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POWERGROUP

THE

www.powergrp.co.za

Like many contractors, the Power Group has built up its own development arm. Today,

Power Construction and Power Developments go hand in hand to bring affordable housing to all South Africans, as John O’Hanlon discovers

Construction consciencea

Like many contractors, the Power Group has built up its own development arm. Today,

Power Construction and Power Developments go hand in hand to bring affordable housing to all South Africans, as John O’Hanlon discovers

withConstruction conscience

T h e Po w e r G r o u p

The Power Group came to life 27 years ago when Graham Power and his wife Lauren started an independent civil contracting business with just three casual labourers and a second-hand backhoe loader. This business expanded rapidly, growing offshoots faster than a

vine plant. A specialist paving company called Blitz Asphalt was founded in 1987; and Power Properties, the division that grew into the present day Power Developments, followed in 1991.

The key Western Cape BEE contractor Hughmic Construction was launched in 1997 way ahead of BEE initiatives in the majority of the South African construction sector, followed closely by Sibakhulu Construction in the Eastern Cape. In 2004 Nikamandla Construction became the fourth empowerment initiative associated with the Group. In this unique undertaking, two previously disadvantaged individuals—both employees—obtained a joint 51 per cent shareholding in the company, while Power Construction Roads received a 49 per cent holding. The Group was rationalised and streamlined from 12 companies into two entities, Power Construction and Power Developments, in 2007.

The Power Group operates nationally from four regional offices: Cape Town (its head office), Knysna, Port Elizabeth and Centurion. Power Construction

www.komatsu.co.za

South operates in the Western, Southern and Eastern Cape. Established as a roads and services township infrastructure contractor, the company has also been involved in highway construction, major pipe lines, specialised surfacing, asphalting, road milling, friction paving, concrete work and golf course infrastructure.

Power Construction North operates in Gauteng, the fastest growing province of South Africa, and its powerhouse of manufacturing and industry. The division initially started off with smaller projects for Power Developments, but has recently managed to build up its capacity to execute major projects such as the Serengeti Golf and Wildlife Estate and the R21 as part of the Gauteng Freeway Improvement Project, to the value of R610 million.

Power Building is based in Cape Town, but operates nationally. Power Developments is the property development division of the Group, based in Cape Town, which also has a national presence through the regional offices. Power Developments started off doing small residential developments; however, over the years the South African government has been actively rolling out subsidised housing for the poor. This accelerated the company as a housing developer and to date, it has constructed over 50,000 houses. It has won awards from local and national government as well as the South African Institute of Housing. At the other end of the scale it initiates and manages multi-million rand turnkey developments, developing and building residential, industrial and commercial properties within a wide-ranging portfolio from high-density housing projects to prestigious developments and golf course developments.

The Group is now one of the most versatile in the country, capable of handling major infrastructure projects from paving and surface preparation of all descriptions to turnkey commercial property developments, though it continues to have a special interest in subsidised housing.

T h e Po w e r G r o u p

Komatsu Southern Africa and the Power Group enjoy a longstanding business relationship dating back to the Power Group’s inception in 1983 when it purchased two Komatsu excavators. Today the Power Group owns a large fleet of Komatsu equipment of all types and Komatsu SA is one of the group’s preferred suppliers. “We have an excellent relationship with the group, which is one of our largest clients in the Western Cape. Komatsu equipment accounts for about 20 per cent of the group’s total earthmoving fleet,” commented Jimmy Smith, manager of Komatsu SA’s Cape Town branch.

Komatsu Southern Africa (Pty) Ltd

Thus far the Power Group may look like just another construction enterprise that has grown in response to the massive investment funds voted by the government for infrastructure development—particularly in Gauteng (or even the billons of rand earmarked for decent quality subsidised housing). However, there is a difference that could be perceived when founder and chairman Graham Power proclaimed the core purpose of the new business as “to improve the quality of life in Africa through infrastructure development.”

In keeping with this core purpose, the company’s growth strategy is viewed in a sustainable light. “From a business growth point of view, our approach to establish ourselves in different regions in South Africa (and into Africa in the future) is based on organic growth—clearly a long term view,” explains managing director Poens Venter.

A similar ethical stance is reflected not only in the commitment to quality and best practice but also in the company’s commitment to continuous learning and development, including leadership skills and technical development for all employees, says Venter. “We are not just talking about regular business training. There is a lot of focus on leadership and emotional intelligence, conscious leadership, etc.” The Power Group also takes diversity seriously, with many female employees working as engineers, technicians, surveyors and in other operational positions. Women are also well represented on the boards of directors.

Another concept embraced by the Group is conscious leadership—a practical leadership programme designed to cultivate greater levels of conscious awareness through participation in one-to-one consulting sessions and group dialogue. “We use an external coach and mentor who assist our senior leadership in delivering this aspect of the training programme,” says Venter.

It’s hardly surprising that the Group has always tended towards organic growth rather than acquisition; and the emphasis on training and personal development is clearly in sympathy with this strategy, which will not change as the Power Group expands both within South Africa and into other African countries.

As Graham Power puts it: “I firmly believe God has a plan for Africa, and that we have a role to play in the transformation of our continent.” www.powergrp.co.za

POWERGROUP

THE

www.powergrp.co.za