An EgyptiAn SuccESS Story

Transcription

An Egyptian
Success Story
From Family Business to Regional Player
Company Profile
2014
CONTENTS
02
04
06
08
10
12
Message from
the Chairman
Our Storied Past: A
Foundation for Growth
Key Milestones
GB Auto at a Glance
A Portfolio of Success:
Our Brands
14
26
28
30
32
Diversity in Action:
Business Units
Hard at Work: Assembly
and Manufacturing
Investing in Tomorrow:
GB Academy
A Boundless Future:
Open Road Ahead
Contact Us
Growth, Resiliency and
Expansion: A Regional Story
GB Auto Company Profile 2014
1
Message from
the chairman
Success Story
The story of GB Auto is a story of
success: A family success story, an
Egyptian success story, and, increasingly, a regional success story.
Certainly, the years since the Egyptian Revolution of January
2011 have been particularly challenging for Egypt and for the
companies doing business here. But the truth is that GB Auto
has not grown from a simple family business into one of the
leading automotive companies in Egypt on timid leadership
and a “wait-and-see” approach to doing business.
It is well-worth repeating something I recently said: If there
is any magic in business, it is in having the courage to move
forward, remain resilient and take risks when others would
bunker down, and the wisdom — and, sometimes, luck — to
tread cautiously when others would rush in. That story is the
story of GB Auto this year, and all the years preceding it,
as we invest in tomorrow by spending to support the future
growth of both our domestic and regional business despite
the prevailing climate of the day.
From our humble beginnings in the 1940s as a family
trading business, we have grown to encompass a group of
businesses, with activities that cross industries —from manufacturing to distribution to financing. We represent leading
global brands and we have grown our own brands from the
ground up. We are present in every major and secondary
city in the country, and many of the small towns, as well.
We have six lines of business with more than 11 products
and services and 20 major brands (including our own) on
offer. We employ more than 6,000 Egyptians from the sales
floor to the assembly line to the C-Suite, providing jobs and
supporting the economy during trying times. In short, we
are an Egyptian success story.
And as we expand beyond our original borders — from
Egypt into the region’s major growth markets of Iraq, Libya,
Algeria and Jordan — we are becoming a regional success
story as well, positioning ourselves to benefit from growth
in those markets while keeping our eye on other promising
regional opportunities.
I hope as you read through this profile you will join me in
my optimism about the future of GB Auto, which I consider
one of Egypt’s and the region’s most dynamic companies.
As we continue on our journey, I am thrilled with our prospects going forward and remain confident that the best is
yet to come.
Dr. Raouf Ghabbour, CEO
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our storied past:
a foundation for growth
Vision and Mission
Building on its storied past — and with an eye to
tomorrow — GB Auto seeks to become the leading
automotive assembler and distributor in the Middle
East and Africa, securing and maintaining market
leadership across the company’s lines of business
and geographical footprint.
GB Auto also aims to further solidify the trust
earned through years of reliability and success,
guaranteeing consistent returns for shareholders
while keeping all stakeholders proud of their affiliation with the company through its adherence to
the highest standards of customer service, quality
control and corporate ethics.
GB Auto is a true Egyptian success story, having grown
from a family concern into a domestic automotive company into a regional automotive powerhouse. The company
is innovative, resilient and focused on growth — creating
brands to fill market gaps, expanding its expertise from
assembly to manufacturing to after-sales and training, expanding its geographic footprint, and pursuing partnerships
with global OEMs (original equipment manufacturers).
GB Auto does not treat its products and services as a means
to an end — the company sees each and every transaction
as the potential beginning of a long-term partnership.
Behind every vehicle we assemble in our factories, there is
a success story, and with each new product, each vehicle purchased, and each service center visit, a new story begins.
For more than 70 years, GB Auto has thrived under the
leadership of one of Egypt’s visionary business families.
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The company has grown from a small family operation
to a top public corporation guided by the highest caliber
executives. In seven decades of business, GB Auto has
excelled with a commitment to the belief that Egypt’s
modern economy presents great potential to support a
robust automotive industry.
Today, GB Auto is a leading player in the Egyptian automotive industry, providing outstanding value-for-money
and built-to-last products. The company has operations
in key markets and sectors throughout the Middle East
and North Africa, and since 2007 has been listed on the
Egyptian Exchange (EGX).
In the 1940s, Sadek and Kamal Ghabbour — with the foresight to envision the Egypt of today — began a family-run
trading business. One of the only truly private companies
at the time, the brothers’ firm, which was soon incorporated
as Ghabbour Brothers, had interests across a number of
business lines, including automotive related products, construction materials, home appliances and electronics.
Throughout its history, GB Auto has built a strong reputation for standing behind its customers and is renowned for
providing unrivaled service and support. With top-notch
after-sales services and new vehicles sales, the company’s
service and parts outlets make GB a fully integrated
automotive player — a “one-stop-shop” that provides customers with lower ownership costs and real value.
Thirty years later, Raouf Ghabbour decided to focus on
the automotive industry and the company embarked on the
path of regional, manufacturing and auto-related trading.
Supporting the Economy
GB Auto has demonstrated its support for the Egyptian
economy by not only sustaining operations, but actively
expanding and continuing to take risks during a time of
political and economic uncertainty. As one of Egypt’s
biggest employers — growing to 6,000 employees in
2013 — GB Auto is doing its part to ensure the economy in Egypt continues along its path to growth.
Behind every car is a success story — from the Egyptian
employee assembling it to the consumer sharing memories
in the final product. With operations across the automotive
value chain, from assembly and sales to distribution and
after-sales services, GB Auto provides support throughout
the journey.
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Key Milestones
1948
2007
Sadek and Kamal Ghabbour establish a family-run business.
GB Auto completes an initial public offering and shares begin
trading on the Cairo and Alexandria Stock Exchange (now
the Egyptian Exchange). The IPO raised EGP 1.2 billion.
1956
The Ghabbour Brothers officially incorporate. The business
trades in automotive related products, home appliances, and
construction materials such as cement and ceramics.
1970s
Egypt’s open door policy directs Ghabbour Brother’s business focus to the automotive industry. The brothers secure
licenses to market passenger cars, bus and automotive parts.
1985
Ghabbour Brothers establish assembly operations to
manufacture bus bodies under a technical agreement with
Scania AB.
1992
Ghabbour Brothers is appointed as exclusive distributor
of Hyundai passenger cars in Egypt. The move marked
Hyundai’s definitive move into the Egyptian passenger car
market and the brand immediately captured market share
with its wide-ranging, competitively priced portfolio.
1995
Ghabbour Brothers is granted a technical license to assemble CKDs for Hyundai’s passenger cars in Egypt. The
move further solidifies the company’s strategic relationship with Hyundai.
1996
Begins operations as the exclusive local distributor of Bajaj
motorcycles.
• Enters a joint venture with Marcopolo, the Brazil-based
global bus body manufacturer, to build a state-of-the-art
production facility in Suez where the JV produces buses
for domestic and export sales.
• Establishes a financial leasing company to operate as GB
Lease, which will finance commercial vehicle sales as well
as corporate clients purchasing passenger cars for fleets.
2009
• Launches a Global Depositary Receipt (GDR) program
without a capital increase in May 2009 that allows global
investors to trade its shares in London and New York.
• Establishes Mashroey, a majority-owned micro-finance
joint venture to finance purchases of Bajaj-branded motorcycles and three-wheelers.
2010
• Enters into an exclusive distributorship agreement to
import and distribute Mazda-branded vehicles in Egypt.
• Enters into a joint venture that will see the company distribute Hyundai vehicles in Iraq through a joint venture
with the Al-Kasid group of companies, which holds the
exclusive rights to distribute Hyundai products in Iraq.
• Signs an agreement to be the exclusive distributor of
Yokohama passenger car, semi-truck, truck, bus and construction equipment tires in Egypt.
• Initiates a company-wide human resources development
program.
2011
1997
Begins operations as the exclusive local distributor of Fuso
and Volvo trucks and buses.
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2008
• Completes construction of its new paint facilities in the
Greater Cairo Area, more than doubling capacity.
• Soft-launches the GB Academy, which will focus on improving employees’ soft skills, including communication
strategies, critical and creative thinking, time management, business ethics, and more.
• Opens its first after-sales facility in Iraq, with 70 working
bays in Baghdad.
• Places in the top 50 companies on the Hawakamah
Institute for Corporate Governance’s S&P Hawakamah
Environment, Social, and Corporate Governance (ESG)
Pan Arab Index.
2012
• Announces a strategic partnership with Geely Automobile
Holding Ltd of China that will see GB Auto engage in
CKD assembly in Egypt and distribution in the MENA
region, beginning with the Egyptian market.
• Signs a contract with Iveco Irisbus, a Fiat Industrial
company and global industry leader, to be the exclusive
distributor of Iveco bus chassis in Egypt.
• Drive, GB Auto’s consumer finance venture, begins operations, financing consumer purchases of passenger cars.
• Acquires the exclusive right to distribute internationallyrecognized ZC Rubber’s Westlake passenger car, van,
TBR and OTR tires in the Egyptian market.
• Inaugurates the newly revamped state-of-the-art Prima
plant, which now features latest-generation qualitycontrol systems, fully automated conveyer transits and the
first fully robotic paint shop in the region.
• Submits its first communication of progress for the UN
Global Compact.
• Signs an agreement to distribute Karry micro-micro range
vehicles and an agreement with JAC to source 4 and 7.5
toner chassis for bus building.
• Receives Geely International Corporation’s ‘2012 Best
New Distribution’ Award.
