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NEWS ISSUE 6, 2013

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safalgroup.comsafintra.com

Safal News is published by Meropa Communications on behalf of the Safal Group. If you wish to reproduce any part of this publication, please email marketing@safintra.co.za.

Safal News is also available electronically at www.safalgroup.com

ContentsThe Safal Group at a glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2013: The year in review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Dr. Chandaria: A Lifetime of Achievement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Getting closer to our customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Technology and Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Human Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Manufacturing and Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Corporate Social Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

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the safal group

The largest steel roofing company inAfrica The Safal Group is founded on the productionand marketing of steel roofing in Eastern andSouthern Africa. The combined outputs of 36operations in 11 countries in Africa make it the continent’s largest steel roof sheetingproducer.

Brands that are known and trusted by millions The Safal Group owns many of Africa’s mostloved and trusted steel roofing brands. Thistranslates into value creation and market

share, which is a cornerstone of the Group’slong term strategy.

Innovation brings world classproducts to AfricaThe Safal Group has brought the world’s mostadvanced metal coating technology to Africa.

To retain its market advantage, the SafalGroup is reverse integrated, owning four steel-coating mills which are strategically situated inKenya, Tanzania, Uganda and South Africa, toprovide its roofing operations with world-classinput coil.

The Safal Group at a glance

2 Safal News 2013

introduction

2013: The year in reviewContinuing growth and rising prosperity in most countries on the African content was the catalyst for the Safal Group to grow its presence by opening new branches and service centres.

New branches and service centreshave been opened in Beira(Mozambique), Mbeya (Tanzania),Thika (Kenya), Bujumbura (Burundi)and Awasa (Ethiopia). The Groupstrives always to get closer to itscustomers, providing easily sourcedproducts and services as close to the market as possible. The newservice centres are already showingpleasing results.

Twenty-thirteen also saw theintroduction of innovative newproducts to complement its existingroofing product range. And with thegrowth in regional trade, there hasbeen further alignment of Groupbrands, ensuring that products areconsistently manufactured andmarketed across all territories.

A significant achievement was thesigning of Kenyan-born sporting iconDavid Rudisha, the 2012 Olympicrecord holder for 10,000 metres, asthe Safal Group brand ambassador.He endorses our values and goalsand reinforces our image aschampions in our own field.

In 2014, we will continue to offer ourcustomers superior products, trustedbrands, and technical supportservices that make our products thepreferred choice for both consumersand professionals.

Sarit Shah Executive Director, Safal Group.

A significant achievement was thesigning of Kenyan-born sporting iconDavid Rudisha as the Safal Group brandambassador.

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Sarit Shah, Executive Director, Safal Group.

4 Safal News 2013

Dr. Chandaria: a lifetime of achievement

A lifetime achievement awardfor Dr. Manu Chandaria

“If you can’t give what you have – experience, knowledge,philosophy – I don’t know what else you can give” Dr. Manu Chandaria

Dr. Manu Chandaria, OBE, foundingChairman and Chairman Emeritus ofthe Safal Group, was recentlyhonoured with a lifetime achievementaward from the African LeadershipNetwork (ALN).

This accolade follows a string of other awards for Kenyan-based Dr. Chandaria, who is acknowledgedas one of the most accomplishedindustrialists and entrepreneurs in East Africa.

In 2003, he was awarded the Order of the British Empire (OBE) by QueenElizabeth II, and in December of thesame year he was awarded the Elder of the Burning Spear by formerKenyan President, Mwai Kibaki –one of the highest civilian honours in Kenya.

Outstanding AfricanentrepreneursThe ‘Africa Awards forEntrepreneurship’ (AAE) are awardedby ALN, a pan-African network ofentrepreneurs. Its awards arerecognised as the most distinguishedAfrica-focused programme of its kind,endowing over US$200,000 in prizemoney to outstanding Africanentrepreneurs who demonstratebusiness excellence and social impact.

The 2013 ‘Africa Awards forEntrepreneurship’ Gala Awardsceremony was held as part of the ALNannual gathering, which took place atthe Le St. Geran Resort in Mauritius.

New generation leadersThree hundred of Africa’s mostdynamic ‘new generation’ leadersgathered for stimulating discussionsabout innovative ways to createprosperity for Africa. Last year’slifetime achievement award went toSouth African-based Dr. RichardMaponya, an iconic Africanentrepreneur.

Dr. Chandaria, who was one of 12 ofAfrica’s top entrepreneurs honoured,was interviewed on stage by well-known BBC anchor Komla Dumor,who presents ‘Focus on Africa’. Dr. Chandaria, who said he was“honoured and humbled” by theaward, built his industrial empire fromhis parents’ modest general tradingbusiness in Kenya in the 1950s.

Speaking about the event he said: “It was very well organised withrepresentatives from as many as 34countries. These were young peoplefrom all spheres of business who wantto re-write the history of Africa. It wasa bundle of energy, with excellentnetworking opportunities, and

Dr. Chandaria is the founder of theChandaria Foundation, a charitablegroup which does extensive work inboth education and health.

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wonderful addresses anddiscussions.”

A host of dignitaries and celebritiesattended the award ceremonyincluding Xavier-Luc Duval, FirstVice-Prime Minister of Mauritiusand Hanna Tetteh, Ghana’sMinister of Foreign Affairs andRegional Integration.

Entertainers included Don Jazzy (who was the key performer),founder and CEO of MavinRecords who was named thesecond most bankable artist inAfrica by Forbes magazine.

Well-known philanthropistApart from his business ventures, Dr. Chandaria is well known for hisphilanthropic work. He is thebenefactor of numerous schoolsand clinics in Kenya and is thefounder of the ChandariaFoundation, a charitable groupwhich does extensive work in botheducation and health.

More about AfricanLeadership Network (ALN)African Leadership Network (ALN) is an elite group of dynamic and influentialleaders in Africa whose work ultimatelyaffects and changes ordinary Africanlives.

The organisation’s aim is to createprosperity in Africa by celebrating andencouraging entrepreneurship andstrengthening relationships betweenleaders in Africa to boost intra-Africantrade, investment, partnerships andcollaboration.

