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COMPANY PROFILE<br />

Ciba Specialty Chemicals<br />

Innovative effects to improve the quality of life<br />

Ciba Specialty Chemicals is a leading company dedicated to<br />

producing high-value effects for its customers' products. Its<br />

specialty chemicals, added in small quantities, enhance the<br />

performance, look and feel of final products. Business success<br />

is driven by a long-term strategy of innovation and continuous<br />

operational improvements.<br />

An Interview with Dr. Reinhold LUTZ,<br />

Managing Director, Ciba Specialty Chemicals (Pty) Ltd, <strong>South</strong> <strong>Africa</strong><br />

Head of Plastic Additives & Coating Effects Segments<br />

14<br />

© Ciba Specialty Chemicals<br />

Inkjet Machine: <strong>Com</strong>puter-assisted textile inkjet<br />

printing for unlimited color and design.<br />

What are the core activities and<br />

capacities of Ciba Specialty<br />

Chemicals in <strong>South</strong> <strong>Africa</strong><br />

Ciba Specialty Chemicals brings new<br />

creative thought to the processes and<br />

products in more than 120 countries.<br />

<strong>South</strong> <strong>Africa</strong> is one of these countries.<br />

We do not have production facilities<br />

here and are primarily a sales/marketing<br />

and support organization, responsible<br />

for the markets in <strong>South</strong>ern <strong>Africa</strong>.<br />

Executing the functions of our local<br />

organization are highly qualified, energetic<br />

employees working together as a<br />

small but dynamic team towards<br />

common goals. By working closely<br />

with customers and listening to their<br />

needs, our sales team formulates new<br />

ideas to improve the quality of life and<br />

benefit from the created synergies.<br />

Considering innovation and R&D, Ciba<br />

Specialty Chemicals has a global R&D<br />

program and locally we have small technical<br />

laboratories to test applications<br />

according to customer specifications.<br />

We have developed partnerships with<br />

direct customers, retailers and technical<br />

institutes - both in terms of technologies<br />

and services - and we are<br />

currently intensifying our efforts<br />

within the various value-chains to<br />

identify the needs and initiate projects<br />

for new product developments.<br />

How has the strategy of the company<br />

evolved in the area and how important<br />

are the <strong>South</strong> <strong>Africa</strong>n and regional<br />

markets to Ciba<br />

We follow the global strategic direction:<br />

to become the leading specialty<br />

chemicals company; to have a global<br />

presence; to approach the market with<br />

a focused portfolio of 5 strong<br />

segments; to run the different business<br />

lines with a tailored approach; and to<br />

focus on cash flow and sustainable<br />

growth. Locally, we strive to become<br />

the preferred supplier and form partnerships<br />

where we can benefit from<br />

the combined know-how, technologies,<br />

economic factors, knowledge, etc.<br />

We market down the value-chain in<br />

order to give our customers the best<br />

possible products and service.<br />

The <strong>South</strong> <strong>Africa</strong>n and <strong>South</strong>ern<br />

<strong>Africa</strong>n markets are extremely important<br />

for the following reasons: <strong>South</strong><br />

<strong>Africa</strong>'s economy is one of the strongest<br />

of the emerging markets and is<br />

becoming globally recognized in terms<br />

of domestic markets as well as for<br />

quality exports; the country is a<br />

gateway to the developing economies<br />

of <strong>South</strong>ern <strong>Africa</strong>, and as we strive for<br />

a global presence, we would like to<br />

participate extensively in emerging<br />

markets; new untapped markets are<br />

plentiful within <strong>South</strong>ern <strong>Africa</strong> and<br />

regions accessible by <strong>South</strong> <strong>Africa</strong>; and<br />

<strong>South</strong> <strong>Africa</strong> has political stability and a<br />

large capacity of highly qualified and<br />

enthusiastic people with entrepreneurial<br />

charisma.<br />

What are the main features of the local<br />

markets and what will be the evolution of<br />

Ciba's activities in the Region for the next<br />

few years<br />

For many years, Ciba Specialty<br />

Chemicals has been a preferred<br />

supplier to various sectors of the<br />

industry. We have well-established<br />

market positions and solid business<br />

relationships and therefore, in this<br />

context, our customers and partners<br />

expect our commitment and presence<br />

now and in the future to assist them to<br />

grow their share in the export market.<br />

The evolution will come out of our<br />

R&D. Due to shorter lead times we<br />

will be able to introduce additional<br />

new products in a shorter time<br />

period.With our industry focused and<br />

down the value- chain approach, and<br />

by working closely with our customers,<br />

we will be able to assist them in<br />

anticipating where the market is<br />

moving and support them to market<br />

their products globally, which is crucial<br />

to strengthen our partnerships.<br />

Which product lines offer the most<br />

important growth opportunities<br />

We create effects to improve the<br />

quality of life, and produce a variety of<br />

Swiss Label in <strong>South</strong> <strong>Africa</strong> - 3 rd Quarter 2002