2014
• Acquires distribution rights for Goodyear tires in Algeria
• Begins CKD projects in Egypt to serve Passenger Car and
Commercial Vehicle markets
• Finalizes plans to launch a pre-owned automobile business in Egypt
• Enters into an exclusive strategic alliance to distribute Gazprom Neft-Lubricants
2013
• Continues to expand its geographical footprint, with key
brand representations in Algeria and Libya.
• Begins instruction at GB Academy, the company’s automotive-specific training academy.
• GB Polo signs contract with General Motors East Africa
to export buses.
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GB Auto at a Glance
Having built a foundation for success, GB Auto’s
diverse operations now span six lines of business
71.6%
of FY13 Group Sales
13.5%
of FY13 Group Sales
Passenger Cars
• Assembly and distribution of imported completely
knocked-down (CKD) kits with a production capacity of 60,000 units per year for the Egyptian market
• Distribution of imported completely-built-up (CBU)
vehicles across footprint
• After-Sales service and distribution of spare parts
• Financing options provided through Drive in Egypt
• Markets: Egypt, Iraq, Algeria, Libya
Motorcycles &
Three-Wheelers
4.3%
of FY13 Group Sales
5.2%
of FY13 Group Sales
• Distribution of motorcycles and three-wheelers
(tuk-tuks)
• Financing options provided through Mashroey
• Market: Egypt
5.3%
of FY13 Group Sales
Commercial Vehicles &
Construction Equipment
• Assembly and distribution of trucks and buses
• Bus-body manufacturing; distribution of buses
• Manufacturing and distribution of superstructures
and trailers
• Distribution of construction and farming equipment
• Markets: Egypt, Libya
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Tires
• Distribution of passenger car, van, truck, construction equipment and bus tires
• Markets: Egypt, Iraq, Libya, Algeria, Jordan
Financing Businesses
• GB Auto’s Financing Businesses offer financing in
all segments of the market
• GB Lease provides financing for commercial vehicle
and corporate lease clients
• Mashroey finances the purchase of motorcycles, tuktuks, YTO tractors and motor tricycles
• Drive offers consumer financing of passenger cars
and factoring of auto and non-auto products
• Market: Egypt
lubricants
• Distribution of Gazprom Neft-Lubricants
• Markets: Egypt
Success Story
From its beginnings as a family enterprise, today GB Auto has grown to become
a leading regional automotive producer and distributor, with six lines of business
and activities that range from manufacturing to financing.
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a portfolio of success:
Our Brands
Utilizing its proven track record and diverse product
offering, GB Auto continues to secure key brand
representations in key regional markets.
Location
Passenger Cars
Commercial Vehicles &
Construction Equipment
Motorcycles &
Three-Wheelers
Tires
Financing
Businesses
Lubricants
Egypt
this line of business distributes earth moving equipment,
road machinery and power generators in Egypt under a
distribution agreement with Volvo Construction, SDLG
and AKSA; distributes YTO tractors in Egypt; produces
buses for domestic and export markets through GB Polo
(a state-of-the-art facility in partnership with global leader
Marcopolo and using Volvo, Fuso, Iveco and JAC chassis);
and sells Great Wall pickup trucks in Libya.
In late 2013, GB Auto launched the seven-seater Karry,
which it distributes in Egypt and Algeria.
Iraq
Lubricants
GB Auto announced in January 2014 that it has entered
into an exclusive strategic alliance to distribute Gazprom
Neft-Lubricants, giving GB Auto access to a 400-450,000
ton per year market that grows at a 4-5% annual pace. The
company will aim to take the partnership to other regional
markets, possibly incorporating other lines of business
from Gazprom Neft’s downstream portfolio, following a
successful rollout in Egypt at both GB Auto-branded and
third-party points of sale.
Tires
The company and other trading businesses have agreements with a number of tire manufacturers to distribute a
wide variety of tires in five countries. In Egypt, the company distributes Lassa, Yokohama, Westlake and Diamond
Back tires while it distributes Westlake and Diamond Back
tires in Iraq. In Jordan, the company distributes Diamond
Back tires; in Libya it distributes Triangle tires; and in
Algeria it distributes Lassa, Grandstone and Goodyear
tires.
Libya
Algeria
Jordan
Passenger Cars
Motorcycles and Three-Wheelers
In Egypt, the company holds the exclusive license to assemble and distribute Hyundai and Geely passenger cars,
and import and distribute Hyundai, Mazda and Geely
passenger cars, as well as spare parts for all the brands.
GB Auto is also a leading player in the Iraqi passenger car
market, where it is the sole distributor of Hyundai passenger cars and spare parts, and in 2013 the company entered
the dynamic Libyan and Algerian passenger car markets
where it sells Geely passenger cars in joint ventures with
local partners.
In Egypt, GB Auto is the exclusive local agent and distributor of Bajaj Auto’s motorcycles and three-wheel vehicles
(often called auto-rickshaws or tuk-tuks).
