http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.15Change: 0.05
R/$ = 11.58Change: -0.02
Au 1195.87 $/ozChange: -1.05
Pt 1197.50 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Dec 09, 2011

Distribution company has opportunistic growth strategy

Back
Construction|SECURITY|Africa|Cable|FHS Fitter & Hose Solutions|Hudaco Industries|Industrial|Powermite|Security|Varispeed|Africa|China|India|Security|Automotive|Connectors Supplier|Hose Suppliers|Industrial Products Distributor|Manufacturing|Mining|Namely Motion Control Automation Product Supplier|Product|Products|Security|Security Distributor|Solutions|Steel|Graham Dunford|Security|Cable|Sub- Saharan Africa
Construction|SECURITY|Africa|Cable|Industrial|Security||Africa||Security|Automotive|Manufacturing|Mining|Products|Security|Solutions|Steel|Security|Cable|
construction|security|africa-company|cable|fhs-fitter-hose-solutions|hudaco-industries|industrial|powermite|security-company|varispeed|africa|china|india|security-facility|automotive|connectors-supplier|hose-suppliers|industrial-products-distributor|manufacturing|mining|namely-motion-control-automation-product-supplier|product|products|security-industry-term|security-distributor|solutions|steel|graham-dunford|security-person|cable-product|sub-saharan-africa
© Reuse this



JSE-listed industrial products distributor Hudaco Industries continues to generate cash and remains in a healthy financial position, which enables it to pursue its acquisitive growth strategy.

Hudaco Industries executive director Graham Dunford says the group is committed to making acquisitions to enable it to grow its business.

He adds, however, that the group’s acquisition strategy is opportunistic in nature, as suitable opportunities rarely present themselves.

“If we already represent a world brand, acquiring distribution rights for a competing brand is not feasible,” says Dunford.

Most major world manufacturers are invariably already represented locally and acquiring these distributors is usually only possible when the owners wish to disinvest.

“Investing in our own businesses is the least risky growth route and a high priority is placed on ensuring that every internal growth opportunity is exploited,” Dunford states.

Hudaco Industries has acquired seven companies in the past eight years, namely motion control automation product supplier Varispeed; industrial cable, plugs, sockets and connectors supplier Powermite; fitter and hose suppliers FHS Fitter & Hose Solutions; telecommunication specialist Global Communications; security distributor Pentagon; steel specialist Ambro; and Midrand Special Steels.

Meanwhile, Dunford says the Hudaco business model leans towards importing rather than manufacturing products locally.

“We cannot compete with countries such as India and China in terms of labour costs and efficiencies. Hudaco’s business model is to import and distribute quality branded products, which is its speciality, and it tends to steer away from manufacturing,” he notes.

The group carries 250 000 line items in stock, sources products from over 1 500 suppliers, supplies 20 000 customers in over 100 locations, mostly in sub- Saharan Africa, and has 17 companies under its umbrella.

The core demand for the product range is relatively stable and is influenced more by gross domestic product than by gross domestic fixed investment (GDFI).

Although some of its businesses benefit directly from GDFI spend, the impact on the total group is not significant.

“Half of Hudaco’s business is derived from the manufacturing and mining sectors, with the balance coming from the construction, automotive aftermarket and security industries,” says Dunford.

Edited by: Chanel de Bruyn
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Corporate Profiles News
Aerosud’s flagship company Aerosud Aviation has come a long way since 2000, when the company’s diversification into commercial aviation as a manufacturer and supplier of parts and accessories to Boeing and Airbus started in earnest. The company succeeded in winning...
Aerosud programme aimed at empowering lower-paid employees To quality as a broad-based black economic empowered (BBBEE) company in terms of the BBBEE Amendment Act, 2013, Aerosud is placing the focus on putting suitable mechanisms in place to enable its lower-paid...
Aerosud, South Africa’s leading aeromechanical parts manufacturer, has restructured its operations as part of a strategy aimed at ensuring continued strong growth. The restructure, put into effect in June, is directed at strategically positioning and financially...
More
 
 
Latest News
China appears to have been routinely underestimating output from its sprawling steel sector, with official figures for last year alone 40-million tonnes below a key industry estimate - an amount equivalent to Germany's entire annual production. Beijing has vowed to...
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks