Businesses that are successful in effecting major transformation changes especially with black equity partners, will secure a sustained competitive advantage under the South African Automotive Masterplan 2035.
That is the view of Electrocoat MD, Angelique Adcock, one of a number of women leading companies in the pressured automotive sector.
Adcock, whose family founded the e-coating business eleven years ago with a loan from a financier, sees transformation as key to future growth. That is why, she says, Electrocoat is engaging with potential black partners for a stake of at least 51% of the business.
"Taking on an equity partner would be a happy and healthy progression for Electrocoat. There are many black business people in the sector that would add great value to the business, she says.
"My family established Electrocoat eleven years ago by lending a significant sum and has subsequently developed the business to the success it is today and as the MD of the company, I am entrusted with its continued success.
"We are not looking for an equity partner with no operational value. The partnership that we are soliciting is one in which each partner has operational value to bring, which is what we believe will ensure the company's long term success and longevity.''
Adcock said the principle and imperative of growing black ownership in the supply chain, which is reflected in SAAM 2035, was clear. "Transformation presents opportunities for our country and individual businesses,'' she said.
Approached for comment, NAACAM executive director, Renai Moothilal, says the Electrocoat example gave credence to the potential for transformation linked activities to be mutually beneficial and growth stimulating within the lower value chain tiers. “All sector players should be finding ways of unlocking localisation opportunities deep into supply chains, and simultaneously leveraging transformation outcomes. The policies of the SA Automotive Masterplan process have created the demand conditions to support this.”
Electrocoat, based in Port Elizabeth, supplies coating to a wide spectrum of component manufacturers and assemblers in all sectors and is a supply chain partner to South African based OEMS.