ALN measures its success by how manyjobs its members create, how muchinvestment is attracted into and acrossAfrica as a result of its members’collaboration, how much innovation andcreativity is unleashed as a result of itsmembers’ partnerships, and how manyordinary African lives are changed as aresult of members working together.

The ALN was co-founded in 2010 byAcha Leke (Director and Head ofMcKinsey & Company in Nigeria) andFred Swaniker (founder and CEO of theAfrican Leadership Academy in SouthAfrica).

Pictured receiving his award from the African LeadershipNetwork, Dr. Chandaria with Mrs. Chandaria (far right).

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A world champion flies the flag for the Safal GroupPairing with champions: Kenyan Olympic 800mgold medallist David Rudisha is now the flag bearerfor the Safal brand and stars in a media campaignthat publicises and creates awareness of thecompany and its products.

The campaign message is that the‘champion behind the champion’ isthe high-quality coated steel used byMabati Rolling Mills to make their roofsheeting.

Brand Manager Cedric Alaro says thecampaign reinforces the position ofMabati Rolling Mills as part of a globalgroup, which is a leader in theindustry, driven by quality and, ofcourse, always giving something backto those who contribute to itssuccess.

David Rudisha – the champion behindthe champion.Image: David Rudisha, Facebook.

marketing

8 Safal News 2013

getting closer to our customers

2013 Safal Group Marketing Conferencehosted by Uganda Baati

The conference, held from 27 to 28April, was hosted by Uganda Baatiand was well attended byrepresentatives from 10 of the 11countries in which the Groupoperates.

Business Head Suraj Malhotra and histeam did a magnificent job of ensuringthat all logistical details were smoothlyand efficiently attended to.

Focus on new productdevelopmentSarit Shah, Safal Group ExecutiveDirector, chaired the businesssessions which covered a wide rangeof marketing matters, including thepreparation of marketing plans and areview of group products with a focuson new product development.

The Group Marketing Portal waslaunched and service centre casestudies were presented by fourcountries. Further, such centres willbe rolled out to the remaining Groupcountries in the near future.

Delegates described the conference asvery informative and highly productive.

The 2013 Safal Groupmarketing conferenceprovided delegates with anopportunity to exchangecreative ideas and marketinginformation.

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Safal Group Management Conference ends 2013 on a high noteSome of Africa’s most experienced minds in the steel industry gathered for the annual SafalGroup Management Conference in Dar es Salaam, Tanzania, from 9th to 11th October 2013.

Executives and Directors from theGroup exchanged operational bestpractices, reviewed the past year andfocussed on product and businessinnovation that will keep the Safal Groupthe leader in its field.

Executives and directors from all thecompanies in the Safal Group met todiscuss strategy, review the past yearand to exchange operational bestpractices.

A key focus area of 2013 was ways inwhich the Group can deepen itsinteraction with its customers andend-users.

The conference heard of progressmade on Group ERP systems, a keybusiness enabler. Delegates were alsotold of the positive moves in the areaof human resources namely learning,training and development as well asmanagement developmentprogrammes.

African economies areattracting huge inwardinvestment• Telecom companies in Africa

have added 320-millionsubscribers since 2000. This ismore than the entire U.S.population.

• Strong economic growth andsubstantial Foreign DirectInvestment (FDI) into Africa overthe past two decades hasresulted in the emergence of asizeable middle-class which isdriving growth in consumptionexpenditure.

• The middle-class is widelyacknowledged to be crucial tothe continent's economic andpolitical development. Recentestimates size this group atapproximately 400 to 500million people, equal to that ofIndia or China.

10 Safal News 2013

getting closer to our customers

Ethiopian Steel gets closer to its customersInterview with George Arodi, Business Head of Ethiopian Steel PLC (ESPLC).

Q: How did you conceive of theservice centre concept?A: In a big and geographicallyexpansive market with a poorlystructured distribution network, wehad to devise ways of having apresence in areas beyond ourimmediate market of Addis Ababa. InEthiopia, the service centre concept isa panacea for these distributionchallenges, giving us wider marketpenetration.

Q: You have opened two servicecentres within two years. How haveyou managed to achieve so muchin such a short space of time? A: Once we make a decision, we acton it. And we start our service centreswith lean investments – we startedGondar Service Centre withoutinvesting in new equipment.

Q: ESPLC showrooms are doingwell. What are the reasons behindthe success?A: Success hinges on the level ofcustomer service, and lead times oforders are also important. We ensurethat our showroom staff has goodproduct knowledge. We have alsoadded other services such asproviding roof plans using AutoCADfor accuracy.

Q: What do you consider to be your major achievement at ESPLC during your two years in charge?A: The volume of value-addedbusiness has grown tremendously in the last two years. And thecompany has been on track withexpansion programmes – thecommissioning of Gondar ServiceCentre was done in record time. Themonthly average sales registered fromthe showrooms has hit US$330,000,which is very encouraging. We havealso overcome logistics challenges inthe economy.

Q: How do you see the Ethiopianeconomy in the coming few years?A: The most recent global competitive index shows that Ethiopia has lost ground. The keychallenge is the lack of foreigncurrency. However, the governmenthas plans to address these challenges with a focus oninfrastructure and foreign currency.The construction of the GrandRenaissance Dam is expected toalleviate the current power shortageand ultimately boost exports. Weexpect great transformation in theeconomy within the next three years.

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Q: How will the current foreigncurrency shortages affect servicecentres?

A: The thin-gauge business willcontinue to be compromised basedon the foreign currency situation, butservice centres focus on valuedadded lines, not on thin-gauge lines.So they will be volume drivers, andwith continued focus on value-addedproducts, we will not run short of rawmaterial for our service centres.

Q: What added-value lines willESPLC unveil?

A: From next year, our focus will beon multiple product introductions,including Ultra-Span steel rooftrusses, and Lifestile stone-coatedtiles. These lines do not require heavy capital investment or foreigncurrency outlay. We will be able toserve a market niche which has notbeen explored by the competition.

Q: What is your vision for ESPLC?

A: I work towards the creation of astrong and sustainable businesswhich will be able to withstand therigours of the market, irrespective ofwho leads it. I am confident of leavingbehind a company which will put asmile on the face of all stakeholders.