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Commercial Vehicles and Construction
Equipment
GB Auto offers a wide range of commercial vehicles under
exclusive agent and distributorship agreements with Fuso
and Volvo, while the company also manufactures and
distributes semi-trailers and superstructures (i.e., oil and
chemical tankers as well as concrete mixers). In addition,
Financing Businesses
GB Capital serves as the Group’s financial arm, and
is responsible for the Financing Businesses line, which
consists of three independent companies including: GB
Lease (commercial vehicles, corporate fleets and other
asset classes), Mashroey (selling GB Auto’s Bajaj-branded
motorcycles and three-wheelers on credit terms to microfinance-eligible clients), and Drive (consumer finance for
passenger cars and factoring). The aim of GB Capital is to
develop a well-diversified and synergetic group of financial
services. To that end, GB Capital is also on the lookout for
new additions to complement its portfolio.
Success Story
Hyundai was the first international
brand that GB Auto represented;
our success in this arena has led
to a strong brand portfolio across
all business lines.
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growth, resiliency and expansion:
a regional story
Building on its strong brand portfolio and exclusive
licenses in Egypt and Iraq, GB Auto set its sights on
reproducing this success in Algeria, Libya and beyond.
Iraq
Population
31.9 mn
Nominal GDP (2013e)
US$ 238.7 bn
GDP / Capita:
US$ 3,750
Motorization / 1,000 people
77 (in 2006)
Jordan
Algeria
Population
36.9 mn
Nominal GDP (2013e)
US$ 202.4 bn
GDP / Capita:
US$ 7,500
114 (in 2010)
Population
6.2 mn
Nominal GDP
US$ 28.8 bn
GDP / Capita:
US$ 6,000
165 (in 2011)
Egypt
Libya
Population
83.6 mn
Population
6.0 mn
Nominal GDP (2013e)
US$ 270.0 bn
Nominal GDP (2013e)
US$ 70.9 bn
GDP / Capita:
US$ 2,700
GDP / Capita:
US$ 13,300
32 (in 2010)
290 (in 2007)
Success Story
Sources: International Monetary Fund, EFG Hermes Research, UNCTAD, World Bank, GB Auto company research
GB Auto first announced in 2009 that it was exploring opportunities for growth outside its home market of Egypt. In
2010, the company entered into a joint venture to distribute
Hyundai vehicles in Iraq. Proving the essential soundness
of the strategy, in 2013, Iraqi operations accounted for 31%
of GB Auto’s total revenues. Not a company to rest on its
laurels, GB Auto continued searching for additional opportunities in the region.
In 2013, the company announced that these efforts had come
to fruition, with key brand representations in the North
African markets of Algeria and Libya. Sales and after-sales
operations in the markets began in 2013; GB Auto has management control of each local venture.
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Algeria
The company entered the Algerian market in cooperation
with the Group Rahmoune, a strategic player in the Algerian
economy, with investments mainly in building materials,
basic infrastructure and the automotive business.
GB Auto entered Algeria with Geely passenger cars in 2013,
augmenting its lineup with Lassa, Grandstone and Goodyear
tires.
Libya
In Libya, GB Auto began selling Triangle-brand tires,
Geely passenger cars and Great Wall pickup trucks in 2013.
GB Auto entered the Libyan market in cooperation with
El-Bostan Holding Company, a well-established consumer
goods, retail, automotive and logistics conglomerate owned
by the Al Said family.
GB Auto has identified a cost-effective strategy to rapidly
roll-out sales and aftersales facilities in Tripoli.
Future Expansions
GB Auto is actively exploring further markets into which
it can expand, capitalizing on the region’s untapped potential and pent-up demand for real value backed by true
customer care. Management looks forward to announcing
further developments on this front going forward, with
Sub-Saharan Africa as the current focus for growth.
Under visionary leadership, GB Auto
has expanded from an Egyptian
business into a regional force. The
company’s long-standing strategy
of measured regional growth has
borne fruit with the 2013 expansion into Algeria and Libya, which
are among the most promising
markets in one of the world’s most
promising regions. GB Auto now has
a footprint in Egypt, Iraq, Algeria,
Libya and Jordan.
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diversity in action:
Business Units
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15
Business Units
Business Units
Passenger Cars
Egypt
GB Auto is the largest player in the Egyptian passenger car
market in terms of sales revenue, market share and production capacity. The company holds the exclusive license to
assemble and distribute Hyundai and Geely passenger cars,
and import and distribute Hyundai, Geely and Mazda passenger cars, as well as spare parts for all three brands.
Over the years, the company has solidified its market leadership
with a dedication to value, unparalleled service and best-inclass products. GB Auto created its “one-stop-shop” approach
to retail auto buying by vertically integrating sales, consumer
finance (through Drive, GB Auto’s consumer finance venture)
and after-sales support. Its commitment to total customer care
allows the company to offer Egypt’s car-buying market a powerful value proposition — GB Auto has positioned Hyundai cars
16
as the best value for money, and now looks to do the same with
Geely and Mazda at their unique price points.
