully functioning electric system.” For the company to achieve its ambitious target of removing energy demand of up to 600 megawatts from the national power grid it becomes even more important that it is successful in converting households with functioning systems just as well as those who suffer system failures: “We approach this task by seeking to maximise both proactive and reactive conversions across the market. Proactively we approach leads from our insurance and corporate clients to offer conversions from a value and cost saving perspective. By maximising conversion of proactive business we can also secure access to our insurance client’s reactive conversions which arise in the event of system failure. By increasing volume we can achieve greater leverage with our supply chain partners by developing economies of scale which further adds to our long term value proposition.” Developing close links with the supply chain has also allowed Innovation Group to enhance value added services to enhance customer satisfaction and improve quality through after sale care: “We are the only company to develop an enhanced service and maintenance plan which includes a warranty covering each system for up to 10 years after installation. We follow up with each customer to ensure a positive experience and we are able to liaise with our suppliers to rectify any problems that are identified with either the installation or operation
of the equipment. This approach also helps our suppliers to ensure that each installation is carried out correctly first time.” The model that Innovation Group has developed is unique and the first of its kind in South Africa. The approach represents a commitment to quality and consistency which has not been seen before and also has the potential to make a significant contribution to energy saving through the implementation of mass roll out projects supported by a comprehensive and well managed supply chain. The company has a very strong ethical approach to the way it carries out its business which further attributes to its potential: “As a company we are committed to playing our part in solving the energy crisis and supporting environmental protection. We continuously strive to create a total solution for the end user which addresses all of their concerns and creates a compelling reason to buy. We aim to be a major role player in addressing the problems affecting the energy sector by promoting a more sustainable way of living.” The company has also extended its initiative to include complementary technologies such as heat pumps which utilise thermal energy in the air for water heating using technology developed for air conditioning. The company has further enhanced its supply chain to include specialists involved in air conditioning to make this technology available when an equally energy efficient alternative to solar water heating is required. The Innovation Group renewable energy solutions initiative presents a ground-breaking approach to energy saving and, should the project reach its target, it will reduce energy consumption at a rate equal to the generation capacity of one entire national power station. This comparison puts into perspective both the ambition behind the initiative and the confidence of the corporate clients and insurers who support it. It is not inconceivable to see Innovation Group as a key facilitator for driving residential sustainable energy technologies throughout South Africa bringing much needed investment into the market. This type of investment driven growth brings a host of additional economic benefits above and beyond improving energy security including job creation and skills development which is no small achievement in such a challenging international economic environment. It goes to show how innovation is the driving force behind economic growth.
The Innovation Group Solar Team Endeavour Magazine • May 2012 • 22
Innovation Group specialises in the administration of energy saving solutions and provides complete back office support for large scale green projects. Through our comprehensive solar water heater installation and management solution, we aim to make a significant contribution towards a better and more sustainable future for all. With an international footprint and strong local presence we can assist in the design of any mass consumer or employee solar water heater rollout project. Our focus on efficiency and removal of risk ensures that all our projects run within your budget without compromising on quality control.
Call us today to find out how we can assist you to contribute towards a greener tomorrow.
INNOVATION GROUP (PTY) LTD Innovation House | 192 Bram Fischer Drive | Randburg | South Africa | Private Bag x99, Bryanston, 2021, South Africa T: +27 (0) 11 790 5821 | F: +27 (0) 11 790 5221 | E: info@za.innovation-group.com | www.innovation-group.com/sa Innovation Group is an authorised Financial Services Provider
THE SUSTAINABLE ENERGY SOCIETY OF SOUTHERN AFRICA The Sustainable Energy Society of Southern Africa or SESSA is dedicated to the use of renewable energy and energy efficiency including all solar-based energies such as photovoltaics, thermal heating and cooling, wind, biomass and hydro power. The inter-disciplinary nature of SESSA attracts the membership of industry, scientists, researchers, developers and the general public – the only qualification is a keen interest in renewable energy and its utilization to ensure a sustainable energy future. SESSA was founded in 1974 and is one of 50 National Sections of the International Solar Energy Society (ISES). The largest, oldest and most comprehensive technical body dealing with the technology and implementation of renewable energy, ISES was founded in 1954 and has representation in more than 100 countries.
SESSA is the duly appointed African office of ISES and has a position on its board. The current SESSA representative is mechanical and mechatronic engineering specialist, Professor Wikus van Niekerk of Stellenbosch University. Objectives • Promoting and increasing the use of renewable and energy efficient technologies with informal education, demonstration and information dissemination to endusers and decision makers of all levels; • Establishing the society as the main regional information centre in close co-operation with similar initiatives; • Facilitating the creation and maintenance of appropriate standards for products, systems, methods and training;
• •
Supporting initiatives that promote the creation of local ‘green-collar’ jobs and highlight green enterprise opportunities; Lobbying government, big business, civil society and parastatal organisations towards adopting a low carbon energy future.
Structure The SESSA office is currently headed by acting-CEO, Theo Covary. A GIBS MBA graduate whose dissertation title ‘Renewable Energy - Benefits of Converting Urban Households to Solar Water Heating’ has direct application to his role within SESSA, Covary is currently a director of Unlimited Energy, a research and strategy based consultancy focusing on energy efficiency and the resulting impacts and benefits for business.
Over the years, he has worked on numerous sustainable and renewable energy projects partnering with companies and organisation such as the Industrial Development Corporation, the International Energy Agency (IEA), UNDP / GEF Standards and Labelling programme (Kenya), Eskom, the Clean Technology Fund, Margate Sands, Kees Beyers Chocolate, Pretoria Boys High, Saheti School, St Stithians School, Absa Insurance and the City of Johannesburg. The acting-CEO reports directly to the SESSA Council, which consists of the elected member-volunteers, as well as one representative of each of SESSA’s divisions (normally the division chairman). Council members are elected for a two-year period. SESSA divisions are either technology groupings, or interest groups like the opportunity builders, Young SESSA. Executives are volunteers for each division who are voted Endeavour Magazine • May 2012 • 25
for by the specific membership of that division every two years. Various Portfolio Managers are elected by each division from the executive to ensure that the divisions are represented in all spheres and replicated across various divisions. Typical portfolios include: Members & Finance, Complaints & Compliments, In-house & Legal, Standards, Communications, government, Parastatal & Corporate, Finance & Insurance, Associations, Education and Training and Local Manufacturing. Importantly, SESSA also provides consumers with recourse through its Ombudsman, Carel Ballack. Ballack has extensive experience in electrical infrastructure and water reticulation installations, his move into the sustainable energy industry started in 1999 when he and a partner started importing unfinished thin-film silicon panels in a bid to develop systems that would find a market in Southern Africa, such as solar powered traffic lights. Over the years, the company experimented with larger systems and hybrid systems combining different technologies such as wind power and photovoltaics. Ballack has spent the last three years in Johannesburg project managing large electrical infrastructure installations, and immersing himself in business and project management. A passion of his is managing data and using logic control systems to improve energy efficiency in large buildings. Industry Compared to developed countries in Europe and North America, South Africa’s sustainable and renewable energy sector is under-developed. 90% of its electricity is from coalfired power stations, ranking it in the top 15 global polluters.