© Ciba Specialty Chemicals<br />

Ciba ® <strong>SA</strong>LCARE ® conditioner<br />

Ethnic Hair Care for coarse<br />

and tightly curly hair.<br />

COMPANY PROFILE<br />

® ® ® was tested in Zimbabwe on a rose farm<br />

IRAGON ® as well as Specialty Fabric<br />

Care products Ciba ® TINOLUX ® (photo<br />

bleaching), Ciba ® TINOFIX ® (color<br />

care) and Ciba ® TINOSORB ® (UV<br />

absorber) will open up new opportunities<br />

for our customers.<br />

Business Segment Coating Effects -<br />

We aim to grow with a high percentage<br />

of new products in this segment,<br />

and R&D is the key driver for entering<br />

new markets, particularly in the fast<br />

paced world of electronic materials. In<br />

order to grow our business we count<br />

on our new range of pigments: Ciba ®<br />

ULTRAPHOR ® . We see opportunities<br />

in "Customer Brand Management"<br />

where Ciba Specialty Chemicals can<br />

ensure that a company's corporate<br />

color remains the same over the<br />

products across our 4 business<br />

segments, adding value, innovation and<br />

market differentiation.<br />

years, all around the world. Our<br />

expertise in color branding will ensure<br />

that the biggest global brand-holders<br />

will rely on the colors and additives of<br />

Business Segment Textile Effects is<br />

certainly a host of effect chemicals<br />

Ciba Specialty Chemicals to achieve<br />

consistent shades.<br />

offering aesthetics and comfort<br />

(Teflon, Flame Retardants, Antimicrobials,<br />

UV Absorbers, etc.). In fiber<br />

and textile coloration we have a wide<br />

range of dyestuffs fulfilling requirements<br />

in color, light fastness requirements for<br />

the customer coupled with meeting<br />

stringent environmental legislation.<br />

Business Segment Plastic Additives -<br />

We will continue to leverage our<br />

strong position in the polymer additives<br />

market through innovation and<br />

marketing alliances to provide new<br />

effects, integrated customized solutions<br />

and one-stop shopping to the<br />

Plastic Industry.<br />

Business Segment Home & Personal<br />

Care - In specific areas such as the<br />

Ethnic Hair Care market, the Ciba ®<br />

Innovative products such as the photoselective<br />

additive Ciba ® CGL008 ® ,which<br />

absorbs wavelengths (e.g. green) that do<br />

<strong>SA</strong>LCARE ® conditioning polymers not stimulate plant growth, whilst emitting<br />

and <strong>SA</strong>LCARE rheology modifying liquid<br />

dispersion polymers offer a substantial other wavelengths (red or blue) that<br />

stimulate growth, will be of great importance<br />

opportunity<br />

Colors Ciba<br />

for<br />

VIBRACOLOR<br />

growth. Specialty<br />

, Ciba<br />

to the <strong>Africa</strong>n market. CGL008<br />

Ciba Specialty Chemicals<br />

Agronomic Study in <strong>South</strong>ern <strong>Africa</strong>: Rose Greenhouse<br />

with Photo-Selective Additive Ciba ® CGL008 ® ,<br />

Interior of Greenhouse. Roses growth with 30-40% higher<br />

yield and better quality recorded.<br />

and the yield of roses increased by over<br />

40%. Since East and <strong>South</strong>ern <strong>Africa</strong> are<br />

the biggest suppliers to the flower<br />

market in Amsterdam, this additive is a<br />

major growth opportunity.<br />

Many consumer products are losing<br />

color and taste or becoming unhealthy<br />

during storage on the shelf.Therefore,<br />

to reduce waste by increasing the shelf<br />

life, Ciba ® SHELFPLUS ® O2 and the<br />

UV-filter Ciba ® SHELFPLUS ® UV will<br />

be of great assistance to the entire<br />

value-chain of the packaging industry.<br />

■<br />

© Ciba Specialty Chemicals<br />

15<br />

The roots of Ciba Specialty Chemicals date back to 1758 when J.R. Geigy AG, the oldest<br />

chemicals company in Basel, Switzerland, began trading in chemicals and dyes. In 1971 Geigy<br />

merged with Ciba (a Basel-based chemicals company founded in 1884) to form Ciba-Geigy,<br />

a leading worldwide biological and chemicals group dedicated to satisfying needs in three<br />

diverse areas: healthcare, agriculture and industry.<br />

In March 1996 Ciba-Geigy and the pharmaceuticals company Sandoz announced plans to<br />

merge and form the world's largest life sciences group Novartis. Ciba Specialty Chemicals was<br />

spun-off and became operationally independent from Novartis on 01 January 1997.<br />

Ciba Specialty Chemicals formed its roots in <strong>South</strong> <strong>Africa</strong> when F. Hirst & Co (Pty) Ltd<br />

represented J.R. Geigy in 1935 and Ciba in 1947. Ciba <strong>South</strong> <strong>Africa</strong> was<br />

formed in 1960.<br />

Ciba Specialty Chemicals (Pty) Ltd<br />

<strong>South</strong> <strong>Africa</strong><br />

76 Steel Road - Spartan<br />

P.O. Box 443<br />

Isando, 1600 (<strong>South</strong> <strong>Africa</strong>)<br />

Tel.: +27 (0)11 929 43 40<br />

Fax: +27 (0)11 929 43 49<br />

Web site: http://www.cibasc.com<br />

E-mail: denise.stewart@cibasc.com<br />

Swiss Label in <strong>South</strong> <strong>Africa</strong> - 3 rd Quarter 2002