The past several years have seen GB Auto invest in the expansion of its assembly capacity, culminating in the revamping of
its Prima facility, which it inaugurated in October 2012. The
state-of-the-art facility features latest generation quality control
systems, fully automated conveyer assembly lines, the first fully
robotic paint shop in the Middle East and North Africa, and
has a maximum annual capacity of c.60,000 units following
the plant overhaul.
After-Sales Support
With Egypt’s largest sales and after-sales network, GB
Auto has transformed the nation’s new car experience.
The company’s 3S business model promises showrooms,
services and spare parts. GB Auto’s 9 large service centers and more than 650 service bays, 25 owned showrooms
and numerous partnerships with independent automotive retailers, and a spare parts distribution channel that
stretches across the country deliver comprehensive service
to Egypt’s car market.
GB Auto’s start-to-finish customer orientation has helped
make Hyundai’s resale value the highest in Egypt. The 3S
model has helped make Hyundai cars synonymous with
positive customer care and has strengthened GB Auto’s
brand and boosted its market position across its product
offerings. The company is planning an equivalent model
to support its network of Geely and Mazda passenger cars.
Success Story
Throughout its more-than 70-year
history, GB Auto has built a strong
reputation for standing by its customers and is renowned for providing
unmatched aftersales service in
the Egyptian market. Together with
the group’s new vehicles sales, the
company’s service and parts outlets
make GB a fully integrated automotive player — a “one-stop-shop”
that provides customers with lower
ownership costs and real value for
money.
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Business Units
Business Units
Passenger Cars
Passenger Cars
Iraq
Algeria and Libya
Success Story
As its first regional expansion venture, in early 2010 GB Auto
formed a joint venture with an Iraqi company and moved
to serve the highly underserved, pent-up demand in the wartorn Iraqi market. The company did not go blindly into this
venture: At the time, Iraq was a potentially volatile market,
more so than today; but entrepreneurship is at its heart about
taking considered risks — and the payoff that accompanies
success is worth the effort.
Today, GB Auto is a leading player in the Iraqi passenger
car market, where it is the sole distributor of Hyundai
passenger cars and spare parts. The company has begun
building Iraq’s leading after-sales service franchise based on
the Egyptian model, with 4 service centers now open in the
country in Baghdad, Irbil, Suleimaniyya and Basra, with
additional centers to follow in 2014.
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GB Auto has long experience with
Hyundai, for which it is the exclusive
assembler, importer and distributor
in Egypt, so it was logical to look to
Hyundai when the time had come
to begin expanding in earnest. The
expansion of our Hyundai representation into Iraq was a measured
risk at the time, one that has been
a true success.
Success Story
Following up on the success of the expansion to Iraq, in
early 2013 GB Auto announced that it would be pushing its
regional expansion drive forward with moves in Algeria and
Libya through new and existing brand representations.
Beginning in the third quarter of 2013, operations for Geelybranded passenger cars began in the two key North African
markets via local ventures.
The company plans to introduce an after-sales network —
based on the highly-successful models in Egypt and Iraq — in
both countries going forward.
The Middle East and Africa is one of
the most dynamic growth markets
in the world, and the potential opportunities for a customer-focused
model like the one GB Auto has
perfected are boundless. GB Auto
followed up on its successful expansion into the Iraqi passenger
car market with its 2013 expansion
into Algeria and Libya.
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Business Units
Business Units
Motorcycles &
Three-Wheelers
Success Story
GB Auto is Egypt’s exclusive assembler and distributor of
motorcycles and three-wheelers from Bajaj, the largest global
manufacturer of three-wheelers, often known as auto-rickshaws or tuk-tuks. GB Auto imports Semi Knocked Down
(SKD) units from the Indian producer and assembles and finishes the vehicles locally at the company’s Sixth of October
City Industrial Zone factory. Since it first began importing
and selling three-wheelers in 1999, the company has been the
country’s market leader for the popular vehicles, in part due
to its efforts at providing quality, low-cost after-sales service
to this segment’s price-conscious consumers, and later as the
company introduced financing for this line via Mashroey.
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After-Sales Support
GB Auto provides its motorcycle and three-wheeler customers the same comprehensive service that it offers its car
buyers, and the group’s 3S business model — showrooms,
service and spare parts — extends to its motorcycles and
three-wheelers business as well.
Indeed, After-Sales is a small but important component of
this business unit and a key differentiator for GB Auto in
the market, given that the consumers attracted to two- and
three-wheelers place strong emphasis on the availability of spare parts and service centers. To capitalize on this
‘built-in’ demand, the authorized service center network is
continuously expanding to reach out to customers, thereby
encouraging them to return to the GB Auto network for
maintenance, spare parts and repairs.