“I work towards the creation of a strong and sustainable business which will be able towithstand the rigours of the market, irrespective of who leads it.”

getting closer to our customers

12 Safal News 2013

There are adverts on buses travellingall the main routes, on billboards, innewspapers and magazines, and onnational radio stations.

Additionally, technical advice onSafintra products was provided tocarpenters, who are the ‘doctors’ ofroofing. Safintra holds technicalseminars to upgrade their skills andinstallation knowledge.

To date, over 100 carpenters havebeen trained and are alreadybecoming Safintra ambassadors inconverting end-users to Safintra steelroofing products.

The rural areas of Malawi do not have access to internet, television orprint media. To reach theseconsumers, Safintra Malawiintroduced countrywide road shows.

The show uses a large truck and arenowned Malawian artist who is acrowd-puller.

Dramatic increase in brandawarenessIt is a novel way to reach 70% of theconsumer market in the rural areasand already the road shows, heldfrom June to September in 2012,have resulted in dramaticallyincreased customer brand awarenessand product knowledge – from 15 %before the shows, to 76% after them!

Safintra Malawi has also gone theextra mile to ensure that these ruralcustomers have easy access to their products in local shops bydeveloping local retailers in villagesthroughout Malawi and giving them achance to stock Safintra roofingsheets. This expansion drive hashelped customers access a goodquality, value-for-money steel roof, ina market littered with sub-standardsubstitutes.

To extend customer relationships,Safintra Malawi also participated inthe 25th COMESA Trade Fair whichtook place at the International TradeFair grounds from 24 May to 2 June.This gave the company theopportunity to showcase a variety ofroofing solutions and allied buildingproducts to the local and internationalcommunity.

Safintra Malawi reaches out to its customers with advertising and road showsWith crowd-pulling road shows and a nationwide advertisingcampaign that covers every media base, Safintra is making its presence felt in Malawi.

Brand awareness has increased by animpressive sixty per cent since the road shows began.

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Technically-superior products and anemphasis on quality, customer serviceand brand building, have establishedSafintra Rwanda as a key player in theRwandan roofing market over the lastfour years.

Safintra Rwanda is the leader in thehigh-end roofing segment with wellestablished brands such as RoyalVersatile and Versatile.

The company has recently launchedtechnically superior products whichare aimed at reducing the life-cyclecost, time and complexities for the

highly demanding constructionindustry and provide a competitiveedge in the industry. The newproducts launched are Ultraspan,Lifestile, Quikmover and Strakcha.

The company is committed toproviding many more new products tothe Rwanda market and is a truepartner in the country’s progress anddevelopment.

Safintra Rwanda leadsin roofing sector

Safintra Malawi hits the road.

14 Safal News 2013

getting closer to our customers

ALAF takes first prizeat the Nane NaneTrade Show in MbeyaTanzania celebrates Nane Nane‘farmer’s day’ in August each yearwith agricultural shows held aroundthe country. In the southern zone,over 400 exhibitors take part at thetrade show held in Mbeya. In 2013,ALAF participated for the first timeand won an award for the ‘BestStand’ in the construction category.

ALAF also participated in theContractor Registration Board (CRB)of Tanzania’s annual meetings, held inDar es Salaam, Mwanza and Arusha.ALAF took this opportunity to launchthe Ultra-Span light-gauge trusssystem. The product was very wellaccepted by the contactorcommunity, which bodes well forsales in 2014.

Ethiopian Steel shinesat the Gondar Cultureand Trade FestivalEthiopian Steel PLC shone at theGondar Culture and Trade Festivalwhich was held from the 4 to 14January 2013. This annual event,organised by the office of the Mayorof Gondar, is an important one on thelocal calendar, and is well attended bylocal business and residents.

Participation in the festival’sentertainment programme gave thecompany an excellent platform tomarket its products, and to raisecompany exposure for its GondarService Centre.

ALAF wins Best Stand Award at theNane Nane Trade Show.

Ethiopian Steel shines at the GondarCulture and Trade Festival.

Uganda Baati remindscustomers to look outfor its mark of quality Uganda Baati has launched a freshnew look using billboards and wallbranding.

The ‘Don’t Be Cheated’ campaignreminds consumers of the superiorquality of Uganda Baati’s products, incomparison to the poor qualitymaterial available on the market.

Uganda Baati also continues toeducate consumers through roadshows which are held throughout thecountry.

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Safintra Mozambiquemakes inroads intolucrative marketsector with VersatileSafintra Mozambique recentlyintroduced the Versatile profile into themarket – a first for a market in whichclay tile roofing is widely used, andconsidered to be highly prestigious.The company commenced operations

in 2008 selling Lion corrugated, SupaRoof prepainted sheets, and Durazas.

It has recently added to its offeringwith new profiles and enhancedcustomer services targeting themiddle and upper income markets.Products include ClassicorCorrugated, Tufdek IBR, Trimflute forwider coverage, and the production offlashings for all profiles, plusbullnosing and cranking capabilitiesfor all design requirements.

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Safintra South Africagoes the extra 10,000milesIt began with a comment: “We areinstalling a solar array on the WildCoast … you might be able to help”.There is nothing we like more than alittle challenge, such as an installationon a remote coastal location, with thechallenge of a brand new product totry out, all within two weeks – andwith no ‘plan B’!

The challenge was to roll Saflok 700in aluminium material, transport it tothe Wild Coast, install it in two days,and then over-fit the S-5 roof clampsonto which the solar panels would besecured. S-5 clamps are exclusivelydistributed in Africa by the SafalGroup, and South Africa is the firstcompany in the Group to havereceived them.

Final loading testsAs the S-5 clamps were put throughfinal loading tests in Denver,Colorado, installation videos wereproduced in the USA and sent to theinstallation team on the Wild Coast bysatellite cellphone. Finally, the clampswere produced, and after 20 hours oftravelling with still-warm clamps in hisluggage, Dustin Haddock (thetechnical person from S-5 in USA)took the late night flight to Durban.

An early start from Virginia airstrip in a smallplane, on site by 10am, finished by 3pm,and back on the plane to Durban thatevening with a thrilled client. That’s goingthe extra mile – and then some!