COMPANY PROFILE<br />

Pharmaco<br />

The gateway into <strong>Africa</strong><br />

through first class integrated healthcare services<br />

Pharmaco offers high quality pharmaceutical services which<br />

produce considerable added value for their partners. In five<br />

years, thanks to the expertise of their personnel and the<br />

excellence of their services, Pharmaco have achieved a leading<br />

position as providers of integrated pharmaceutical and<br />

healthcare services.<br />

16<br />

An interview with Mr. Roberto C. Agustoni,<br />

Chairman of Pharmaco<br />

What were your objectives in<br />

setting up Pharmaco<br />

When I founded Pharmaco in 1997, I had<br />

been working for many years for a large<br />

Swiss pharmaceutical group (F. Hoffmann -<br />

La Roche Ltd.) in various countries in<br />

<strong>Africa</strong>. The creation of Pharmaco arose<br />

from a challenge, which I was determined<br />

to meet. In fact, the pharmaceuticals<br />

companies were reviewing their value<br />

chain, and in a relatively restricted and<br />

segmented market, this called for a rationalisation<br />

of the different functions and<br />

services, in order to reach a better<br />

concentration of their activities and<br />

therefore better efficacy and results. Since<br />

I was familiar with these needs and<br />

constraints, and at the same time had<br />

more than 12 years of solid experience in<br />

<strong>Africa</strong>n markets, I decided to make available<br />

to the pharmaceutical companies<br />

complementary services in marketing,<br />

sales & promotion, product distribution,<br />

regulatory affairs and project management,<br />

on an exclusivity basis. This vision<br />

was founded on the willingness to<br />

succeed, integrity, broad local knowledge<br />

and a rationalised and highly effective<br />

structure, which was adapted to their<br />

activities and their needs, as well as to the<br />

very specific features, constraints and<br />

development of the <strong>Africa</strong>n pharmaceuticals<br />

markets.<br />

Pharmaco was immediately enthusiastically<br />

welcomed by the pharmaceutical<br />

industry, and today it offers its partners<br />

the possibility of sub-contracting certain<br />

activities by making available the necessary<br />

local expertise and infrastructure for<br />

the achievement of optimum results in an<br />

operation which creates real added value<br />

for all parties.<br />

How does Pharmaco organise its<br />

presence and its structures<br />

Pharmaco is physically present in 18 major<br />

countries on the <strong>Africa</strong>n continent and<br />

covers West <strong>Africa</strong>, Central <strong>Africa</strong>, East<br />

<strong>Africa</strong>, <strong>South</strong>ern <strong>Africa</strong> and the Indian<br />

Ocean. Our headquarters are in Johannesburg<br />

(<strong>South</strong> <strong>Africa</strong>), the hub of the<br />

continent, and we have a subsidiary in<br />

Abidjan (Ivory Coast) together with a<br />

regional office in Yaoundé (Cameroon).<br />

Our own qualified personnel are present<br />

in the majority of the sub-Saharan <strong>Africa</strong>n<br />

countries, and in some of them we have set<br />

up partnerships with existing local structures.This<br />

constant and watchful presence<br />

at the heart of the <strong>Africa</strong>n markets is<br />

essential to understanding the specifics of<br />

local pharmaceutical and health concerns,<br />

and enables us to act upon and adapt<br />

to them effectively and immediately.<br />

Important attention is constantly devoted<br />

to the professionalism of our personnel at<br />

any level, as well as to their comprehensive<br />

training & development.<br />

In <strong>South</strong> <strong>Africa</strong> and neighbouring<br />

countries, we operate our own distribution<br />

network through IHD (International<br />

Healthcare Distributors), a joint set up<br />

comprising 14 multinational pharmaceutical<br />

companies, one of which is<br />

Pharmaco. This highly sophisticated and<br />

fully integrated distribution system allows<br />

us to directly and constantly follow the<br />

product from start to finish, from manufacture<br />

to its end use (doctors, pharmacists,<br />

hospitals). With an on-line order<br />

system (which has become the second<br />

largest e-commerce site in the world) and<br />

full batch tracking, our direct distribution<br />

network caters for almost 10,000 customers.<br />

It employs about 500 people,<br />

responsible for the physical distribution<br />

across the area, and enables us to ensure<br />

delivery 365 days a year – in particular for<br />

life-saving products – with the greatest<br />

reliability in terms of the stability of the<br />

products, the effectiveness of the transport<br />

and the compliance with our customers<br />

needs and expectations.<br />

Furthermore, the differentiation of our<br />

performance is based on the building of<br />

true partnerships with our principals and<br />

our customers. I am convinced that it is<br />

only this genuine synergy which can generate<br />

positive and long lasting results. We<br />

endeavour to identify with our partner’s<br />

strategy and to preserve their identity in<br />

the market-place, adding on to this the<br />

skills of our organisation and the full<br />

range of our global and integrated<br />

services. Our main aim is to fully dedicate<br />

our resources and our expertise to the<br />

selected number of partners, for which<br />

we truly must become their most effective<br />

and trusted “gateway into <strong>Africa</strong>”.<br />

Swiss Label in <strong>South</strong> <strong>Africa</strong> - 3 rd Quarter 2002


Thus from the start, Pharmaco has<br />

chosen to offer its services to partners<br />

whose pharmaceutical products are<br />

complementary, and offer high quality to<br />

the end users. Our major present reference<br />

partners are : Roche (Switzerland),<br />

ICN Pharmaceuticals Inc. (U<strong>SA</strong>/Switzerland),<br />

Abbott Laboratories (U<strong>SA</strong>), Pierre<br />

Fabre Dermo-Cosmetiques (France),<br />

Bouchara-Recordati (France/Italy), GSK<br />

(<strong>South</strong> <strong>Africa</strong>), Essential Sterolin Products<br />

(<strong>South</strong> <strong>Africa</strong>), IHD (<strong>South</strong> <strong>Africa</strong>), etc.<br />