GB Auto’s commitment to total care for customers of
this key segment is evident in its nationwide network of
21 owned-retail showrooms including 1 after-sales service
center, 21 GB Auto-owned spare parts outlets and a network of 120 authorized dealers, as well as 60 authorized
service centers across Egypt.
One of the more successful expansions that the company has made
was the addition of Bajaj-branded
motorcycles and three-wheelers to its
product line-up. These vehicles are designed to appeal to a price-conscious
consumer group that has responded
well to GB Auto’s customer-centric
business model and rewarded the
company with a loyalty that sees us
maintain the lion’s share of this small
but key market.
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Business Units
Business Units
Commercial Vehicles
& Construction
Equipment
Success Story
GB Auto’s Commercial Vehicles business unit distributes
imported and locally assembled trucks and buses in Egypt.
The division assembles Fuso and Volvo buses as well as
Fuso trucks at plants in Sadat and Suez (home to the new
GB Polo factory) and distributes Volvo heavy trucks. GB
Auto also manufactures and distributes semi-trailers and
super-structures such as oil and chemical tankers and concrete mixers under its Commercial Vehicles line.
GB Auto’s Construction Equipment business unit includes earth moving equipment, road machinery and
power generators distributed in Egypt under distribution
agreements with Volvo Construction, SDLG and AKSA.
The group markets its heavy-duty equipment line to
public and governmental customers, as well as to private
sector companies.
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The company’s bus segment produces a range of transportation
solutions, including maxi buses, or coaches, with a maximum
capacity of 55 passengers; midi buses (30-38 seats); mini buses
(24-29 seats); and, most recently, micro buses (17 seats). GB
Auto’s Commercial Vehicles line markets heavy-, medium- and
lightweight trucks for fleet operators, contractors, large industrial operators and government agencies throughout Egypt.
Karry micro-micro range vehicles in Egypt and Algeria.
In addition, GB Auto has signed an agreement with JAC to
source 4 and 7.5 toner chassis on which a new generation of
GB Polo designed bodies will be installed to serve the growing
bus segment. Together, these new products are expected to be
significant drivers of growth for this line of business.
In late 2012, the company secured brand representation for
YTO tractors in Egypt. GB Auto also secured brand representation for Great Wall pickup trucks in Libya, which it
began selling in 2013.
The Commercial Vehicles & Construction Equipment business
unit is supported by a robust After-Sales framework that extends
GB Auto’s total care model to customers of this key LOB.
Most recently, in late 2013, in an effort to increase the product
offering of the Commercial Vehicles & Construction Equipment
line of business, GB Auto signed an agreement to distribute
After-Sales Support
This business unit offers GB Auto customers throughout Egypt
a nationwide network of owned-retail showrooms including 6
after-sales service centers.
The Commercial Vehicles unit, more
than any other GB Auto operation,
demonstrates the group’s capabilities
as a manufacturer. With the exception
of the chassis, the company designs
and manufactures complete buses
at its facilities. At these production
facilities, GB Auto produces the Fuso
RP coach, the Fuso Cruiser mini and
medium-sized buses, and Volvo model
tourism buses and will introduce the
new generation Marcopolo bus range
in 2014.
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Business Units
Business Units
Tires
Financing
Businesses
Success Story
GB Auto established GB Capital as the sub-holding entity
serving as its financial arm, which consists of three distinct and
independent companies. The aim of GB Capital is to develop a
well-diversified and synergetic group of financial services, and
to-date, the three companies have out-performed expectations
and feature solid, aggressive growth strategies.
Overall, the Financing Businesses line is growing steadily and is
strictly governed by robust credit policies specifically developed
for each industry. The companies’ credit approval and disbursement mechanisms are well-advanced and adhere to international
best practices. Furthermore, asset quality and collections — being
the backbone for the success of any financial institution — are
closely monitored, well-maintained and controlled within each
company, with results that match and exceed industry norms.
Going forward, GB Capital will focus on bringing all three businesses to maturity and is on the lookout for new additions to
complement its portfolio.
Success Story
GB Auto has been among Egypt’s leading tire dealers for more
than 50 years and distributes passenger car, van, bus, construction equipment and light-truck, truck and bus-truck tires under
license with Turkey’s Lassa, Japan’s Yokohama, China’s
Westlake, Triangle, Diamond Back, Grandstone and Goodyear.
In early 2013, this business unit announced that it had successfully concluded agreements that have seen it expand
from Egypt to cover Algeria, Iraq, Jordan, and Libya, as
well as diversify the company’s product offerings in Egypt.
Growth has been vital to GB Auto’s
rise to regional prominence, and
our Tires line of business has grown
from a small segment to having operations in five countries, the most
of any of our other lines of business.
GB Lease
GB Lease is the first financing company that GB Auto established. Initially established to provide finance to GB Auto’s
commercial vehicles and corporate fleet clients, GB Lease has
since diversified its field of operations into other asset classes. It
is now far into the growth phase, is well established, and is one
of the top 10 leasing institutions in Egypt.