South Africa experiences some of the highest levels of solar radiation in the world at anything between 4.5 kWh/m2 and 6.5 kWh/m2 while parts of Europe receive only 2.5 KWh/m2. At COP15 in Copenhagen, Denmark, in 2009, South Africa’s President , Jacob Zuma, committed the country to reducing its emissions growth path from a ‘business as usual’ track by 34% by 2020 and 42% by 2025. Leading the country’s bid to achieve this goal is the government’s Renewable Energy Independent Power Producer Procurement Programme (IPP), a landmark project designed to stimulate the country’s renewable energy sector. Tying in with Zuma’s promises, the goal is to generate 42% of all new electricity from renewable energy sources over the next 20 years. Technologies under consideration include solar, wind, hydro, biomass and biogas. All told the capital investment associated with the programme is expected to be more than R100-billion. In fact, the relevant documentation states that some 17 800 MW of renewables capacity should be deployed between 2010 and 2030, with wind and solar photovoltaic expected to deliver 8 400 MW of capacity each, and concentrated solar thermal a further 1 000 MW. In the first phase of the project, the Department of Energy said it would procure 3 725 MW. The allocation sees 1 850 MW set aside for onshore wind, 200 MW for concentrated solar thermal, a further 1 450 MW for solar photovoltaic solutions, 12.5 MW for biomass and biogas respectively, 25 MW for landfill gas capacity, 75 MW for small hydro, and a further 100 MW for small-scale IPP projects of less than 5 MW. In April 2011, the Department of energy confirmed that it
had received a total of 79 tenders during the second bidding round of the first phase of the programme, which closed on March 5. These 79 tenders represented some 3 233 MW of potential power generation capacity, which is almost three times the 1 275 MW allocated for the March window. A further 2 300 MW is still available for allocation under the programme at a future date. SESSA believed the ‘over subscription’ was an indication of South Africa’s appetite for renewable energy, as each tender represented a distinct and separate installation. It recommended that government speedily resolve all legal requirements for locking in successful bidders, and then proceed with the next round of bidding as soon as possible to capitalise on the interest. It also suggested that Government consider increasing its target of 3 725 MW of renewables capacity. The fact that the second round of bidding has attracted nearly three times as much capacity as called for indicates that the 2016 target may be set too low, Covary said. Most of the technology specified in the bids received is coming from abroad; SESSA said it was to be expected but stressed that future bidding rounds must demand higher local content and skills. This should be a key consideration when negotiating new trade agreements with key trading such as BRICS or other regions, as it may create conflict between different policy objectives. For example Solar Water Heating installations have increased dramatically, with over 180,000m² last year. Unfortunately most of these were imported and at least two long standing manufacturers have closed down. Government
tasking industry with creating ‘green jobs’ is one thing; in reality it is very difficult to implement if local content and skills targets are not set and enforced, SESSA said. Additionally, SESSA suggested Government begins ring fencing the revenue it received from carbon taxes, and using it to grow the industry instead of ploughing it into other service delivery areas. The latter, sends the wrong message about the importance of renewable energy and does nothing to support the fledgling industry, which requires financial incentive to spur on further growth. Another of the steps taken to assist South Africans along the path of achieving this goal is new national building regulations relating to efficient energy usage in new buildings. These came into effect in November 2011 and relate to energy efficiency in some of the following areas: hot water supply, energy usage, insulation, building, floors, design, orientation and windows. Any plans submitted after this date will have to comply with these energy efficient regulations, largely relating to hot water usage and energy efficiency. The regulation, or SANS 10400XA, states that at least 50% of the annual average hot water heating requirement will be provided by means other than conventional electricity like the existing electrical geyser and be complimented by either solar water heating, a heat pump, heat recovery or a renewable combustible fuel. SESSA also noted that if all South Africa’s new homes and commercial buildings undertook mandatory ceiling insulation and advanced window systems in commercial buildings immediately, an estimated 3800 MW in electricity could be saved by 2020. Endeavour Magazine • May 2012 • 27
BLADE RUNNER PP Techniq www.pptechniq.com +45 7488 7288 Written by Martin White
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PP Techniq
Wind power is a highly innovative industry where a significant proportion of company revenues is invested in research and development. Whilst a great deal is invested into the design of turbines to increase their energy generating capacity this has set a trend for ever larger turbines and presents challenges in keeping them operational. Endeavour Magazine looks behind the scenes at advances in wind turbine maintenance to keep the blades turning. Wind power is one of the fastest growing energy sources in the world. In the EU alone investment in new wind farms exceeded €13 billion during 2010 with almost 20% of all new energy electricity generating capacity now coming from wind power both on and offshore. There can be little doubt that this is a large and growing market but an often overlooked issue relates to the maintenance of existing wind turbines. The design, construction and material composition of wind turbines has changed dramatically since the first utility scale wind farms were developed in the late 1970s and all turbines must be maintained and repaired in the event of failure. From a financial perspective it is imperative that wind turbines are kept operational at all times but in some cases shutdown becomes unavoidable. Wind turbine blades are ever increasing in size with rotor diameters now reaching
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over 150 meters for the largest of turbines and historically repair and maintenance of these blades has been a major task. Often the repair of wind turbine blades will involve complete removal of the hub and bringing the blades to ground by crane which presents more challenges when turbines are situated offshore. This is extremely capital intensive in a market where cost control is of absolute importance. PP Techniq, founded in 2003 by inventor and current director Paul Teichert, is a company established to develop advanced and cost effective applications for the wind energy sector. The company specialises in the development of new technologies and innovative use of materials by working alongside a range of leading specialist consultants and technology partners. The flagship innovation from PP Techniq is the “FF360” blade guided access and maintenance platform which allows safe 360 degree access to wind turbine blades. The system allows access for two workers who can adjust their position in relation to the wind turbine blade to perform maintenance and inspection duties from a safe and stable operating platform. The system can also be used to carry equipment for scanning, cleaning and surface treatment meaning that most maintenance duties can be performed with little disruption to turbine operation. Gert Vinther Knudsen, Project Manager for PP Techniq explains: “O ne of the main challenges the wind industry faces is how to set up a programme for regular inspection and overhaul of the blades (one of the most important and expensive components on a wind turbine) to ensure maximum output and to minimise costs and downtime throughout the turbine´s full lifetime. “There is a need to access the installed blades in a cost effective way for inspection, surface treatment, cleaning and repair due to damages caused by handling and production failures and due to impact by hail, rain, salt, lightning etc. The blades are working under extreme conditions at very high speed! Furthermore there is a need to access the blades for aftersales activities to optimise the blade´s aerodynamics to increase output. “These challenges will only increase with time as blades are going to become increasingly large and increasingly more advanced and will be installed in large numbers on huge turbines both on- and offshore.” “The Blade Guided System makes it possible to access rotor blades independent of distance from tower to blade, length of blade, height and type of tower. Due to the controlled grip on the blade the platform is serving as a safe and calm working platform even when there are sudden changes in wind speed
PP Techniq
and direction. Furthermore only by being in firm contact with the blade the exact position of the technician and/or equipment can be fully controlled. Thus the technicians can focus on doing the work in a safe and fast manner, to keep downtime at a minimum. “The Blade Guided System will be the ideal carrier of tools and robots to carry out semi or fully automated process on blades such as surface treatment, cleaning, inspection and NDT (non-destructive testing). “From our perspective; alternative solutions such as tower based solutions, rope access, baskets hanging in a crane etc. will soon come to their limit due to the obvious challenge to access the increasingly larger blades. “ The ideas behind the Blade Guided System have been patented worldwide. “Today we have realised the Blade Guided System in our FF360-platform which has been type-certified according to CE regulation for use on-shore. Furthermore we have made design studies on alternative Blade Guided solutions to be developed according to customers specific needs. “ The versatility and ease of rigging for the system also helps to minimise the time a turbine is taken out of operation and helps improve productivity as maintenance duties are carried out. Recognising the potential of a sophisticated, reliable and fast working platform for wind turbine maintenance Force Technology has worked in close collaboration with PP Techniq to adapt a compatible non-destructive testing system used to analyse blade condition. Force Technology has extensive experience in non-destructive testing methods including development of lightweight and compact ultrasound scanning systems which allow detailed analysis of surfaces and internal structures. The Force Technology in house developed “P-Scan” testing equipment allows fully automated inspection of the blade surface and internal structure enabling assessment for wear, fatigue or damage. “Our concept has been designed to support the use of automated equipment for maintenance work and Force Technology is a leader in providing on-site automated
Endeavour Magazine • April 2012 • 32
scanners for non-destructive testing of wind turbine blades but the challenge for them is finding ways in which scanners can be used along the length of the blade itself. Through adapting a scanning system to work with the blade guided system we have been able to provide a platform which allows for constant and stable scanning across the entire length of the blade.” Non-destructive testing methods have proven to be highly effective as a preventative measure to avoid down time in wind turbine operation by allowing potential blade failure problems to be identified and rectified as early as possible as part of a regular maintenance and inspection programme, the platform developed by PP Techniq also means maintenance work can be performed quickly with minimal disruption. “The key focus remains on preventative testing. Even under normal conditions blades are subjected to high levels of stress. For example a wind turbine blade operates at 350 kph and at this speed even small particles in the air will have an abrasive effect on the blade surface. This abrasive effect causes wear to the blade and means regular testing and maintenance of the blade surface is very important to prevent further damage which over time could lead to failure.” Today, in a challenging international economic environment, wind energy is coming under intense scrutiny and governments must demonstrate careful planning and budgetary control when formulating energy policy, the industry must do what it can to enhance the productivity and cost effectiveness of wind power. It is undisputable that investor confidence remains in wind power with the sector contributing a total of €32 billion to EU GDP during 2010 and creating 30% more jobs when EU unemployment rose by 9.6%. In order for confidence in the industry to be maintained it is vitally important that operational wind farms are as productive as possible and down time is kept to an absolute minimum. Innovations such as those demonstrated by PP Techniq and Force Technology go a long way in improving the efficiency of wind turbine maintenance and such effective use of technology can only contribute to the long term prosperity of the industry.