How does Pharmaco want to develop<br />

its activities in the next few years and<br />

which are the products and services<br />

that offer the greatest development<br />

potential<br />

Pharmaco has been able to successfully<br />

consolidate its position, with an annual<br />

average growth in turnover of about 25%<br />

since 1999, and we will be seeking similar<br />

developments in future, for <strong>South</strong> <strong>Africa</strong><br />

and for the rest of the <strong>Africa</strong>n continent.<br />

At present, the IMS figures place us 54 th<br />

among the 230 pharmaceutical companies<br />

established in <strong>South</strong> <strong>Africa</strong>. However,<br />

major attention is constantly being paid<br />

to the impact of the new legislation in the<br />

healthcare market and to the ongoing<br />

COMPANY PROFILE<br />

Pharmaco<br />

changes that are deeply affecting the way<br />

pharmaceutical business is conducted in<br />

the country.As the registration and launch<br />

of new products in the different <strong>Africa</strong>n<br />

markets is accelerating, we do envisage a<br />

doubling of our <strong>South</strong> <strong>Africa</strong>n turnover<br />

within the next 4 to 5 years. In the rest<br />

of the <strong>Africa</strong>n continent, where the global<br />

market situation is slightly different, we<br />

still aim for yearly growth rates of over<br />

15% for our partners products.<br />

However, our greatest reward today is to<br />

see how our partners have not only been<br />

able to maintain the majority of their<br />

products, but how their sales and market<br />

shares are increasing on a regular and<br />

durable basis in the various countries of<br />

Some members of Pharmaco team<br />

in Johannesburg during a meeting.<br />

A global and complete range of services dedicated to partners<br />

● Sales Promotion - All pharmaceutical promotions (Rx + OTC) by qualified personnel,<br />

on an exclusivity basis.<br />

● Marketing - Set up of products strategies and tactics, as well as full production of<br />

promotional material and other marketing tools. Management of specific market<br />

research according to partner's needs and objectives.<br />

● Medical Marketing / Clinical Trials - Management of any promotional activity<br />

requiring a direct medical approach. Set up of local medical clinical trials.<br />

● Regulatory Affairs - Implementation of all activities related to the submission and the<br />

follow up of registration files.<br />

● Pharmaceutical Distribution - Use of very effective and dynamic structures,<br />

for optimal local distribution.<br />

● Access to the <strong>South</strong> <strong>Africa</strong>n Pharmaceutical Market / Distribution - Through<br />

its Global set up and legal Applicant status, Pharmaco offers easy access to <strong>South</strong> <strong>Africa</strong>,<br />

the biggest and most challenging market in the <strong>Africa</strong>n continent: Contacts, Registration<br />

of products (Applicant), Sales Promotion, Marketing, Distribution, and Specific<br />

Projects.<br />

Operating with the most sophisticated system in the <strong>South</strong>ern Hemisphere -<br />

International Healthcare Distributors (IHD) -, Pharmaco offers its partners direct<br />

access to about 10,000 customer accounts, up to 9,000 deliveries daily, a permanent<br />

products control and a unique and truly marketing competitive edge.<br />

● Management of Specific Healthcare Products - Through Pharmaco's versatility,<br />

local presence and partnerships. This also encompasses the acquisition by Pharmaco<br />

of its partner's strategically divested pharmaceutical products.<br />

<strong>Africa</strong>. Furthermore, whether it be sales,<br />

distribution, access to new markets or the<br />

establishment of medical marketing operations<br />

and local clinical studies, our joint<br />

forces have enabled them to considerably<br />

reduce times, risks and the operational,<br />

promotional and administrative costs… In<br />

short: to be as effective and efficient as<br />

possible in their various activities.<br />

At present the “headline” products that<br />

we distribute and/or promote, belong to<br />

the following therapeutic categories:<br />

antibiotics, antiretrovirals, antimalarial<br />

and anti-parasitics, central nervous system,<br />

dermatologicals,oncology,metabolic disorders,<br />

gastro-intestinal disorders…<br />

We do believe that there are still a lot of<br />

opportunities for development within<br />

these product ranges, and are certainly<br />

very determined to continue seizing them.<br />

Certain ongoing projects have led to the<br />

creation of dynamic partnerships between<br />

Pharmaco and groups of doctors, pharmacists<br />

and other organisations, which<br />

now meet regularly with our support, for<br />

forums, discussions, workshops or training<br />

on specific subjects. Through these<br />

networks we are able to have direct<br />

contact with the markets and their needs,<br />

for better results in the provision of<br />

appropriate solutions. This aspect of<br />

our business will continue to receive<br />

important attention for consolidation<br />

and development.<br />

We strongly believe in long term<br />

partnerships with our principals and our<br />

customers, and the entire Pharmaco<br />

organisation shall continue to work<br />

hard towards their highest possible<br />

development in any business aspects,<br />

which will create added value and success<br />

for all parties involved.<br />

■<br />

Fedsure Close 2, Norwich Close<br />

P.O. Box 786522<br />

Sandton, 2146 (<strong>South</strong> <strong>Africa</strong>)<br />

Tel.: +27 (0)11 784 00 77 / 784 69 85 or 69 88<br />

Fax: +27 (0)11 784 69 94<br />

E-mail : pharmaco@pharmaco.co.za<br />

www.pharmaco.co.za<br />

17<br />

Swiss Label in <strong>South</strong> <strong>Africa</strong> - 3 rd Quarter 2002