GB Lease provides business-to-business financial leasing solutions. It is non-exclusive to GB Auto, and caters to a diversified
client base ranging from top tier multinationals, to local corporations of various scales, as well as small and medium enterprises.
The company fully complies with all regulations and operates
under the auspices of the Egyptian Financial Supervisory
Authority (EFSA).
Mashroey
GB Auto’s second financing venture was Mashroey, which
24
Egypt’s financial sector is both
fragmented and highly-competitive,
making the out-sized success of the
three GB Capital businesses even
more impressive.
offers microfinance services on credit terms to eligible
consumers. The company is at the end of its startup phase and
is growing rapidly all across Egypt, with a network coverage of
around 65 branches.
Mashroey started out selling GB Auto’s Bajaj-branded motorcycles and three-wheelers on credit terms. While these vehicles
continue to constitute the bulk of Mashroey’s portfolio — accounting for c. 80% of its business — the company has since
added motor tricycles (a non-GB Auto product) and GB Auto’s
YTO agricultural tractors, minivans, and preowned tuk-tuks to
its suite of products for which it offers micro financing. It will
also soon venture into other product lines outside the automotive sector to further diversify its portfolio—all on credit basis.
Drive
GB Auto’s most recent financing business is Drive, a consumer
finance company focusing on offering auto loans to end consumers, as well as corporate factoring services to a specific range
of companies.
Drive is still in the start-up phase of its development and is growing steadily. Since its launch in 3Q12, the company has made
remarkable strides in market presence; achieving operational
breakeven and carving a place for itself in the very competitive
automotive financing sector within its first year of operations.
Drive’s initial strategy was to focus on financing sales of GB
Auto’s Hyundai and Geely passenger cars out of GB Auto’s
showrooms. Having successfully completed this phase ahead
of schedule, the company has advanced its operational strategy
and is expanding to serve customers at GB Auto’s independent
dealer network, as well as incorporating the finance of consumer purchases of brands that are not exclusive to GB Auto. The
company operates under the auspices of the Egyptian Financial.
Supervisory Authority (EFSA).
25
Hard at Work:
Assembly and
Manufacturing
With a vision to empower the auto market in Egypt, GB Auto
assembly and manufacturing operations represented a
transitional phase in the history of the company.
A Sustainable Future
Success Story
Assembly
GB Auto’s assembly operations include production of passenger
cars and commercial vehicles at three plants in the Greater Cairo
Area. At these plants, assembly largely refers to Completely
Knocked Down (CKD) vehicles imported as kits from leading
international brands including Hyundai and Geely that are assembled with a legally mandated percentage of local content.
Prima Factory
At the Prima plant, GB Auto assembles Hyundai and Geely
passenger cars and Mitsubishi Canter cabins from imported
CKD kits as well as locally sourced components. The plant —
which covers almost 58,000 square meters — was established
in 1994 and, by February 2014, had produced more than 240,
000 passenger cars. In September 2012, GB Auto completed a
26
GB Auto factories rely on strictly
Egyptian labor, providing a strong
source of employment and further
support for the Egyptian economy.
As a company with a keen sense of
social responsibility, GB Auto is determined to do its part, providing jobs
while offering services that span the
spectrum of the automotive industry.
significant investment, allowing production to grow to include
our new Geely models while at the same time modernizing
certain aspects of the assembly process.
Today, Prima is truly state-of-the-art — with fully-automated
conveyer systems, robots for the painting, and more. Our
manufacturing workforce of 1,200 staff works two shifts in
the course of an 18-hour day and can assemble as many as 261
units daily, while our maximum capacity is over 75,000 units
per year. After receiving kits from the suppliers, they are put
through a rigorous process — including assembly, painting,
application of trim, quality checks and pre-delivery inspection
— before being delivered to the finished goods warehouse for
distribution to dealers and customers.
Manufacturing
For the Commercial Vehicles and Construction Equipment
unit, production extends beyond assembly to include design
and manufacture of complete buses, semi-trailers and superstructures — with the exception of the chassis — at three plants
in the Greater Cairo Area as well as GB Polo facilities in Suez.
GB Polo
GB Polo, the company’s joint-venture with global giant
Marcopolo, has completed the build-out of a 5,000 unit-per
year capacity (potential capacity, based on two shifts daily)
state-of-the-art bus body manufacturing facility targeting
local and export markets. GB Polo produces buses covering
all applications (micro, mini, midi, city, school / labor, intercity and coach) and the facility utilizes almost 285,000 square
meters of land.
GB Polo was conceived as a move to capture export opportunities in bus field manufacturing by utilizing GB Auto’s
quality standards and relatively low-cost, highly-trained
workforce in combination with Marcopolo’s 65-year history of successfully developing technological and innovative
concepts for full transportation solutions and setups in key
markets worldwide. The addition of the Iveco chassis has
also proved to be a further boost to the strength of GB Auto’s
Bus Business.