The challenge was to roll Saflok 700 inAluminium material, transport it to the WildCoast, install it in two days, and then over-fitthe S-5 roof clamps onto which the solarpanels would be secured.

getting to closer to our customers

Steel roofing issustainableThe built environment isresponsible for 40% of the world’sgreenhouse gas emissions, anduses one-third of the world’sresources. With these alarmingstatistics, sustainability inbuildings is no longer an option –it is a necessity. And a well-designed roofing system is acritical part of the total building’sdurability and service life.

Steel roofing materials fit the billbecause they are recyclable,thermally efficient/heat reflective,and are able to accommodateabove-roof attachments such assolar panels, withoutcompromising the performance ofthe roof covering.

An aluminium-zinc coating onsteel is proven to provide optimalservice life for the roof – four timesthat of a zinc galvanised productof the same coated thickness.

Metal roofing can reflect up to70% of the sun’s rays, resulting inless heat transfer to the interior ofthe building.

Modern coating technologiesenhance steel’s low emissivity,allowing buildings to cool downsignificantly at night and toexperience less temperaturedifferential during the day.

A white, or very light coloured roofsurface, further maximises itsreflectance, minimising absorptionof inbound solar energy, resultingin a cooler roof in summer, andreducing urban heat islands incities.

18 Safal News 2013

Safintra South Africaleads the charge forsustainablearchitectureThe role of metal roof sheeting hasmade a major comeback insustainable and green architecture.

As part of their ‘Great South AfricanArchitecture’ advertising campaign,Safintra South Africa featured aremarkable home in Irene – designedby top architects – which sets a newstandard for sustainable living.

Safintra was able to use this project toshowcase the benefits of aluminium-

zinc coated steel for architecture,which leads the charge in creating anenvironmentally forward-looking builtenvironment. The house, with itsfarm-style vernacular, used ClassicorrCorrugated sheeting not only on theroof and side cladding, but also forwater tanks to collect rainwater, whichis used for the garden, toilets and tofill the swimming pool.

The SA Department of Public Worksnow requires architects who designnew public buildings to conform tothe guidelines of the Green BuildingCouncil. For example, ablutionfacilities must use wastewater,generally augmented by rainwater.

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Safintra South Africa hosted severalevents for architects and built-environment professionals during theyear. Two events, with the theme‘Sustainability in Architecture’, wereco-hosted with Walls and Roofsmagazine in April and September2013. More than 100 architectsattended each event.

A major growth opportunityVarious branches in South Africa alsohosted customers at a breakfast talkon Over-Roofing and Retrofitting, asegment that presents a major growthopportunity in South Africa.

There was an excellent response fromcustomers and professionals alikeand technical reference material washanded to all delegates.

Safintra Zambia takes top award for Best Manufacturer at Construction Expo

Safintra South Africa talks to architects and built-environment professionals

Safintra Zambia won first prize for thebest manufacturer/exhibitor at theConstruction Expo, held by theNational Council for Construction ofZambia (NCC), from 17 to 19 April.This was the first expo held for theindustry. Awards were given torecognise those who havecontributed to the industry and toinfrastructural development in Zambia.

The company also had an opportunityto showcase its new products to themarket during the country’s premieragricultural show, the ZambiaAgricultural and Commercial Show,held in Lusaka for five days. Therewere over 1,000 local andinternational exhibitors.

There was an excellentresponse from bothcustomers andprofessionals at the‘Sustainability inArchitecture’ eventswhich were co-hostedby Walls and Roofsmagazine.

technology and innovation

Safal MiTek hastrained more than500 artisans,contractors,fabricators andinstallers in the useof Ultraspan.

20 Safal News 2013

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Safal MiTek rolls out Ultraspanto five new markets

Ultraspan is a light gauge steel trusssystem, supported by patentedsoftware known as MiTek 20/20,which minimises design time andmaximises productivity.

Mr. Mukesh Patil, Marketing Managersaid: “We have already supplied morethan 750,000 m2 of roofs, anddemand is spreading like wild-fire. In2013, we expanded our footprint intoZambia, Tanzania, Uganda, Rwandaand Congo-Zaire. The horizon isendless!”

The company has supplied metal roof trusses to mass housing projects,hotels, individual houses, churches,schools, hostels, resorts, shoppingmalls, manufacturing sheds,universities, petrol stations,warehouses, hospitals and dininghalls.

Aside from manufacturing, thecompany has also focused on

upgrading skills to keep pace with thisnew technology – not only within thecompany, but for those who use theproduct. Safal MiTek has trained morethan 500 artisans, contractors,fabricators and installers in the EastAfrican region in the use of theproduct.

Safal MiTek is a joint venture betweenMiTek Industries South Africa andMabati Rolling Mills, Kenya. In the fouryears of its existence the company,which is based at Athi River, nearNairobi in Kenya, has grown in leapsand bounds.

Safal MiTek has launchedits technologicallyinnovative Ultraspanproduct to five new EastAfrican markets in the lastyear. Initially introduced inKenya, the product isbeing rolled out forresidential, commercialand industrial use.

In the four years of its existence Safal MiTek has grown in leaps andbounds, and has supplied 750,000m2

of roof material.

technology and innovation

Insteel launchesStrakcha scaffoldingsystems to greatacclaimInsteel of Kenya, a primarymanufacturer of steel pipes andtubes, strives to providetechnologically-superior products tokeep pace with the needs of thedemanding construction industry.Recently it launched its StrakchaScaffolding Range which provides atop quality local alternative to fullyimported systems. The Strakcharange – including its FrameScaffolding, Cuplock and Ringlocksystems – was launched mid-yearand is finding pleasing marketacceptance.

‘Quickmovers’ finding ready acceptance for multiple usesThe Safal Group has launched ‘Quikmovers’, multipurpose mobile prefabricatedunits ideal for use as site offices, shops, mobile clinics, classrooms, and more.

The knock-down unit is easy to transport, simple to erect or to dismantle and to move. The steel structure consists of expanded polystyrene (EPS)sandwich panels for wall and roof, which are well insulated to provide interiorcomfort. A frame of sturdy steel provides a robust and secure space.