COMPANY PROFILE<br />

SGS <strong>South</strong> <strong>Africa</strong> (Pty) Ltd.,<br />

an affiliate of SGS Geneva,<br />

was established in 1949.<br />

This diverse company is a leading force<br />

in verification and monitoring services<br />

to business together with certification<br />

and inspection services to governments<br />

and multinational corporations.<br />

Dr. Patrick Noual,<br />

Managing Director SGS <strong>South</strong> <strong>Africa</strong>.<br />

18<br />

S<br />

GS<br />

comprises dedicated professionals who<br />

embrace a performance ethic, delivering unparalleled<br />

service to their diverse customer base, thus<br />

setting the standards of performance for the industry.<br />

Services consist of a comprehensive range of packages,<br />

tailored to client’s specific requirements.<br />

The group provides services the following main market<br />

segments:<br />

● Minerals ● Agriculture<br />

● Oil Gas and Chemicals ● Automotive<br />

● Consumer markets ● Life Sciences<br />

● Industrial markets ● Public Sector<br />

The basic profile of SGS services comprises of import /<br />

export onsite supervision, measuring, calibration and<br />

inspections, field / laboratory testing and analysis, marine<br />

insurance, project management and non-destructive<br />

testing, system and product certifications as well as<br />

hygiene risk management programmes. New services<br />

include the covert marking of product to control revenue<br />

losses for industries and governments.<br />

As Dr. Patrick Noual, Managing Director, underlines: "SGS<br />

has a strong presence in <strong>South</strong>ern <strong>Africa</strong> with a workforce of<br />

over 600 collaborators, half of whom are based in <strong>South</strong><br />

<strong>Africa</strong>. In addition to the basic SGS services, we have developed<br />

a specific expertise in geochemical analysis, and are also<br />

very active in the fields of agriculture organic certification,<br />

Hygiene and Health." The company has offices in Namibia,<br />

Zimbabwe, Zambia and Malawi (mainly focused on Oil,<br />

Gas and Chemical services as well as on Agriculture<br />

services), in Mozambique (with activities in all sectors)<br />

and is also active in the Indian Ocean at Mauritius and<br />

Madagascar (Textile products and Food Hygiene).<br />

State-of-the-art t infrastructures<br />

and innovativ<br />

vative e services<br />

In <strong>South</strong> <strong>Africa</strong>, SGS has its headquarters in Midrand<br />

(Johannesburg) and offices in Cape Town, Durban and<br />

Richard Bay. It also runs laboratories dedicated to<br />

Minerals analyses in the mining regions (gold, diamond,<br />

coal…) of Richard Bay and Barberton. The SGS<br />

Headquarters has established a newly centralised SGS<br />

Laboratory in Midrand, which carries out technical<br />

analyses and offers consulting services in all sectors, to<br />

clients all over the <strong>SA</strong>DC region. It carries out routine<br />

analysis and specialised research through analytical<br />

services such as ORGANIC (Agricultural and Food), including<br />

Nutritional and Microbiological analysis services, or<br />

as INORGANIC (Mineral and Environmental), including soil<br />

and plants, minerals and fertiliser analysis.<br />

By developing new innovative services and improving<br />

existing ones, SGS is strengthening its position at the<br />

forefront of developing innovative products in addition to<br />

its existing areas of expertise.The latest offerings of SGS,<br />

such as product marking services, are proof of the<br />

company quest to remain the preferred choice in risk<br />

SGS is THE world’s leading verification, testing and certification company.<br />

WHEN YOU NEED TO BE SURE


COMPANY PROFILE<br />

management. The product marking market was<br />

pioneered by SGS Kenya in co-operation with Biocode<br />

Ltd., a specialist high tech company based in UK. This<br />

new marker programme enables SGS to prevent and<br />

control cross border smuggling and fraud by detecting<br />

adulteration or dilution of fuel and a host of other<br />

products. "Thanks to this technology and to its results, SGS<br />

Kenya has received a PIEA innovative award last year -<br />

Patrick Noual says. Furthermore, this marker programme<br />

can also be used in the testing and control of drugs and<br />

medicines."<br />

●<br />

●<br />

SGS Services<br />

Trade Assurance Services<br />

Services have been developed to provide comprehensive solutions<br />

to protect government revenues and facilitate trade.<br />

Services include import verification, valuation support, origin<br />

validation, risk management, single window pre-export verification<br />

and certification, electronic trading community<br />

networks and export promotion.<br />

Oil, Gas and Chemical Services (Redwood)<br />

This sector comprises trade inspection, testing services,<br />

quality assurance, risk management and technical support<br />

services to the petro-chemical industries.<br />

SGS R<strong>SA</strong> in conjunction with Biocode has a technologically<br />

advanced solution to covertly mark products and later identify<br />

them to control revenue losses.This technology can be used<br />

to mark products as diverse as fuel, lubricants, spirits, pesticides,<br />

tobacco and pharmaceuticals.<br />

●<br />

Minerals Services<br />

This division serves mainly the coal trade, iron ores,<br />

non-ferrous metals and precious metals industries supported by a<br />

well-equipped Coal laboratory at the Richards Bay Coal Terminal.<br />

SGS <strong>South</strong> <strong>Africa</strong> headquarters in Midrand.<br />