Blade Guided System Solving the challenge to access installed rotorblades in a safe and fast manner to keep turbine downtime at a minimum. Independent of distance from tower to blade, shape and length of blade, height and type of tower.
PP Techniq ApS Nordborgvej 81 DK-6430 Nordborg Denmark info@pptechniq.com +45 74887288 www.pptechniq.com
Cape Town Municipality www.capetown.gov.za +27 21 401 4701 Written by Jack Slater
THE MOTHER CITY DESTINATION FOR BUSINESS AND TOURISM
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Cape Town Municipality
Cape Town is the second most populated city in South Africa and is the seat of the National Parliament; it is also the legislative capital of the country and forms part of the City of Cape Town metropolitan municipality. Famous for its harbour, its floral kingdom and its weather, it has the (much-marvelled) landmarks of Table Mountain and Cape Point. Located on the shore of Table Bay, Cape Town was originally developed by the Dutch East India Company as a supply station for Dutch ships sailing to Eastern Africa, India, and the Far East. Jan van Riebeeck’s in 1652 established the first permanent European settlement in South Africa. This quickly outgrew its original purpose as the first European outpost at the Castle of Good Hope,
becoming the economic and cultural hub of the Cape Colony. Today it is one of the most multicultural cities in the world, reflecting its role as a major destination for tourism and business to South Africa. An estimated population of 3.5 million and a land area of 2,455 square kilometres (948 sq mi) make it larger than other South African cities.
Schindler Lifts In Partnership with the Cape Town Municipality Schindler Lifts is one of the largest suppliers of new escalators and elevators in Southern Africa and sub-Saharan Africa today. The Schindler Group was founded in Switzerland in 1874, and now employs 43,000 staff worldwide. It is one of the leading global manufacturers of elevators, escalators and moving walks, with a network of over 1,000 branches spanning every continent. The parent company Schindler Holdings Ltd. is listed on the SIX Swiss Exchange. Schindler provides elevator and escalator systems for all environments, from smaller residential and office buildings to commercial towers, hospitals, heavy-traffic environments and high-rises. Outline of the Cape Town Municipality Project: Schindler Lifts (SA) (Pty) Ltd have recently tendered, and were awarded the contract to Modernize/Replace 25 lifts in the Cape Town Civic Centre. The project scope includes fourteen (14) of these lifts for High-Tech Modernization, and with PORT, Schindler’s Groundbreaking new Technology to manage the flow of passengers, and eleven (11) lifts with full replacement Machine Room Less lifts.
+27 11 681 8888 sales@za.schindler.com www.schindler.com
COMMITTED TO PLAYING A CONTRIBUTING ROLE IN IMPROVING THE ROADS OF THE WESTERN CAPE
TEL 021 -975 0784 FAX 021 - 975 0792 E-MAIL INFO@MOREASH.CO.ZA WEB WWW.MOREASPHALT.CO.ZA
By using the best available technology to produce asphalt in an environmentally responsible manner we are helping to provide a better life for all our citizens. Endeavour Magazine • May 2012 • 37
Cape Town Municipality
An Introduction to Cape Town by City Manager, Achmat Ebrahim “Cape Town is a city that caters perfectly for work and play. Its unique natural environment, culture and impressive business infrastructure make it one of the most attractive cities in the world for tourists, job-seekers, entrepreneurs and investors alike. Thousands of tourists visit the Mother City every year because it is the quintessential melting pot: a city alive with creativity, colour, sounds and tastes. The accolades speak for themselves. Most recently Cape Town was named: • The World’s Top Travel Destination in Trip Advisor’s 2011 Traveller’s Choice Destination Awards; • The second best beach city in the world for 2011 by Lonely Planet; • The top city in Africa and the Middle East and 13th in the world in the 2010 Condé Nast Readers’ Travel Awards; • One of the top ethical destinations in the world by Ethical Traveller. Tourism Cape Town is also a premier destination for local and international events. It was not only a successful Host City during the 2010 FIFA World Cup™, but is also home to the Design Indaba; Infecting the City Public Arts Festival; Cape Argus Pick n Pay Cycle Tour; Cape Town Carnival; Cape Town International Jazz Festival; and the Old Mutual Two Oceans Marathon – during the first half of this year alone. The City has also been selected as World Design Capital for 2014, giving the City an opportunity to showcase its creative flair in using design to transform lives and improve service delivery.
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Business In terms of business, Cape Town is considered a global entrepreneurship hub. The City’s long-term strategy, known as Cape Town Activa, seeks to develop an eco-system for promoting entrepreneurship by creating an enabling environment that improves the cooperation between all of the key functions needed by entrepreneurs, i.e. research and innovation; business schools; venture capital; consulting and export support. As part of Cape Town Activa, the City recently hosted Launch Cape Town – a five-day event that brings together start-up entrepreneurs, investors, media and other like-minded Capetonians for networking, coaching and mentoring sessions as well as Cape Town Entrepreneurship Week. This is over and above the on-going training, learnership, apprenticeship and internship programmes offered by the City. Transport/Infrastructure Cape Town’s unfolding public transport infrastructure plays a vital role in providing everyone with access to opportunities, whether for economic, education, health, recreation or social purposes. The public transport system took another big step with the launch of several convenient, reliable and affordable MyCiTi bus services. These include the first main route between Table View and the city centre, with a dedicated bus-way that cuts travelling time by half during peak hours. Complementing the main route are four feeder bus services: three in the Table View area and one that runs through the city centre, from Gardens to the V & A Waterfront, via the Civic Centre, Foreshore and Green Point. The service is being extended to Khayelistha and Mitchells Plain and the inner-city including Camps Bay and Hout Bay.
