JSE-listed Jasco seeks to take advantage of the “very exciting” energy sector in South Africa, and will position itself as a tier-two player providing distribution and transmission equipment to independent power producers (IPPs), the firm said at its year-end results.
The company currently supplies cables and associated accessories to the energy sector, as well as low- and medium-voltage solutions, such as voltage stabilisers and transformers. The Jasco Energy Solutions division will build additional competences in the sector through small ‘bolt-on’ acquisitions.
New Jasco CEO Pete da Silva said that the company was excited about this division, and was already engaging municipalities, IPPs and tier-one suppliers such as Siemens, General Electric and Alstom.
Jasco Energy Solutions will not be an operator or generator in the energy sector, but will increase its deliverables to the industry.
Da Silva said that the deregulation of the sector in South Africa, and the introduction of IPPs meant opportunities for the company, as IPPs and suppliers required local partners for distribution networks and balance of plant projects.
He was encouraged by the recent renew- able-energy bidders conference, which attracted some 700 participants.
Jasco’s Energy Solutions division currently generates about R150-million a year in revenue, and the company has set a target of generating R350-million a year in the next two to three years.
Jasco has implemented its ‘restructured for growth’ strategy, which Da Silva said was a flatter organisational structure, seeking business in more diversified markets and geographies.
He emphasised the importance of a unified Jasco brand, which encouraged cross selling between divisions.
Rather than dealing with numerous smaller companies under the larger Jasco umbrella, Jasco has restructured into three verticals for correct business segmentation.
These are the Jasco Energy Solutions division, the Jasco Industry Solutions division and the Jasco Information Communications and Technology division. The minimum revenue expected from each of the three divisions over the next two to three years is R350-million a year.
Jasco Industry Solutions incorporates the company’s security solutions, which currently generate about R150-million in revenue a year. Da Silva noted that the annuity income in this division was declining and could no longer be relied on, thus the division would have to acquire new competences.
He noted that currently the Jasco offering included surveillance systems, access control and some fire detection, but the division would focus on developing its portfolio to include building management, control systems, energy efficiency and fire solutions.