In addition to providing a vast pool of
manufacturing know-how and expertise from the combined resources of
GB Auto and Marcopolo, the GB Polo
facility also utilizes renewable energy
sources to ensure environmentally
friendly operations (Green Facility).
From recycled water and reduced
byproducts and air contamination
throughout the production process,
to natural gas-powered ovens with
desert development and forestry in
the area inside and surrounding the
facility, GB Polo is a facility designed
with the environmental future of
Egypt in mind.
27
investing in tomorrow:
GB Academy
As a forward-looking company that is never satisfied
with the status quo, GB Auto — through GB Academy
— seeks to further the successes of today by providing
the training for tomorrow.
Success Story
The 2012 launch of the GB Academy in partnership with Canada’s
Centennial College has enhanced
organizational efficiency and raised
quality standards, benefitting both
customers and employees of GB Auto.
GB Auto believes that knowledge is the key pillar of success, serving as a vital strategic resource for any business. As
such, GB Auto is pleased to have opened the GB Academy
in partnership with Centennial College. Instruction has
begun at the purpose-built campus in Abu Rawash, with
sixteen instructors delivering training to the c.5,000 corporate employees of GB Auto as well as the extensive network
of authorized dealers in the Passenger Cars, Motorcycles
& Three-Wheelers, Commercial Vehicles & Construction
Equipment, and Tires business units.
Training encompasses both manufacturing and blue-collar
technical skills in our five lab areas as well as managerial,
business and functional skills in our 14 traditional classroom
settings. Along with a complete assessment center, we
conduct training both in the field and remotely through
28
classroom technology to our regional businesses. Regular
Train-the-Trainer events are supported by partners such as
Volvo, Bajaj, Hyundai and Centennial College.
The Academy will deliver up to 250 training days per year
on campus as well as field training, with the capacity to train
200-250 employees a day or in excess of 1,000 employees per
week. It also provides facilitation for talent management and
organizational development planning, as well as supporting
30 young Egyptians in a partnership with local technical
schools to provide a comprehensive apprenticeship program
along with our traditional apprenticeship program.
Training for Tomorrow
GB Auto brings trainees a blend of business and technical
training catering to the needs of the diverse employees at
the company. Technical employees are offered product-specific training as well as customer service skills, and business
employees acquire basic business and people management
skills.
Additionally, a recent pilot of the Driver’s Safety Training
for corporate drivers highlighted the ongoing need for specific and targeted training as well as skills upgrading training for all employee populations.
Training programs launched:
• Customer Service Excellence for salespeople, aftersales
teams and corporate groups
• Drive for Quality for manufacturing groups
• Core Principles of People Management for managers
and supervisors
• HMC, Geely and Citi product launches and technical training
• GB Auto Technicians Apprenticeship Program
Expansion of the GB Academy Portal
A series of updates and improvements have recently taken
place to provide GB Auto employees with better access to
developments at GB Academy. Employees will be able to
preview program descriptions and course schedules on an
informative portal page, and we are excited to have piloted
the first online testing for training participants of the Personal
Excellence workshops.
29
a boundless future:
open road ahead
GB Auto sees its history of growth, resilience,
expansion and success as merely the first chapter in
an open-ended story.
Success Story
Through a three-axis strategy designed to maximize longterm growth — expanding new ventures, growing our product portfolio and targeting high-growth markets — GB Auto
has its sights set on becoming the largest automotive products
distributor in Africa and the Middle East.
In the coming year, the company seeks to develop newly
established ventures in Libya and Algeria, with the support
of strong sustainable growth from Egypt and Iraq; expand
brand representation and product portfolio and expand product reach across all countries of operations; and continue to
expand in new high-growth markets with a focus on SubSaharan Africa as the next growth phase.
30
From its beginnings as a family-trading business through its growth and
expansion during tough economic
times, the road to success for GB
Auto is an open-book journey that
has only just begun.
Egypt
Libya
• Maintain leadership in passenger car market
• Fill in product gaps
• Capitalize on expansions already made and inprogress in aftersales
• Support sales through financing options
• Penetrate the passenger car market
• Create after-sales network based on the successful
Egyptian model
• Potential expansion of GB Auto’s product range
Iraq
Algeria
Africa
• Given growth of the economy and pent-up demand,
current unit sales are considered the “tip of the iceberg”
• Continue to expand after-sales network to support
sales, solidify market presence and increase profitability
• Penetrate the passenger car market
• Augment passenger car sales with a wide range of
tire brands
• Enter select Sub-Saharan African markets with
a strong product range that addresses pent-up
demand in traditionally under-served industry
segments
31
contact US
Head Office
Cairo-Alex Desert Road, Km 28 Industrial Zone
Abu Rawash, Giza, Egypt
Tel: +202 35391201
Fax: +202 35391198
ghabbourauto.com
32
www.ghabbourauto.com

An EgyptiAn SuccESS Story

Transcription

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