SGS <strong>South</strong> <strong>Africa</strong> (Pty) Ltd.<br />

●<br />

Consumer Services<br />

This division has particular expertise in assessment and statistical<br />

product verification for manufacturers, importers, exporters<br />

and retailer consumer products. In food, this division<br />

covers the entire food production chain from primary<br />

production through food processing, transportation and<br />

distribution networks to final consumer. A full range is also<br />

provided for safety and quality solutions in the service sector<br />

including hotels and restaurant chains.<br />

19<br />

P.O. Box 5472<br />

399, George Road - Unit 5, Mifa Park<br />

Randjespark, Midrand<br />

Halfway House, 1685 (<strong>South</strong> <strong>Africa</strong>)<br />

Tel.: +27 (0)11 652 14 00<br />

Fax: +27 (0)11 652 15 25<br />

E-mail: za_marketing@sgs.com<br />

Web site: http://www.sgs.com<br />

●<br />

●<br />

Systems and Services Certification<br />

This division is a participant in the global quality<br />

management systems certification market. Service embraces a<br />

wide range of management systems, auditing competencies<br />

and related training. They include ISO9000, ISO14000 (environment),<br />

QS9000/TS (automotive), OH<strong>SA</strong>S18000, etc.<br />

Agricultural Services<br />

Operation entails inspection of commodities shipped worldwide.<br />

Inspectors perform diverse tasks, including weighing,<br />

sampling, analysis, loading and discharge supervision, tally,<br />

guarantees of weight and quality. Further, SGS R<strong>SA</strong> has a<br />

specialized laboratory in Midrand.<br />

SGS is THE world’s leading verification, testing and certification company.<br />

WHEN YOU NEED TO BE SURE


Nestlé<br />

COMPANY PROFILE<br />

Outstanding quality food<br />

that meet the needs and tastes of<br />

people throughout their lives<br />

20<br />

© Nestlé <strong>South</strong> <strong>Africa</strong><br />

How has Nestlé developed in <strong>South</strong><br />

<strong>Africa</strong><br />

Even before commercialising its<br />

products in Europe, <strong>South</strong> <strong>Africa</strong> was<br />

one of the first countries where<br />

Nestlé began to sell its products, so it<br />

seems that the company has always<br />

been here! Nestlé's presence in <strong>South</strong><br />

<strong>Africa</strong> dates back to 1872 when<br />

condensed milk was brought into the<br />

country. From the beginning of the<br />

20th century, the company began to<br />

commercialise other products in<br />

<strong>South</strong> <strong>Africa</strong>, notably Nestlé's Swiss<br />

Milk Chocolate. By then, it had set up<br />

offices in Cape Town and subsequently<br />

registered as a local company in 1916.<br />

Nestlé then established its first<br />

factories in <strong>South</strong> <strong>Africa</strong>: a condensed<br />

milk factory at Donnybrook in 1927 as<br />

well as a factory in Estcourt and<br />

Franklin.<br />

What are the core activities of Nestlé<br />

<strong>South</strong> <strong>Africa</strong> and how important is the<br />

regional market to the company<br />

In addition to its headquarters located<br />

in Randburg (Johannesburg), Nestlé<br />

<strong>South</strong> <strong>Africa</strong> has 14 factories across<br />

the country, one factory in Zimbabwe<br />

and another in Kenya.This factory was<br />

Founded in Switzerland in 1866, Nestlé has grown from<br />

originally producing milk and dietetic foods to providing a<br />

complete range of food and drink products, becoming the<br />

world's largest food company. Nestlé products were<br />

available in <strong>South</strong> <strong>Africa</strong> since the 1870s and the company<br />

is the largest Swiss investor in <strong>Africa</strong>. It has 16 factories<br />

and over 5800 employees in the <strong>South</strong>ern and Eastern<br />

<strong>Africa</strong> Region, with its Head Office in <strong>South</strong> <strong>Africa</strong>.<br />

An interview with Mr. Alfred KAELIN,<br />

Chairman and Managing Director of Nestlé <strong>South</strong> <strong>Africa</strong> (Pty) Ltd<br />

built two years ago in order to strengthen<br />

our capacities and better<br />

respond to the needs of the <strong>South</strong>ern<br />

and Eastern <strong>Africa</strong> Region. We are<br />

active in the entire Region, which<br />

includes the Indian Ocean islands<br />

(Mauritius and Madagascar). Our<br />

biggest challenge is to strategically<br />

develop our presence and to meet the<br />

needs of this huge regional market of<br />

214 million inhabitants, on a territory<br />

which is larger than the continent of<br />

Europe.<br />

Major investments are made in our<br />

factories, where all the products for<br />

the Region are manufactured. We<br />

currently operate at full capacity and<br />

export 5% to 8% of our total production<br />

to the Middle East, Canada and<br />

<strong>Com</strong>monwealth countries.<br />

Apart from the factories, our products<br />

and our people, large investments are<br />

made in "out of home channels" that is<br />

to say in vending, catering and distribution.<br />

In order to rationalise the<br />

distribution network, considering the<br />

wide area we have to supply, we have<br />

chosen to establish a few strategic<br />

depots and sales offices in the country.<br />

How have the different business divisions<br />

evolved and has Nestlé <strong>South</strong> <strong>Africa</strong> developed<br />

specific products and brands<br />

Nestlé <strong>South</strong> <strong>Africa</strong> carries basically<br />

the entire Nestlé portfolio of<br />

products. Locally, Nestlé has always<br />

striven to become the preferred<br />

provider and, in this respect, it is<br />

crucial that our products answer the<br />

specific needs of our market, both in<br />

terms of taste and in terms of cost.<br />

© Nestlé <strong>South</strong> <strong>Africa</strong><br />

Swiss Label in <strong>South</strong> <strong>Africa</strong> - 3 rd Quarter 2002