The unit can be assembled within three days; the roof and wall panels are alreadyducted and fitted with complete electrification and floor panels, so no foundationis required.

22 Safal News 2013

The Strakcha Scaffolding Range, which waslaunched mid-year, provides a top qualitylocal alternative to fully imported systems.

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Vikram Saxena has been appointedas Group ICT Head. He is responsiblefor ensuring that IT systems are beingoptimised to create both a strategicand competitive advantage, and toensure synergy across the Group.

ERP implementationThe end result of the Group’stechnology streamlining process willbe to ensure that all processfunctionalities are covered byelectronic systems.

Barcoding and weighbridgeintegration, planning and demandforecast models, MRP/shop floorscheduling and process costing, willbring significant benefits to theGroup’s processes at every stage ofprocurement, manufacture logisticsand sales.

Navision will be implemented as analternate ERP business system toSAP.

“We intend to create a platform forcollaboration among Safal G roupemployees by implementing anintranet and video conferencingsystem across major locations,” said Saxena.

Safal will be embarking on a group-widecampaign to boost IT and ICT capabilities

to keep pace with aggressive growth plans and business development.

Information and communicationtechnology – essential enablers of business

human capital

24 Safal News 2013

Building a competitive edgethrough Human Capital

Companies are not made up ofproducts, they are made up of peoplewith the necessary skills, experienceand integrity to take the correctoperational and strategic decisionsthat will turn a good business into agreat business. Continuity is key tosustained success, and the longservice awardees have each made asignificant contribution to thebusiness, for which we are grateful.

The Safal Group human resourcesfunction serves to provide linemanagement with the requisiteinformation and expertise to effectivelymanage the human capital (HR) of theGroup, and to provide the HRbusiness partnering expertise viafunctional support and ‘Centres ofExpertise’.

At operational level, the key HRrequirement is to effectively recruit,retain and develop the intellectualcapital necessary to support anddeliver on the overall businessstrategy, and to allow the SAFALGroup to continue to build itscompetitive human capital advantage.

On the organisational and humancapital front, the focus is on drivingperformance, recognising andrewarding talent, and providing

continuous learning and developmentwhich will be vital for continued andsustained success.

We are proud of each and every oneof the Safal family, and encouragethem to go even further to Make aWorld of Difference as they walk withus through the years and decadesahead.

Dr. Chris WilsonSafal Group Human Resources Manager

As we do business in increasingly diverse and dynamicmarkets in eastern and southern Africa, the single greatest

competitive advantage between one organisation and the next is its Human Capital.

Continuity of skills is the key to sustainedsuccess and the long service awardeeshave made a significant contribution to our business.

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Mosale Jayakrishna Raghuram (Raghu)was appointed as Safal Steel BusinessHead on 1 July 2013, and was alsoinvited to join the Safal Steel Board. He isa qualified mechanical engineer with 28years’ experience in similar manufacturingoperations, and was previously ExecutiveDirector of Metalexag FZE in Dubai.

Andrew Heycott was appointed asBusiness Head of Mabati Rolling MillsCoils Division on 1st July 2013. Andrewalso assumed supervisory responsibilityfor ALAF Coil business in Tanzania, butwill be based at Mariakani, Kenya. Andrewbrings with him a wealth of experienceand knowledge of the steel industry. Heholds a BSc Engineering (Honours)degree and has over 20 years operationaland steel business experience, havingpreviously worked at Tata Steel in Asiaand Bluescope Steel in Indonesia.

Bhavesh Chandaria is responsible for theentire Learning, Training and Developmentportfolio of the Safal Group. He is basedat ALAF, Dar es Salaam and reports to Dr. Chris Wilson. Bhavesh holds a Masters of Management Studies, aDiploma in Business Management and aGlobal Professional in HR certification,and has vast experience in humanresources at a very senior level. Hismandate is to build a learningorganisation, and to act as a centre ofexcellence which will produce aprofessional and competent workforce todeliver on the objectives of the SafalGroup.

Saurabh Wathare has been promoted toBusiness Head, Gainvest SARL, Angola,based in Luanda, effective October 2013.Previously in Maputo, Mozambique forthree years, Saurabh looks forward to thechallenges of a new market.

Mr. Venkateshwer Erra Rao wasappointed as Business Head,Mozambique effective from October 2013.Known as E. V. Rao, he has held theposition of General Manager, Marketingand Sales at Mabati Rolling Mills, Kenya,for almost five years.

Executive appointments Executive transfers

Mosale Jayakrishna Raghuram.

Andrew Heycott.

Bhavesh Chandaria.

Venkateshwer Erra Rao.

human capital

26 Safal News 2013

37 years:Kaushik Shah is a CharteredAccountant with 37 years service withComcraft and the Safal Group. Currently,he is a Safal Group Director for East Africa.

Mr. Shah is also a director of several othercompanies including Standard CharteredBank and the Kenya Association ofManufacturers. In 2004, he received aPresidential Award, ‘Moran of the BurningSpear’, from His Excellency, the Presidentof Kenya.

From 1996–2011 (15 years), he was theCEO of Mabati Rolling Mills, while at thesame time having Safal Groupresponsibilities: from 1996–2004 he wasthe Safal Group General Manager andfrom 2005–2011 he was the RegionalCEO, Safal Group, Horn of Africa.

During his time at the helm of MabatiRolling Mills, Mr. Kaushik Shah hasreceived numerous awards from the KenyaInstitute of Management:• Individual awards include being named

CEO of the Year in 2003 and 2011.• Company recognition includes receiving

the Company of the Year Award no lessthan four times on behalf of MabatiRolling Mills (in 2003, 2007, 2009 and2011).

Some key contributions in his career withthe Safal Group and Mabati Rolling Millsinclude:• Being responsible for the consolidation

of activities of Mabati Rolling Mills,Galsheet Kenya and Steel Africa.

• Introducing of good governancepractices in several areas.

• The implementation of Kaizen principlesof continuous improvement.

• Setting-up the Mabati Technical TrainingInstitute and supervising the setting ofthe new Mabati Medical Centre.