Joburg Water www.jwater.co.za +11 375 5555 Written by Jack Slater
KEEPING WATER RUNNING AND CLEAR Endeavour Magazine • May 2012 • 41
Joburg Water
the Highveld and its elevation of 1,753 metres above sea level, its rainfall is lower than some of the other major cities in the country. Specifically it is less dense than Durban’s and not as horizontal as Cape Town’s. Being one of the major business hubs in South Africa it has a vast and diverse population of people all of which enjoy the benefits of the cleanest tap water in the world. This has not happened by chance but rather by design and Johannesburg Water is responsible. Johannesburg Water (JW) was established in January 2001 as an independent company and like the JRA (see our April 2012 issue for details), the city of Johannesburg is the sole
In our continuing series about the companies looking after the basic needs of people, Jack Slater has a look at the operations and day-today success secrets of Johannesburg Water. Johannesburg is the constitutional hub of South Africa and due to its high yield of diamond and gold mining it is also the largest city in the world not situated near a river, lake or coastline. The provincial capital of Gauteng, the wealthiest province in South Africa, it has the largest economy of any metropolitan region in Sub-Saharan Africa and is one of the fifty largest metropolitan areas in the world. Due to its landlocked location in the eastern plateau known as
shareholder. The company formation is an outcome of the iGoli 2002 transformation plan embarked on by the former Greater Johannesburg Metropolitan Council. It has been mandated with the responsibility of providing water and sanitation to three million residents of the City of Johannesburg and in doing so provides jobs to 2400 people. As one of the key employers in the city, Johannesburg Water has achieved their high standard of customer satisfaction as a direct result of their efforts to keep their employees/staff well trained, highly developed and at the front lines of their individual skill sets. There have been many hurdles and problems to overcome. In South Africa there is a shortage of skilled labour across the board in the forms of engineers and technicians increasing the demand for highly trained individuals with the experience to handle major projects. Compounding the problem is that
for career development to occur in many businesses within the city an engineer is required to take on a managerial role after a certain amount of time so that he or she can manage other engineers. Unfortunately this caps the engineering experience that can be found in any said industry sector. To change this, Johannesburg Water has incorporated PPP - Public Private Partnership. This encourages engineers to progress their careers into higher earnings while allowing them to remain hands-on with their particular areas of expertise ensuring that the experience cap is lifted higher and higher throughout a sector. A further step is the ECP - Engineering Capacitation Programme, a drive to support young engineers into getting registered. With the aim to get all engineers associated with Johannesburg Water on programmes that will lead directly to professional qualifications. Endeavour Magazine • May 2012 • 43
Joburg Water
“In line with The City of Johannesburg skills development programme, Johannesburg Water has developed a programme to address the skills and competency needs of staff. New challenges demand that staff perform optimally to meet the identified needs and changes that can also impact on processes, necessitating rapid adjustment by the departments. With this in mind, JW aims at invigorating the progress around skills development driven by the programme priorities rather than the compliance requirements of the Skills Development Act.” - Johannesburg Water. There is a vision that guides Johannesburg Water and this is to become the leading water utility in the republic of South Africa. If you take clean water for granted then you may fail to recognize the weight of such a vision but there are three million people who rely heavily on it. However, their vision is not limited to drinking water as Johannesburg Water is responsible for all aspects of water usage including sewerage and sanitation. While water may be the simplest thing on the planet, transporting it from A to B is not, especially when you’ve promised to deliver clean water to all areas of a city. To safeguard their delivery, the aim to deliver a sustainable, affordable and cost effective service by upgrading the services in low income areas and creating a strong customer focused culture. Combine that with building capacity through the development of their employees with a particular emphasis on those who were previously disadvantaged and by improving protection of the environment. This is clearly seen in projects like The Expansion of the Driefontein Wastewater Treatment Works where the overloading of wastewater treatment infrastructure resulted in severe pollution of neighbouring rivers to the detriment of health services, the environment, social activities and downstream domestic and industrial water users. As the demand for water increased due to economic expansion and population growth in the City of Johannesburg, so did the pressure on the wastewater treatment at Driefontein. This situation resulted in Johannesburg Water stepping in to find ways of improving the quality of the water resources. Johannesburg Water has embarked on a number of farreaching projects of infrastructure upgrades and increasing wastewater treatment capacities such as the Driefontein Wastewater Treatment Works. On Wednesday, 28 March 2012, Johannesburg Water unveiled its plans to expand the current capacity of the Driefontein Works. The aging wastewater treatment infrastructure in conjunction with the rapidly growing needs of the City prompted Johannesburg Water to invest in infrastructure upgrades as part of their broader vision for accelerated service delivery across the city. The Driefontein project has increased the treatment capacity from 30 mega litres (a million litres) per day to 50 mega litres per day and provision has been made for a further expansion to the ultimate capacity of 80 mega litres per day. The construction phase of the project commenced in May 2011 and anticipated completion date for the civil, mechanical and electrical work is the end of October 2013. All the mechanical equipment was selected for their energy efficiency and low, long-term maintenance and special attention was paid to corrosion protection. As always, Endeavour Magazine seeks to highlight the companies that will be leading their industries and their nations into the future. And by looking after the small things first, Johannesburg Water is set to do just that.
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ALL ABOARD! Banbros Ltd www.banbros.co.ke +254 720 512616 Written by Chris Farnell
Endeavour Magazine • May 2012 • 47
Banbros Ltd
Banbros Limited is a true success story. Over the last two decades it has gone from a newly founded subsidiary company to a well-recognised name in the industry. Banbros Limited came into being 22 years ago in 1990. When its operations started up in 1993 the firm had a staff of only 50 people and capital assets of Kshs 11.5 million, but since then it has gone from strength to strength. Under the guidance of its parent company Sarwan Singh Bansal Ltd the company has achieved a strong reputation building bodies for a huge variety of buses, shuttles and trucks. Their products can be found throughout East Africa (Kenya, Tanzania, Uganda) and its environs Burundi, Rwanda, Sudan, Malawi, South Africa, etc. From school buses, vans and trucks to specialist touring vehicles and luxury coaches Banbros’ work is on display everywhere. Within a decade Banbros Limited established a new assembly plant, expanding their capacity to meet growing demand. Today the company is operating out of a brand new, state of the art workshop off Mombasa Road in the
Mavoko municipality. Its workforce has grown from a mere 50 people to over 200 members of staff, all trained up to the best practices in the industry. A Growing Clientele One of the factors behind the company’s success has been its ability to service such a wide slice of the market. The peak levels of customer satisfaction and product excellence that Banbros Limited has provided across Africa has made it a name to be reckoned with and several top names swear by the firm’s products. Among Banbros Limited’s more prestigious clients you can find CMC Motor Group Limited, General Motors East Africa Limited, Kenya Grange Vehicle Industries Limited and TATA Africa Holdings (K) Limited. Working with these companies Banbros has supplied
bodies for coaches ranging from luxury or deluxe models, to semi-luxury models, to school buses, lorries and vans, not to mention numerous custom designs. The firm is always open to new challenges, its staff firmly believing they can fabricate anything to meet their customers’ needs.
ensure that their staff receives the best industry knowledge available. Banbros really believes in investing in its existing staff. Over the last twenty years the company has learned that the best approach is to work with people you know, and to give them the opportunities to learn the skills that you need.