COMPANY PROFILE<br />

Nestlé<br />

Therefore, we have Nestlé local<br />

brands and, except for the Infant<br />

Nutrition portfolio (milk, infant<br />

dinners and infant desserts), all our<br />

products are specifically designed and<br />

manufactured for the <strong>South</strong> <strong>Africa</strong>n<br />

market.<br />

Nestlé <strong>South</strong> <strong>Africa</strong>'s portfolio<br />

comprises a wide range of products<br />

that are organised into different business<br />

divisions. Our biggest business is<br />

Milk and Nutrition, which includes<br />

infant nutrition, the growing up range,<br />

adult nutrition and clinical nutrition.<br />

The Beverages business is mainly<br />

driven by coffee, Milo and tea.<br />

Then we have the Chocolate and<br />

Confectionery business (including<br />

sugar lines, assortments and countlines),<br />

the Culinary and Grocery business<br />

(Maggi products, culinary milks,<br />

sauces, mayonnaise and spreads) and<br />

the Pet food business.<br />

We also have an established Water<br />

business in <strong>South</strong> <strong>Africa</strong>. Today Nestlé<br />

is the biggest bottled water holding<br />

company in the world, with 12% of the<br />

world market, and the bottled water<br />

market is expected to grow by 20%<br />

per annum over the next 5 years. In<br />

2000, Nestlé <strong>South</strong> <strong>Africa</strong> acquired<br />

two local mineral water brands -<br />

Valvita and Schoonspuit - that are<br />

distributed throughout the country.<br />

Valvita is the second largest mineral<br />

water brand in <strong>South</strong> <strong>Africa</strong>, in terms<br />

of volume. In addition, Nestlé <strong>South</strong><br />

<strong>Africa</strong> has a fully integrated Food-<br />

Services Division, dedicated to<br />

vending machines and products as well<br />

as to catering products.<br />

Which products offer the most important<br />

growth opportunities<br />

In the <strong>South</strong> <strong>Africa</strong>n market, Nestlé<br />

has many key products, notably in the<br />

Milk and Nutrition business (particularly<br />

for infant and growing up<br />

products). Nestlé also has a leading<br />

position for coffees and creamers, for<br />

example with the Nescafé products<br />

and the local brand Ricoffy (a blend of<br />

chicory and coffee beans) which is the<br />

number one coffee in the country, as<br />

well as Cremora, regarded as the top<br />

creamer in the country. The company<br />

also has a leading position in chocolates<br />

and sugar lines, for example, with<br />

big brands such as Quality Street or<br />

the leading Nestlé local brand Bar-<br />

One, a chocolate bar which is one of<br />

<strong>South</strong> <strong>Africa</strong>’s favourites since the<br />

1950s.<br />

Nestlé is market leader for dog and<br />

cat foods and is continuously extending<br />

its range of products. We<br />

currently have two factories, one for<br />

dry food and the other for wet food,<br />

and a new one is currently under<br />

construction.<br />

How is Nestlé <strong>South</strong> <strong>Africa</strong> undertaking its<br />

social responsibility task and how does<br />

Nestlé contribute towards the transformation<br />

of the country<br />

In every context, Nestlé is definitely a<br />

very forward thinking company. First<br />

of all, this is seen in the state-of-theart<br />

infrastructure and equipment used<br />

in our factories. The company prides<br />

itself on manufacturing quality<br />

products, as well as on the total<br />

commitment to consumer satisfaction.<br />

In this respect, we can underline that<br />

Nestlé launched the first telephone<br />

answering service for consumers in<br />

<strong>South</strong> <strong>Africa</strong> in 1982.<br />

Furthermore, central to Nestlé's<br />

philosophy, is commitment to its<br />

people in terms of training and development,<br />

commitment to environment<br />

protection, and involvement in major<br />

social responsibility initiatives.<br />

© Nestlé <strong>South</strong> <strong>Africa</strong><br />

Developing people and taking care of<br />

them is a challenge both for the future<br />

of the company and the evolution of<br />

the country, and that is why we have<br />

many programmes relating to people<br />

at various levels in the company. For<br />

example, we have a programme on<br />

Adult Basic Education and Training<br />

(ABET) for all employees who have<br />

not had the opportunity to be part of<br />

a formal schooling system. Locally, we<br />

have also developed internal and<br />

external training programmes in all<br />

disciplines. We currently also have 41<br />

<strong>South</strong> <strong>Africa</strong>n employees who have<br />

been sent to other markets to gain<br />

experience, as well as to share their<br />

skills and knowledge with other<br />

markets.<br />

Nestlé <strong>South</strong> <strong>Africa</strong> also supports<br />

socially constructive projects, giving<br />

preference to those having a longterm<br />

and a multiplier effect. The<br />

Nestlé social responsibility programme<br />

supports several major projects run by<br />

non-governmental organisations and<br />

community based organisations, that<br />

identify and implement practical solutions<br />

in the areas of health and nutrition,<br />

socio-economic development<br />

and protection of the environment.<br />

The purpose of our investment in<br />

such programmes is to contribute to<br />

the upliftment of communities in our<br />

country.<br />

■<br />

Nestlé (<strong>South</strong> <strong>Africa</strong>) (Pty) Ltd.<br />

192 Hendrik Verwoerd Drive<br />

P.O. Box 50616<br />

Ranburg, 2125 (<strong>South</strong> <strong>Africa</strong>)<br />

Tel.: +27 (0)11 889 6000<br />

Fax: +27 (0)11 889 6311<br />

Web site: http://www.nestle.co.za<br />

21<br />

Swiss Label in <strong>South</strong> <strong>Africa</strong> - 3 rd Quarter 2002