35 years: Stephen Nahashon joined the Groupin December 1977 as a dispatch driver.After a year, he was promoted to driver inthe management department. In 1985, hewas transferred to Galsheet Kenya as thedriver for Managing Director, Mr. Hirji Shah.He still works for the group company,Mabati Rolling Mills.

John Kilonzo joined Mabati (nowGalsheet Kenya) in 1978 as a casualworker in the tools store. He learnt to driveon his own initiative and in 1989 he wasemployed as a driver to carry out dailydeliveries and other company errands. Heis now the driver for the CEO of BahariForwarders.

34 years: Prakash Chauhan joined Insteel as atrainee engineer when the company wasincorporated in 1979. He rose through theranks to Production Engineer and finally toChief Engineer from 1979 to 1999.

In 2000 he joined the Insteel MarketingDepartment as Marketing Manager, aposition he held for six years. In 2006, hewas transferred to Mabati Rolling Mills,Athi River, as Senior BusinessDevelopment Officer and then promotedto Operations Manager.

During his tenure at Mabati Rolling MillsAthi River, he launched two new productsin the roofing range namely, Lifestylestone-coated tiles and Polycarbonatetranslucent sheeting. He was alsoinstrumental in the deployment of SAP forthe Sales and Marketing Department.

In July, 2011 he was transferred back toInsteel as the Operations Manager, theposition he holds today.

Long Service Awards

Kaushik Shah.

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26 years:Julius Ngao joined the Group inNovember 1987 as a driver for Mr. S.J.Shah, a position that he still has today.

25 years:Livingstone Kibata joined GalsheetKenya in July 1988 as a driver in the salesand marketing department. In 1993 hewas promoted to driver for the GeneralManager. In 2000 he was transferred toInsteel as driver for the CEO until 2012,when he was once again transferred to theregional office of Safal as the driver for theGroup Manager (Business Development).

15 years:Arup Ghoshal joined the Safal Group inJuly 1994 as Project Manager in what wasthen known as Galsheet Kenya.

His first project was the planning of a newContinuous Galvanizing and Pickling Linefor the Mabati-Galsheet-Steel AfricaGroup, as well as the upgrading of theGalvanizing Line at Galsheet.

This was followed by the addition of asecond bay in the Colour Coating Line anda cut-to-length line in 1995-96. The nextmajor project was the ContinuousGalvanising Line at Uganda Baati inKampala in 1996-97.

Once the major Metal Coating Line (MCL)for Mabati was approved in 1998, Mr. Ghoshal ordered machinery fromKawasaki of Japan and finalised theAluminium-Zinc (AZ) technology transferfrom BIEC.

The Metal Coating Line was commissionedin 2000 and the AZ in 2001. Mr. Ghoshalled the operations team for one yearbefore handing over the MCL in 2002.

In 2002–2003 he helped MidlandGalvanizing, the Group company inNigeria, to plan, set up and commissiontheir Metal Coating Line in Abeokuta. Hereturned to Kenya in 2004 to start planningfor the Pickling Line at Mabati andcompleted this project in 2005.

In 2005–2006 he took charge of MabatiRolling Mills as acting Chief OperatingOfficer before handing over to the newincumbent, Mr. Mahesh Chavda.

Planning for the Group's major expansionin Kenya, Nigeria, Tanzania and SouthAfrica, started in the same year withfeasibility studies, due diligence, projectplanning and tendering.

Mr. Ghoshal led the project teams on thetechnical side, during which time hehelped complete the projects andcommissioned the 6-Hi Mill in Kenya, theMCL in Tanzania in 2009 and thegreenfield Pickling-CRM-MCL-CCL inSouth Africa in 2010.

10 years:Kishore Sewdayal joined the Group inJuly 2003 as a Financial Manager atSafintra in Durban. He was transferred toSafal Steel in 2011 as the FinancialAccountant.

We are proud of each and everyone of the Safal family, andencourage them to go evenfurther to Make a World ofDifference as they walk with usthrough the years and decadesahead.

Stephen Njuguna Nahashon.

Julius Kitenge Ngao.

manufacturing and operations

28 Safal News 2013

Safintra South Africa is the soleSouthern African licensee of thepatented Metsec light-weight sleevedpurlin system.

Purlin systems enjoy soaringsales for Safintra’s Metsec

The warehouse measures 35,500m2

and will use approximately 129 tonsof Metsec steel supplied by SafintraSouth Africa. But this is only one ofmany such projects where Metsec isspecified by brand name – creatingdemand that keeps the roll formers atfull tilt, day in and day out.

Metsec is a pre-engineered buildingsolution of purlins, girts andaccessories made from high tensile450mpa steel.

Strength is a major benefitA major benefit of the Metsec purlinsystem is its strength, which will notbow over an unbroken span of 12mor more.

Because it is light weight, it also costs20–25% less than conventionalcommercial quality steel, whichreduces the overall cost of the roofstructure and also reducestransportation costs – creating analmost unassailable competitiveadvantage.

Safintra South Africa is the soleSouthern African licensee of thepatented Metsec system, sold withworld-leading design software whichis offered free of charge to structuraldesigners.

Metsec purlins arecurrently being used inthe construction of thenew MassbuildWarehouse in Gauteng,South Africa.

Uganda Baati on awinning streak!Members of the public votedthem the People’s Choice Awardfor the most preferred brand(metallic category) in the country,and Uganda’s Private SectorFoundation voted them one ofthe top 50 Brands in Uganda.Well done, Uganda Baati – thereis no higher praise!

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ALAF wins President’sManufacturer’s AwardALAF won the President’sManufacturer of the Year award 2012in the large Industry Metal and Non-Metal products category. The award isadministrated by the Confederation ofTanzania Industries.

Superior qualityThe company has won this awardsince its inception seven years ago.This is testimony to the superiorquality of both its products andservices.

Mr. Pankaj Kumar, CEO of ALAF,received the prestigious award fromHis Excellency the Prime Minister ofthe United Republic of Tanzania,Mizengo Pinda, during a ceremonyheld in Dar es Salaam.

ALAF embraces goodhealth and safety in theworkplace ALAF won first place in agovernment-led competition torecognise good health and safetypractices in the workplace.