The Right People For The Job Banbros Limited has been able to serve such a wide variety of customers with such a diverse set of needs because its 200 strong workforce is up to the job. Seeing its employees as its most valuable resource, Banbros make absolutely sure that their staff receives the best possible training. Sometimes this training takes place in-house, with the company utilising its more senior staff for the role. Often however, Banbros will bring in training specialists from as far afield as India to
The Right Equipment Of course, the best staff in the world isn’t much use if they don’t have the right tools to do their jobs. Banbros Limited is dedicated to constantly improving their products through a rigorous programme of research and development. Right now the company is aiming to ensure that its body fabrication is more standardised through the construction of modern jigs and fixtures that will guarantee more consistent quality across its product range. Endeavour Magazine • May 2012 • 49
Banbros Ltd
The company has also invested in a pair of fully CNC bending and punching machines. These machines allow Banbros to prefabricate any components that the company could conceivably need at the highest possible quality. The machines are even now fabricating bus body parts and generator canopies, but Banbros isn’t stopping there. The firm is always looking to improve the range of equipment at its disposal, and also has access to tools as advanced as high pressure polyurethane injection machines for the manufacture of seat foams. Often the firm will search far and wide to make sure they are buying the best equipment available, such as the guillotine they have recently purchased from Haco in Belgium. However, the company’s constant drive to bring in the latest and best equipment doesn’t mean they’re quick to dispose of what they already have. The company’s philosophy has always been “treat it well and it will serve you well”. While things may need replacing from time to time when they become obsolete, Banbros makes sure to get as much use as it can out of every piece of equipment. Alongside the company’s staff and equipment, Banbros also recognises the importance of using the best materials in its products. Where possible, this means sourcing materials locally, a practice that the government has been strongly promoting lately. For instance, the firm makes good use of locally produced raw materials. Sometimes however it is necessary to go further afield, and so Banbros tends to import locks, fittings and ironmongery from overseas.
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Looking To The Future Currently things are going well for Banbros Limited. Working from a central location, they let clients come to them, often bringing independently sourced chassis for the Banbros team to work on. It hasn’t all been plain sailing however. While up until 2009 the company’s growth went pretty much unchallenged, like most businesses Banbros felt the bite of the global recession. As Kenya’s government has attempted to curb debt the country has seen interest rates rise, as have fuel prices and housing costs. But alongside these challenges come new opportunities. With an election on the horizon, the government is attempting to fight congestion. One of the areas they’re looking at for possible improvement is the phasing out of small, 14-seater minibuses in favour of larger coaches with better seating, reducing both traffic and pollution. Always ready to adapt to change, Banbros Limited is responding to this by presenting a range of larger buses. While these buses are more expensive, particularly in the face of high interest rates, the government has stopped licensing smaller buses, so Banbros is expecting the trade here to improve. The company is leading the way in terms of innovation and business practices. With an aggressive mentality and an ability to continually spy out new markets - whether it’s the larger buses needed in Kenyan cities, or the demand for Overlanders by the tourist trade, Banbros is always ready for the next big thing.
GM Graphix www. gmgraphix.com +27 11 908 5136 Written by Ben Walker
CHANGING THE WORLD ONE LABEL AT A TIME Endeavour Magazine • May 2012 • 53
GM Graphix
The performance text for the print sector reads uneven and blurred. Slapped by evolving technology including digital print, traditional advertising and media printing is on the decline. But this is a scenario of changing markets rather than modal retreat, and the big growth area world-wide is packaging, a positive development for innovative companies like GM Graphix of Alberton near Johannesburg.
Established twenty three years ago to supply flexographic cost effective printed packaging material to the fast-moving consumer goods and pharmaceutical sectors, GM Graphix is now a leading supplier of high-quality label solutions such as sachets, self-adhesive labels, unsupported film and shrink sleeves. It has always been a ground-breaker. In March of 1996, it became the first flexo-printer in South Africa to be awarded with an ISO 9001/2000 certificate, and a strategy of pioneering technological advances has seen the company move well beyond self-adhesive labelling that had once been its core market. Reaching into sectors as diverse as foods and beverages to electronics, health and personal care, GM Graphix big-name brand clients include L’Oreal, Revlon, Alberto Culver, Wrigley’s and Douglasdale dairy supplies. General Manager and packaging technologist Junior Massyn puts its domestic market share at 2-3%. “Our BBBEE classification is a large enterprise, and I’d say we are surely moving in a corporate direction.” Flexographic presses produce quality impressions on many different substrates - the base material on to which images are printed. It’s the least expensive and simplest of the printing processes used for decorating and packaging printing and its popularity is on the rise. “Seventy per cent of a customer’s in-store decision is based upon the packaging and it’s becoming increasingly
important for consumers and customers to protect their brand.” And with counterfeiting a big and increasing issue, GM Graphix products are made for identification. “We have many packaging solutions to identify and decorate a product, and flexographic printing, more than most other methods, protects packaging and adds to the authenticity of a product. “The flexographic industry has grown since the 1980s in leaps and bounds through technology, efficiency and flexibility and is now a very advanced form of printing, value adding to any packaging sector.” Maintaining constant innovation and product development has led to consistency of quality as well as cost efficiencies. GM Graphix was the first South African printing company to purchase a MPS servo press, while the introduction of rota silkscreen opened a big door into the cosmetics market. Now after a string of similar innovations, it has become the first South African printing company - and probably a first in the southern hemisphere - to print on the UPM Raflatac ProLiner PP30, a fully re-cycleable backing material made of polypropylene. After extensive research and preparation with several suppliers – UPM Raflatac, Ipex Machinery, Flint Narrow Web and MPS – GM Graphix offers its customers a cost-efficient, quality proposition combined with an original recycling opportunity, incorporating the cooperation of local recycling company, Plasticomp. “ProLiner PP30 offers several application, quality and cost benefits to our customers. But there’s even more we
ProLiner PP30 is now available with both Paper and Film labels UPM Raflatac’s pioneering ProLiner® PP30 liner solution has many benefits for printers, packers and end-users. Productivity and quality improvements, lower logistics costs and recycling benefits make it a real game changer in labelling. With ProLiner PP30, you can reach up to 20% increase in end-to-end efficiency. ProLiner PP30’s superior advantages are now available with both paper and film labels.
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Endeavour Magazine • May 2012 • 55
GM Graphix
can offer,’ says Massyn. “The unique feature is that it’s recyclable, and this means we have an opportunity to help the environment and reduce our customers’ waste.” The objective he says, is to introduce a collection and recycling service with the assistance of local company Plasticomp, and provide a revolutionary ‘total’ product offering to G.M. Graphix multinational and local customers who choose ProLiner. “Our drive is to be able to manufacture products where the waste, i.e. backing paper or liner- can be re-cycled in future. As things stand a normal backing material cannot be re-cycled. We want to start producing on more eco-friendly materials that do not leave such a giant final-user footprint, and that allows companies buying our product to re-cycle and generate profits out of the waste.” South African printing technology is on a par with Europe, but competition from the East is rising. “Many of our customers in South Africa are importing finished products from China and India where wages and production costs are so much lower. As time goes on they will become more efficient at importing and whether I am ten km or 1,000 km away from a customer is immaterial. I am seeing this daily and I can imagine it’s going to impact our market even more in future.” GM Graphix response, says Massyn, is customer selection. “We have invested knowledge, money and time into equipment that can give a client something so specific that it would take another company a very long time to get
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exactly the same equipment and copy our product. We can supply a customer a label construction made out of cold foil, hot foil, rota silkscreening and even embossing on the same label. I can count on one hand the companies in South Africa that can do the same. And because our technologies are more advanced this creates a bigger market.” Customer needs are analyzed to create the most successful packaging solution, says Massyn. “Our service includes strict policies concerning quantity, cost and delivery. And by employing basic principals such as continues training and consistent awareness of customer needs, we add to our recipe to grow while ensuring our customers get what they require. “And whether our orders and enquiries are from corporate customers or small independent companies, we value them, and try to give them an holistic packaging solution.” Where will GM Graphix be positioned in three years time? “As a specialist in pharmaceutical and cosmetics printing and packaging. We have a passion for packaging and all that goes with it. “Why choose us? We’ve been around for over two decades, have new and very good technologies and acquired skills and knowledge. We are running at optimum efficiency, ensuring costs do not spill over to our customers. We provide cost effective packaging solutions through the knowledge we’ve gained over the years, and we maintain quality and consistency because of this passion for packaging. “Our slogan is ‘Where Every Label Counts’ - and we deliver on that promise.”
