Dec 09, 2011
Distribution company has opportunistic growth strategyBack
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|Steel|Graham Dunford|Security|Cable|Sub- Saharan Africa
© Reuse this
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
Giving Industry Air To those who use it, compressed air is a vital cog in their business. Whether in a factory, a hospital, a mine or any other environment, no matter how much compressed air is used, it’s always a critical commodity. “And that’s why our...
Goscor Power Products (GPP) has built an enviable reputation across a wide range of sectors, including construction, agriculture, mining and general industry where it distributes world-class products including pumps, generators, welders, firefighters, engines,...
When it comes to Mobile Elevating Work Platforms (MEWPs) there is little doubt about the professionalism and expertise of Goscor Hi-Reach MD George Landsberg and his team. “Since inception, our goal has been to be the preferred supplier of MEWPs in Southern Africa...
Updated 6 hours ago Government, in conjunction with industry clusters had to encourage preferential procurement in the mining industry, Department of Trade and Industry (DTI) capital equipment and allied services director Tapiwa Samanga has said. In a statement issued on Monday, he...
Updated 6 hours ago The South African Property Owners’ Association (Sapoa) has appealed to Rural Development and Land Affairs Minister Gugile Nkwinti to invoke the discretionary powers available to him under the Spatial Planning and Land Use Management Act of 2013 to prevent...
Updated 6 hours ago The Financial Services Board (FSB) has extended telecommunications group MTN’s broad-based black economic-empowerment trading platform MTN Zakhele’s exemption to the directive requiring over-the-counter (OTC) trading platforms to apply for a licence to operate,...
Recent Research Reports
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...
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
Next ArticleDivision achieves 50% growth in less than a decade