Creating awarenessThe trophies were given by Tanzania’sOccupational and Health Authority(OSHA) as part of a wider campaignto create awareness around thehealth and well-being of workers. Thisis the second year running that thecompany has scooped this prize.

Mr. Pankaj Kumar, (CEO) of ALAF, receivedthe prestigious award from His Excellencythe Prime Minister of the United Republic ofTanzania, Mizengo Pinda.

manufacturing and operations

Safal Steel has become the leader inthe coated steel market since the firstZincal and Colorplus coils were rolledat Safal Steel in October 2010.

Steady growthOur business contributes significantlyto the local economy, moving inexcess of 10,000 tons of steelmonthly via imports and exportsthrough Durban harbour.

Our steady growth year-on-year isattributed to the dedication of ourstaff with a recent production highlighttotalling 13,198 metric tons producedoff our metal coating line in July 2013.

Safal Steel sets the gold standard in coil coating

Safintra Malawibuilds its reputation as the country’s premier supplierSafintra Malawi has strengthened theirbrand image through a series ofmeetings with major players in thebuilding industry.

The company holds seminars withcontractors, architects, engineers,quantity surveyors and differentspecifiers. They have also visitedgovernment organisations such as theMalawi Revenue Authority (MRA) andthe Malawi Housing Corporation(MHC). These interactions havereinforced Safintra’s position as thepremier roofing brand.

30 Safal News 2013

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Mabati Rolling Mills sponsorssuccessful medical campMabati Rolling Millssponsored a verysuccessful medical campin Mariakani on 1 September 2013,organised by the LionsClub of Mombasa Pwani.

• Seven hundred and fifteen general patients were seen and giventreatment. The five most common ailments were upper respiratory tractinfections, anaemia, skin infections, malaria and hypertension. The rest ofthe patients were treated for other ailments like worm infestations, pepticulcers and malnutrition in children.

• One hundred and thirty ENT patients were screened and treated. • Sixty-nine patients were screened for diabetes and blood sugar.• Twenty ultrasound scans were done on pregnant women and patientswith abdominal complaints.

It was the busiest and mostsuccessful clinic so far, with queuesstarting well before the 8am openingtime. Apart from general medical care,patients had access to a variety ofspecialist help for eyes, teeth, ear,nose and throat (ENT), as well asultrasound facilities. They were alsoscreened for blood sugar anddiabetes and all patients were givenfree medication.

Mariakani and its surrounds haveimpoverished communities who donot have easy access to food, shelterand clothing. Healthcare facilities arealso limited. Most of the populationhave to travel far to get access tobasic healthcare facilities. The hugeneed has led to this camp becomingan annual event in the calendar of thisclub.

corporate social responsibility

Mabati Rolling Mills never forgets that success is shared

The UN Global Compact is a UnitedNations initiative to encouragebusinesses worldwide to adoptsustainable and socially responsiblepolicies, and to report on theirimplementation. The principles arepegged on issues of human rights,labour, environment and anti-corruption.

Their CSR activities this year includeda charity walk, which raisedKshs104,000 in aid of the StareheGirls’ Centre, and planting of trees at

the Peter Kariuki Primary School inKiambu County and along the NairobiNational Park fence. Pupils were alsogiven lap desks.

MRM donated money to the KenyaWildlife Services (KWS) and KenyaPower and Lighting Company (KPLC)and participated in KWS’s teambuilding activities throughwheelbarrow competitions.

corporate social responsibility

32 Safal News 2013

Mabati Rolling Mills joined other Kenyan private sectorcompanies in adopting the 10 principles of theUN Global Compact.

The Chandaria Business Foundation drivesSocio-Economic Transformation

The CBF was founded by MRMChairman Dr. Manu Chandaria, a topindustrialist and noted philanthropist,who is also Founding Chairman andChairman Emeritus of the SafalGroup.

The establishment of the ChandariaBusiness and Innovation andIncubation Centre (BIIC) is apartnership between KenyattaUniversity and the ChandariaFoundation. It was established toencourage university lecturers,students and other Kenyans to focuson solutions for socio-economictransformation. Nine incubate projects have already been set upwith the establishment of the centre.

An elated Dr. Chandaria said thecentre would be of great benefit to the Kenyan nation. “It will be thefoundation of empowerment to theyouth and will encourage them todevelop transformative ideas leadingto wealth creation ventures.”

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Safal Steel looksafter its employees’health and well-beingIn 2013, Safal Steel focused itsCSI efforts on their employeecommunities with donations offood, clothing, stationery androofing. The company alsopromotes sport for a healthyworkforce, and provided asports sponsorship to theDurban Rugby Sub-Union(DRSU).

The Chandaria BusinessFoundation (CBF) helpedbuild a multi-million dollarInnovation and IncubationCentre at KenyattaUniversity.

Dr. and Mrs. Chandaria (far left) at the official opening of the Business Innovation andIncubation Centre in 2012.

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Safal MiTek trainsinstallers Safal MiTek of Kenya has spent more thanUS$50,000 on its Fundi DevelopmentProgramme to help those in theconstruction industry who work with itsproducts. The programme is designed tohelp avoid common mistakes made duringinstallation, providing practical skills andknowledge. But it also goes further to helpcontractors and builders with lessons andtutorials on construction safety, bookkeeping and business tax, helping them tobecome more successful businessmen and women.

Uganda Baati lives up toISO 26000 standardsUganda Baati is one of five companies inthe country chosen to adopt ISO 26000 asits social responsibility standard. This wasdone on the basis of its already successfulsocial responsibility programmes in theareas of health, education and theenvironment. Work on implementation ofthe standard has already begun in earnestand a company committee has been setup to ensure compliance and to measureimprovements in the implementation ofsocial responsibility programmes.

Safintra Malawi supportseducationSafintra Malawi continues to support thecommunity by providing roofing sheets toschools and also by helping with variouslocal community projects. The companyhands out lap desks from time to time, toMalawian school children.

corporate social responsibility

corporate social responsibility

Safintra Burundi helpshouse the homeless

In April 2013, Safintra Burundi handedover 1,300 sheets of Dumuzas to theBurundian government to be used forhousing for the poor and indigent.The sheeting was supplied by MabatiRolling Mills to celebrate the 50thanniversary of the independence ofBurundi.