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Your Tooling Solution to Hot Stamp Foiling Endeavour Magazine • May 2012 • 57
East Africa Glassware Mart Ltd www.eagm.com +254 41 222 6261 Written by Daemon Sands
TOUCH OF GLASS
Endeavour Magazine • May 2012 • 59
East Africa Glassware Mart Ltd
EAGM was established in 1951 in Mombasa, Kenya and is a privately owned family business currently being headed by the third generation of the family. In the last 20 years EAGM has expanded regionally to Uganda, Tanzania and has recently begun operations in Southern India. The Mombasa base today serves as the Head Office for the entire group. From the time of inception, EAGM has partnered and promoted Arc International’s (then JG Durand Et Cie) brands, starting in Kenya and expanding to Uganda in the 1960s. However, the Uganda operations were closed due to the poor political climate at the time. In the following years, the Kenyan market evolved with the emergence of a strong middle class, which saw formal retailing develop, helping the Kenyan business grow to new heights. It was at this stage that the third generation entered the business arena to capitalize on the economic growth in Kenya and to drive the expansion into Uganda (1993) and Tanzania (1996) with the same brands from Arc International. Within a short time, EAGM decided to invest in properties in Kampala and Dar es Saalam, which now houses its offices, showroom and warehousing facility to service the local markets. EAGM in 2009 partnered with Arc International, RAK Porcelain and Sunnex to begin EAGM Hotel & Catering Supplies, focusing on the Food Service segment in India. It has since set up its Indian head office in Chennai and has spread, with satellite showrooms in Kochi, Bengaluru and Ahmedabad. As the South of India is so vast, EAGM has
strongly worked on its distribution model and appointed distributors in the main cities and towns across the states of Tamil Nadu, Andhra Pradesh, Karnataka, Kerala and Gujarat. EAGM has constantly increased its product range to better serve its customer base and provide a total solution to their tableware needs by introducing porcelain, plastic & stainless steel table & kitchen accessories. This forms a smaller part of the EAGM’s business but has continued to grow due to new introductions of products within these categories. Arc International continued to evolve, which brought about the separation of brands for Consumer Goods and Food Service segments. The “Luminarc” brand was allocated to Consumer Goods whilst the “Arcoroc” brand was allocated to Food Service. At this stage EAGM also embarked on its own separation into two business divisions, the Consumer Goods sector servicing the organized retail through the retail segment and the Food Service sector servicing the lucrative hospitality industry. EAGM has since seen strong growths in both its divisions by creating specialized & responsible teams in each of these divisions, with a strong focus on providing unmatched customer service, modern marketing
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East Africa Glassware Mart Ltd
methods and constant upgrade of products to enhance sales. Arc International believes in developing and innovating its products to help keep itself ahead and is by far the market leader in tableware brands. Over the years Arc International has created new shapes, glass material, designs and décor to make tableware fashionable and trendy attracting the young and fashion conscious shoppers. For the hospitality sector, Arc International has been able to demonstrate and lure customers towards using its “kwarx” drinkware to improve the taste of wine so that the customers directly benefit from the revenue on increased wines sales. The success of EAGM has largely been due to its ethical approach and its culture that has been shared and passed down through the generations and within the organization. EAGM has also been able to create strong relationships and bonds with all its business partners, resulting in mutual benefits for all. Over the years EAGM has evolved and made changes to modernize and embrace technology, helping it to remain in stride with the fast changing business environment. With all this, EAGM continues to dominate as the leading tableware distribution house in the region. In the last 20 years, EAGM has managed to professionalize and work towards creating an organizational structure, which has brought about the creation of a management team consisting of Board of Directors, Regional Manager, Group Financial Controller, General Managers for each EAGM Unit, Marketing Managers, Operations Managers & Group IT Manager. The Directors have personally played a part in placing & grooming each of the above key appointments and have encouraged autonomy and passed on responsibility to the management team. This has seen the managers’ work independently to deliver the desired results to the shareholders. The strong ability of the Directors to continually motivate, lead by example and a hands-off approach yet available as and when required has seen strong development of the management team. In the Consumer Goods division, sales executives and retail support teams have been recruited to operate in the field by visiting each and every customer or every outlet of chain stores (such Nakumatt, Tuskys, Uchumi) to carry out merchandising of their shelves, stock assessment, preparing reorders, installation of POSM and execute instore promotional activities. This service is unique in the tableware segment and has strongly helped EAGM increase shelf off-take of its consumer goods brands. In the Food Service division, EAGM has continued to dominate its leadership position in each of its market by providing a wide variety of products from world’s leading tableware and catering brands such as Chef & Sommelier, Arcoroc, RAK Porcelain, Sunnex & recently introduced Cambro. Strong back-up stocks and the regularity of product ranges has been the key to EAGM’s huge success in the Food Service industry. EAGM’s sales executives are well trained and respected as tableware consultants to the hospitality industry. To aid the growth plan, EAGM has at the end of 2011, set up a large state of the art showroom in the Kenyan capital city, Nairobi, which is fast becoming the business hub of the region. EAGM continues to invest in its infrastructure and improve its facilities, as well as working condition environment for its human resource. With large and modern showrooms in Dar es Salaam, Tanzania and Kampala, Uganda, EAGM is
Endeavour Magazine • May 2012 • 63
East Africa Glassware Mart Ltd
now embarking on an ambitious large investment to relocate, upgrade and create Corporate Offices and a modern sales showroom in Mombasa, which will be considered as the backbone for the entire group. The new development should be up and running by September 2012. For both the divisions, EAGM has continued to strengthen its distribution network throughout each of the countries. A very thorough market mapping exercise was conducted in 2010, to understand the markets, the presence and penetration of the brands and the potential that remains untapped. This exercise has also identified new distributors across the countries that are in the process of being appointed for a stronger brand presence in each of these countries. Marketing activities for the brands have been stepped up, with each country having its own marketing calendars that has been created under brand guidelines and approvals from Arc International. Innovative marketing activities for the EAGM brands have being implemented to create a ‘top of mind awareness’. In 2012, the consumer goods division has organized a countrywide roadshow where a Luminarc truck along with an animation team will travel to the rural areas of Kenya to educate and show the unique selling points of the brand and its products. In 2011, the Food Service division carried out a launch event for a new innovative material for its dinnerware called Zenix. This was done with professional dance artists & fashion models unveiling the product range to the industry professionals invited at the launch. This activity was highly successful resulting in instant penetration of Zenix into hotel groups such as Intercontinental, Sarova Group, Tamarind Group and many more individual hotels/restaurants.