COMPANY PROFILE<br />

Schindler Lifts <strong>SA</strong><br />

A company that elevates<br />

modernity and service to new levels<br />

A wholly owned subsidiary of Schindler Management AG Ebikon<br />

(Switzerland), Schindler Lifts <strong>SA</strong> (Pty) Ltd was established in<br />

1949. Both internationally and in <strong>South</strong> <strong>Africa</strong>, the company is a<br />

market leader, providing state-of-the-art elevator and escalator<br />

products and services.<br />

22<br />

How the presence of Schindler in <strong>South</strong><br />

<strong>Africa</strong> has evolved<br />

Established for over 50 years, we can say<br />

that Schindler Lift <strong>SA</strong> is a truly <strong>South</strong><br />

<strong>Africa</strong>n company. First of all in terms of<br />

presence: we have a workforce of 550,<br />

and offices and workshops across the<br />

whole country. Over the past few years,<br />

since our factory was no longer appropriate<br />

we source products from Europe,<br />

the US and Asia Pacific, and have moved<br />

toward transferring skills and supporting<br />

<strong>South</strong> <strong>Africa</strong>n sub-contractors, notably<br />

empowerment enterprises, that now<br />

provide local manufacturing. It is a priority<br />

to us contributing significantly to the<br />

transformation of the country and we<br />

have a major role to play within the<br />

company and in our industry ensuring<br />

that it is representative of the <strong>South</strong><br />

<strong>Africa</strong>n demographics.<br />

We are also strongly committed to developing<br />

our people to a high extent at all<br />

levels (technical, management, marketing…).<br />

Employees are encouraged to<br />

attend international conferences and to<br />

work on international assignments<br />

within the group and, in addition to<br />

customised Schindler training, staff may<br />

attend training courses in Switzerland.<br />

What is the company's position and what<br />

are the main features of its activities<br />

The company enjoys a strong position in<br />

<strong>South</strong> <strong>Africa</strong>, and we are the market<br />

leaders in the new installation market.<br />

New products sources for the <strong>South</strong><br />

<strong>Africa</strong>n market include the Smart MRL<br />

and Eurolift elevators, the 9300 and 9700<br />

escalators, the 9500 inclined walkways,<br />

as well as new technologies such as the<br />

An Interview with Mr.Terry HIME,<br />

Managing Director Schindler Lifts <strong>SA</strong><br />

Miconic 10 lift system which optimises<br />

passenger-handling capacity by up to<br />

50%. Our global support system and<br />

sourcing strategy in combination with<br />

the local manufacture and the support<br />

of local suppliers, enable us to ensure<br />

competitiveness and to carry out any<br />

kind of projects with the right project<br />

management.<br />

That said, it is a priority to be involved in<br />

the revamping and modernising of installations.<br />

Schindler Lifts <strong>SA</strong> services over<br />

7 000 units, among which many are old<br />

and with a huge complexity of technical<br />

specifications. Therefore, we constantly<br />

make sure that we have the technical<br />

back-up, parts and the necessary expertise.<br />

On the other hand, we aim to<br />

ensure that customers get international<br />

and standardised products that are up to<br />

date and that they receive the appropriate<br />

project management locally. We<br />

now have a leading position in modernising<br />

and maintaining our own lifts and<br />

elevators as well as those of our competitors<br />

and we seek to expand our portfolio<br />

to over 8 000 in coming years.<br />

What are the main reference-works in<br />

<strong>South</strong> <strong>Africa</strong> and in neighbouring countries<br />

In <strong>South</strong> <strong>Africa</strong>, significant recent<br />

contracts include the Melrose Arch, the<br />

Johannesburg International Airport,<br />

Menlyn Shopping Centre in Pretoria and<br />

Schindler's sets of lifts and escalators at the Gateway<br />

Shopping Centre in Durban.<br />

Gateway Shopping Centre in Durban, as<br />

well as several projects for corporate<br />

head offices and hospitals. Notably, we<br />

have entered into a joint venture with<br />

an empowerment company Khupuka<br />

Schindler which has secured contracts<br />

for the Pretoria Academic Hospital.<br />

We are indeed making remarkable<br />

progress establishing a strong presence<br />

in Sub Saharan <strong>Africa</strong>, a process that is<br />

having beneficial spin-offs in <strong>South</strong> <strong>Africa</strong><br />

itself: we have set up a joint venture in<br />

Mozambique and we support operations<br />

in Zimbabwe, Botswana, Namibia, Kenya,<br />

Zambia,Angola and Mauritius.<br />

■<br />

Schindler Lifts S.A. (Pty) Ltd.<br />

Head Office: 27 Hippo Road, Springfield<br />

P.O. Box 3615 - Johanesburg, 2000<br />

Tel.: +27 (0)11 681 88 88<br />

Fax: +27 (0)11 681 88 89<br />

Web site: http://www.schindler.co.za<br />

© Schindler Lifts <strong>SA</strong> (Pty) Ltd.<br />

Swiss Label in <strong>South</strong> <strong>Africa</strong> - 3 rd Quarter 2002

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