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Ethiopian Steelfocuses on itscommunities closeto homeEthiopian Steel PLC gives backto the community in the areas inwhich it operates. It has adopteda spread of projects which coverthe immediate and mostpressing needs of thesecommunities, including health,education and communitypolicing. It sponsored theGondar Annual Cultural Festivaland partnered with the regionalcity administration for the WorldSafety and Health at Workcelebration.

Substantial donations of roofingsheets were made by ALAF to amaternity ward and children’scancer ward.

ALAF stands up for healthcare

ALAF made substantial donations ofroofing sheets to a maternity wardand a children’s cancer ward. Theircontribution to the Urambo Eastmaternity home in the Tabora Districtis part of a government-backedcampaign to prevent maternal deaths.

Roofing sheets were also given to thechildren’s cancer ward at theMuhimbili Hospital in Dar es Salaam.ALAF had joined forces with theRotary Club and Bank M to completethe ward.

sustainability

38 Safal News 2013

The Safal Group embracessustainabilityThe true benchmark ofsustainability is the ability to withstand time,and the many Romanbuildings with us todayare perhaps thestrongest testament of all.

Rome was a green empire centuriesahead of its time. Although small bytoday’s standards, the city of Romewas the largest urban centre of theRoman empire.

Spanning over 6.5 million squaremetres and housing more than onemillion people, many sustainablebuilding practices were initiated andstill remain with us today.

Roman’s used water for sanitationand powerWealthy Romans designed a systemof rainwater harvesting. Some of thewater was distributed to a cisternafter first being filtered with gravel andsand.

Etruscan engineers also constructedthe Cloaca Maxima drainage systemto constantly drain away sewage andstorm water. This system was partiallyunderground and was kept flowing bythe continuous stream of bath waterfrom within the city.

A watermill built in Barbegal, South ofFrance, has been described as thegreatest known concentration ofmechanical power in the ancientworld.

They also cleverly used naturallight Natural light was used to greatadvantage, and Roman architectMarcus Vituvius advocated buildingso as to maximise warmth or shade,depending on the climate.

“Winter dining rooms and bathroomsshould have a south-western

exposure, for the reason that theyneed the evening light. Bedrooms andlibraries ought to have an easternexposure, because their purposesrequire the morning light, and alsobecause books in such libraries willnot decay.”

Roman engineers inventedgeysers, underfloor heating andair-conditioning!For hot water, a furnace was builtbeneath raised flooring (propped upon pillars). The furnace also createdheat underneath the floor whichspread throughout the room,supplemented by warm water pipes.

For summer cooling, rain water wascaught in a cistern and led intoshallow pools near doors. As itevaporated, the cool air would flowinto the central courtyard (atrium) ofthe house, displacing the hot airwhich rose and dissipated. Today, thisprocess is commonly referred to as‘passive cooling’ and is widely used inmany corporate buildings.

Of course, the true benchmark ofsustainability is the ability to withstandtime, and the many Roman buildingswith us today are perhaps thestrongest testament of all.

Many sustainable building practiceswere initiated during the era of theRoman empire.

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A caldarium provided underfloor heating.

Remains of an ancient Roman cistern.

Remains of a Roman aqueduct.Aqueducts channeled water from a watersource to a destination (like a pipe-line).

The City of Arts and Sciences (Ciudad delas Artes y las Ciencias) is a major public

cultural and architectural complex inValencia, Spain,

sustainability

40 Safal News 2013

Steel is uniquely placed to help communities across Africameet these challenges in a sustainable, responsible manner.

Steel building solutions can effectively respond to housingdemands with durable, low cost, pre-fabricated solutionsthat are quick to build and require little maintenance.

The Safal Group’s steel roofing is making a major comebackin green design and architecture. One of Africa’s mostpopular roofing options – steel roofs – are not only aesthetic,but help save energy, conserve water and are 100%recyclable.

Steel roofs can incorporate panels and above-roof systemsto reduce energy and water usage by harvesting solar powerand rainwater. And at the end of its life, steel can berecycled, reducing the amount of virgin material required foreach ton produced.

Aluminium-zinc coated steel, whether in metallic or pre-painted finishes, is designed to reflect heat, resulting incooler homes and ultimately giving energy savings to theconsumer. Modern coating technologies enhance steel’s lowemissivity, allowing buildings to cool down significantly atnight and to experience less temperature differential duringthe day.

For solar power harvesting, the structural nature of a steelsheet is an ideal substrate. Mechanical mounting systemsattach directly to the roof rib, with no penetration of sheet, toensure maximum water-tightness for the service life of theroof sheet.

There is a world-wide urgency to movetowards sustainability. According to theUnited Nations, there will be a need for40% more housing and basicinfrastructure services by 2030.Nowhere are the effects of populationgrowth more visible than in the cities andurban fringes of African cities and towns.

Safal Group is making ‘A world ofdifference’

Steel roofs can incorporatepanels and above-roof systemsto reduce energy and waterusage by harvesting solar powerand rainwater.

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Fascinating facts about the Worldof Difference you could make byrecycling!• To make one tonne of paper, it

takes on average 24 trees. • It takes 70% less energy to

recycle paper than it does tomake paper from scratch usingraw materials.

• Recycled paper is better for airquality, producing 73% lesspollution than paper made fromscratch from raw materials.

• You can power a computer for25 minutes with the energysaved from recycling one glassbottle.

• You can light a room with a 60-watt light for three hours, usingthe energy saved from recyclingone plastic bottle.

• You can power a television forthree hours by recycling one tincan.

• Nearly 80% of the average carcan be reused and recycled.

• Nearly 60% of all the rubbishthat ends up in householddustbins could have beenrecycled.

• Around 50% of waste in theaverage dustbin could havebeen put in a compost heapinstead.

• The average dustbin containsthe yearly energy potential topower a television set for 5,000hours.

The Safal Group’s steel roofing is making a majorcomeback in green design and architecture. One

of Africa’s most popular roofing options – steelroofs – are not only aesthetic, but help save

energy, conserve water and are 100% recyclable.