Endeavour Magazine • April 2012 • 64
EAGM on a quarterly basis conducts Business Review Meetings with its main suppliers and customers. During this, EAGM presents the performance of its business divisions and its brands, to map performance against forecasts and budgets. This has helped all partners towards achieving the common goals. The Human Resource development of EAGM Group is being addressed using professional recruiting firms and each of the recruits undergoing a thorough vetting process. New employees pass through a formal induction and training program during the first three months before they take on responsibility of their job description. The induction process involves taking the new employee through the complete business and operational processes, then a complete training on EAGM’s ERP software and finally through a CRM & sales training program. Regular monitoring and assessment on each member of the team is carried out using KPIs and is annually reviewed to identify the star performers who are then internally promoted to climb up the progression ladder of the organization. EAGM has continued to grow its workforce over time and has helped create employment in the countries of its operations. The Directors’ family has in the recent past set up a Charitable Trust through which community projects are undertaken to provide for education, water and food to the needy. Since inception of the trust, EAGM has set aside regular monthly donations to assist in these activities. The vision of EAGM is to corporatize the group, grow in the existing regions and look at further expansion through joint ventures in other parts of Africa.
Zambeef Products www.zambeef.com +260 211 369 000 Written by William Dodd
DRIVING AMBITION Endeavour Magazine • May 2012 • 67
Zambeef Products
Zambeef Products PLC is one of the biggest agricultural companies in Zambia. Every day they are producing tonnes of beef, chicken, eggs, edible oils, flour and bread as well as grains including maize, wheat and soya. It’s a huge operation, and perhaps the most challenging aspect of the business is getting all that food to where it’s supposed to be. This is where Zambeef Transport comes in. Kelly Crause has been the General Logistics Manager for Zambeef Transport for the last six years. In that time she has been responsible for a fleet of 250 vehicles nationwide, including over 80 refrigerated trucks used for the transport of meats, grains and edible oils. In her time with the company she has been left in absolutely no doubt as to the secret to its success. Endeavour Magazine • May 2012 • 68
“The reason we stand out is that we don’t hire any other companies for transport,” Crause explains. “We’ve our own fully functional workshop that caters to our whole fleet, we don’t rely on external bodies for maintenance and repair. We service everything there; we’ve our own vehicles for everything we transport, our own bakery trucks, our own refrigerated trucks, and our own processing plants. Basically
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Zambeef Products
in Zambia we’re one of the only companies with our own complete fleet.” Not outsourcing this side of the business costs the company money, but Crause is convinced that it’s worth it for the level of control it gives Zambeef over its own logistics and supply chain.
“It’s better to be able to rely on yourself” - Kelly Crause, General Logistics Manager “If you rely on external companies that means you have less control. Our entire fleet is equipped with a satellite monitoring system that we use not just to monitor vehicles and ensure that they don’t break speed limits or make unscheduled stops, but also for logistics. Monitoring our vehicles means we know how long it takes to get from one place to another. When they get to delivery points they’ve got 10 minutes to start offloading, so we’re able to chase up the vehicles at all times, and we know where our vehicles are at all times and what their turnaround times are going to be like.” A Driven Workforce Whether you’re outsourcing your logistics or doing them
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Endeavour Magazine • April 2012 • 70
inhouse, it doesn’t matter how much you monitor your trucks if you don’t have the right people in the driving seat. This is a challenge that Crause is intimately familiar with. “It is a challenge finding reliable, experienced drivers,” she admits. “We actually have quite a large turnover for our drivers because we hold them to extremely high standards. They’re not allowed to drive for long stretches of time because we don’t want them falling asleep behind the wheel. We make sure they keep below the speed limit, and that they don’t make unscheduled stops or go off route.” However the company has, over the years, acquired a core team of dedicated, reliable drivers. “We’ve a couple of old timers who’ve been here for over ten years,” Crause says. “We’ve got one guy called Albert who’s ex-army. He’s in his late 50s and he’s one of the best drivers we’ve got. He’s a fantastic guy; he looks after his truck, is a fantastic driver, knows the rules of the road and never makes illegal stoppages. We’re just trying to find dedicated drivers like him!” It’s a challenge faced by the whole industry. Pick up a newspaper in Zambia and you’ll find pages full of people looking for drivers. The adverts get a huge response as well, but even then finding the right person can be difficult. Crause tells us about the process: “When we put up adverts for drivers we can expect as many as 80 guys to turn up at the gate. Of those, 40 to 50 will have a valid driving licence. Out of them, maybe 12 will pass both our interviews and the practical tests that we ask them to complete. It’s a very strict process, and at the end out of that we might find
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Zambeef Products
three drivers we can use.” Of course, there’s good reason for Zambeef Transport to be so picky about who they hire. As Crause says: “You can’t release someone onto the roads in a 30 tonne truck who doesn’t know what they’re doing. That would be putting the public at risk. We’re dedicated to putting drivers in trucks who are professionals who know how to drive, know the laws of the road and why those laws are there.” Zambeef Products PLC is taking steps to build up the next generation of truck drivers. Firstly, given the wide array of vehicles that the company has access to they are looking to set up their own truck driving school in the near future. Secondly, they’re taking another look at how they reward the drivers they already have, to ensure that they nurture the talent already within the company. “To begin with, we make sure we offer competitive salaries,” Crause says. “The drivers are offered a very good salary along with a daily ration if they are forced to spend time away from home. On top of this we have a bonus scheme for drivers which we’re currently upgrading. We used to offer two bags of maizemeal, a staple food stuff here, for drivers who for instance, were the best at keeping their cargo refrigerated, or went without speeding, or kept their vehicle in the best condition. Now however, depending on criteria that vary between departments, drivers could get a possible bonus of 30-40% more to their salary at the end of the month.” “Drivers are valuable assets, without them our trucks would be parked,” Crause continues. “That’s why we have
such strict rules in place for our drivers. A driver from Zambeef will be snatched up by any other company because they know our drivers are well disciplined.” A Growing Fleet As well as investing in its staff, Zambeef Transport is also growing in other ways. As demand increases, Zambeef has been investing in building up its fleet. “We’ve especially had to build up our fleet of refrigerated trucks,” Crause tells us. “When I first took over we had a fleet of maybe 12 refrigerated trucks. That was five years ago. Now we have in the region of 50.” However, Zambeef isn’t blindly buying as many trucks as it can, these purchases must always be for sound business reasons. “The main thing is to make sure we always have trucks on the road,” Crause explains. “You lose money when trucks are doing nothing. Whenever we consider buying a new truck we ask ourselves, are we using the fleet to its full capacity? If not, why not? There has to be a very good reason to want to add another truck to the fleet.” For this reason, Zambeef Transport is planning a large expansion of the fleet early next year; after that they’re putting a halt on truck purchases and see if there are other ways to more efficiently use the vehicles at their disposal. With the Zambeef group looking to expand its operations in Nigeria and Ghana, the demands on Zambeef Transport are going to be higher than ever. It looks like they are more than up to the challenge.
