http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.58Change: -0.05
R/$ = 10.55Change: -0.04
Au 1301.41 $/ozChange: -2.54
Pt 1436.00 $/ozChange: -8.50
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office 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
FHS Fitter & Hose Solutions|Hudaco Industries|Powermite|Varispeed|China|India|Connectors Supplier|Hose Suppliers|Industrial Products Distributor|Namely Motion Control Automation Product Supplier|Security Distributor|Steel|Graham Dunford|Sub- Saharan Africa
fhs-fitter-hose-solutions|hudaco-industries|powermite|varispeed|china|india|connectors-supplier|hose-suppliers|industrial-products-distributor|namely-motion-control-automation-product-supplier|security-distributor|steel|graham-dunford|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
 
 
 
 
 
 
 
 
Other Corporate Profiles News
SOURCE OF STRENGTH Gunric Valves has made rapid advances since inception, mainly on the strength of a triple eccentric metal seated butterfly valve it developed in-house
Specialist valve manufacturer Gunric Valves, which celebrates 25 years in business this year, has broken new ground in many industries and markets – both in South Africa and globally – owing to its designs. Based in Robertville, Florida, on the West Rand, the...
All credit for industrial valve manufacturer, supplier and exporter Gunric Valves’ valve designs goes to joint MD Gunter Schmikal, who is all at once the company’s chief executive, designer and research and development department.
More
 
 
Latest News
Updated 48 minutes ago South Africa's drive to create a competitive and food-secure State was boosted on Tuesday with the launch of the Centre of Excellence (CoE) in Food Security, at the University of the Western Cape, which would bring together a cohort of experts and researchers from 19...
Updated 1 hour ago The City of Cape Town has entered into eight third-party service provider agreements licensing the take up of the spare infrastructure capacity generated through the city’s broadband network. Lease-agreement negotiations were progressing with another 20 third-party...
Updated 1 hour 13 minutes ago A 344.5 t wax reactor has arrived at petrochemicals giant Sasol’s Fisher-Tropsch wax expansion project, in Sasolsburg, in the Free State, after five weeks of road travel from Richards Bay, in KwaZulu-Natal. The reactor was transported through Pongola, in...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
Updated 6 hours ago There is enough water in South Africa to supply communities and the economy, even if some activities may be constrained, such as agriculture in the Limpopo, says National Planning Commission commissioner Mike Muller. 
Muller was also the director-general from 1997...
South African antenna designer and producer Poynting and provider of professional products, system integration and implementation and commissioning services for the broadcast and telecommunications markets in South Africa, African Union Communications (Aucom),...
Industrial automation giant Festo has been displaying some of the its ongoing research projects and latest automation developments and products at the Hannover industrial fair from April 7 to 11, as part of its Integrated Automation – The Next Steps theme. The...
South African retail companies are responding to the way in which e-commerce is changing their engagement model with customers by improving customer engagement channels and order fulfilment intelligence, says industrial and retail software company JDA Europe, Middle...
In support of the South African government’s mandate to create more jobs and promote sustainable development, multilevel marketing company Amway’ business model aims to assist government in easing the startup of business and encourage an entrepreneurial mindset...
 
 
 
 
 
 
 
 
 
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