Endeavour Magazine • May 2012 • 73
Agro Chemical and Food Company www.acfc.co.ke +254 20 233 4020 Written by Chris Farnell
CHANGING WITH THE TIMES Endeavour Magazine • May 2012 • 75
Agro Chemical and Food Company
The Agro Chemical and Food Company hasn’t had a smooth ride since its inception 22 years ago. But by paying attention to the market and being willing to adapt to changing circumstances, it’s shown it has what it takes to succeed. John Lennon isn’t someone who we immediately think of as a business guru, but there can be few better pieces of business advice than “Life is what happens to you while you’re busy making other plans”. That’s not to say that a good business plan isn’t important, but recent history is full of businesses whose best-laid plans were thrown asunder by the financial crisis, as well as start-ups that took off far beyond even their founders wildest dreams. At the end of the day a business’ success will depend as much on their ability to adapt to unforeseen circumstances, as it will on the quality of their plans. The Agro-Chemical and Food Company is a perfect example of just that. The company came into existence in 1978 as a collaboration between the Industrial and Commercial Development Corporation (or ICDC), the Agricultural Development Corporation (ADC) and the Government of Kenya. Originally the company was founded to take cane molasses and, using the latest technology, produce bakers’ yeast for food and power alcohol for use as fuel. The idea belonged to Mr M.N. Mehta, Chairman of Mehta Group International, who saw that Kenya was producing large amounts of molasses and believed the country could put it to good use. The move would have the added advantage of reducing foreign exchange used to purchase petroleum oil from abroad. Early on, it became clear everything wasn’t going to go exactly according to plan. The oil industry was reluctant to co-operate with the news scheme and resisted the idea of blending power alcohol with petrol, so that for its first three years in business the ACFC was only operating at 30% capacity. By 1988 they had managed to build sales to the point where they were operating at 75% capacity, and by the early 90s the company was already starting to see interest from export markets in Europe. Still, realising that power alcohol was not enough to support the business on its own, ACFC diversified its product range to include industrial alcohol, as well as other grades of alcohol. This included “neutral alcohol”, which was in high demand by both the beverage and pharmaceutical industries. The move proved to be a success, and since 1991 ACFC has broken a number of production and sales records. In 1996 the government’s involvement in the company was moved from the Ministry of Energy to the Ministry of Agriculture. Over the last decade the company continued to grow by responding to market needs. From the year 2000, as the demand for a higher quality of beverage alcohol grew, ACFC responded by installing a new plant capable for producing “extra neutral alcohol”. Today the company’s mandate is to produce and sell
a variety of grades of spirits and yeast using Kenya’s high quality sugar cane molasses, creating employment and economic gains for both the Kenyan government and the country’s shareholders. ACFC’s journey is far from over however. For most of its life the company has enjoyed the privilege of operating as a monopoly. In recent years this has changed with the appearance of new competitors on the market. So once again ACFC is reviewing its business and marketing strategies. Target Markets Today ACFC offers a range of products. On one side of the business, they sell spirits for beverages, pharmaceutical and industrial purposes. This includes Rectified Spirit, commonly used in the pharmaceutical and cosmetics industry. There is also Neutral Alcohol, which many local businesses in the region use to fortify their wines. Finally there is Extra Neutral Alcohol, a top of the range extra-fine alcohol used for alcoholic beverage of international standards, again, a market the company moved into to meet growing demand. The other side of the ACFC’s customer base is the market for yeast. There are two main forms of yeast that ACFC sells. Active Dry Yeast is a product they have been selling since the beginning. This product is used in both baking and brewing processes, and the company is constantly investing in new technologies and techniques to improve the quality of the yeast available. Wet yeast is a relatively new market for the ACFC, and the firm is striving to ensure that this new product is of a quality that can compete with cheaper imported yeast. Values Worth Sticking With While the companies markets and goals may have shifted over the 22 years since it was founded, throughout its life ACFC has adhered to a strong core set of values that have seen it through even the most troubled times. Behind everything the company does there is the goal of producing quality products and the utmost customer care while remaining environmentally friendly. Professionalism, integrity and equal opportunities at the centre of everything ACFC does. Of course, plenty of companies are quick to talk up their green credentials, but ACFC walks the walk as well as talking the talk. Its industrial effluent treatment process includes serious considerations of the “four Rs” of waste management: Reduce, Recover, Re-Use and Recycle. But ACFC has taken its responsibilities further, not just monitoring its environmental impact but doing everything it can to give back to the community that supports it. The firm provides a free supply of clean water to its local community
and pays the school fees for orphaned or disadvantaged children. The company has also supported HIV awareness campaigns, educational, medical and infrastructural programmes and provided help with disaster response operations. These efforts include an outsourced health facility that provides for both ACFC’s employees and their dependents. The well-equipped facility has a doctor, two clinical officers, a laboratory technologist and support staff. The reasons for this are self-evident. As the ACFC website says: “A healthy workforce means a healthy manpower to any organization; hence ACFC strives to offer its employees the medical services they need just in time.” As well as taking care of its employees physical needs, the health centre also promotes sensitisation programs to face social challenges such as the HIV/AIDS pandemic. The company’s efforts have been recognised across the industry. In 2002 and 2003 it was voted the company with the best Environmental Management Practices at the Company of the Year Awards arranged by the Kenya Institute of Management. The firm also produced the runner-up for the Professional Manage of the Year in 2002 as well. On top of this, ACFC is constantly improving its certification, being one of the few parastatals in Kenya to achieve an ISO 9001:2000 certification for quality. As for what’s next for ACFC? Who knows. One thing you can be sure of, however, is that however the market changes, ACFC will be the first to adapt to whatever circumstances are thrown their way. It’s a way of doing business that has worked well for them so far.
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Endeavour Magazine • May 2012 • 77
NIC STANISSIS: IT’S ALL ABOUT WINNING by Daemon Sands There are some people who will always leave an impression. Daemon Sands gets the opportunity to have a chat to Nic Stanissis about his successes in the MMA ring and the office. There is a dying breed of people who can combine personal philosophies and principles with business strategies to create successful businesses. To some Nic Stanissis is an iconic business leader who’s risen to prominence by inspiring greatness in those people lucky enough to work with him, to others he’s a blur of muscle and fists inspiring jaw slackening terror. Taking the same approach with his business Finstate and his MMA fighting career he is a man who has no time for limitations as his eyes are simply too intent on winning. Schooled in South Africa, the young Nic was often at odds with teachers but idolized by his fellow students, being well known not only for his rebellious nature but more importantly his natural ability with people and relationship building. Although able to make light of it
he was often in trouble and a major turning point, one that united both students and faculty members in their respect came in the form of inter-house boxing. “From the age of 15 boxing was a great release from the pressures of adolescence and a broken home,” - Nic Stanissis Finding that boxing demanded discipline and the philosophy of applying oneself to a task long enough to get results, it is a fair comment to say that Nic had found a calling in life - winning. Finishing his schooling at Kings College in New Zealand, boxing was a mainstay to his life and he began developing a strong philosophy that would guide him throughout:
“I believe hard work is a law of the universe, such as gravity. Hard work results in a harvest but in order to reap the harvest you must first sow.”Nic Stanissis Craving more ways to develop himself he found MMA at the age of 21 and after applying himself thoroughly he had his first fight at the age of 22. Certainly a memorable occasion for all involved. “My current record is 6-0, all my fights have ended in the first round.”Nic Stanissis Despite his success in the ring, Nic is particularly modest and quick to give credit to others and insists on training with coaches who can push him to the next level, preferring the sort of teachers that are specialists in a key area. “I have a coach for Boxing, Wrestling, Jiu Jitsu etc, specialists who can show me
everything instead of someone who claims knows a little of everything.“ Nic Stanissis Maybe his opponents should have had the same approach? In 2005 Nic set up Finstate on his own and now it currently comprises of 25 full time employees and he is always on the lookout for A Players, even if there’s no place for them because he knows they’ll add value as long as they’re his kind of people. The right kind - winners. “Our vision is to change the perception of the financial services industry one client at a time. We always place our client’s needs above our own, and want to extend this across all aspects of our sector,” - Nic Stanissis Today we use the word “pioneer”, future generations may use the word “iconic,” but as a family man, businessman and a world-class fighter Nic is far more interested in the success of today.
Endeavour Magazine • April 2012 • 79