Durban-based Majozi Brothers Construction has joined forces with tool hire and sales company Hire-It to establish a new Level 2 broad-based black economic-empowerment (BBBEE) joint venture (JV) company – Majozi Bros Tool Hire; Sales.
The new JV, which is 51% owned by Majozi Brothers and 49% owned by Hire-It, is the first black-owned business of its kind in KwaZulu-Natal.
Commenting on the partnership, Majozi Brothers founder and project manager Simphiwe Majozi notes that the two companies had worked together for nearly five years before discussing a JV in mid-2016.
“We began investigating a potential joint venture given the synergies between our operations. Majozi Brothers Construction is ideally placed on the ground to source hire business. Hire-It has the infrastructure in place and plenty of experience when it comes to effectively running a tool hire business. The benefits of working together were clear,” says Majozi.
Majozi Brothers Construction co-owner Sihle Ndlela believes the new JV has entered an untapped market with only a few large players.
“Every established construction business needs tools to operate efficiently. It makes business sense to hire tools rather than buy. Tools are expensive, they depreciate in value and need to be continuously maintained. Companies spend hundreds of thousands monthly on tool hire, so there will always be a demand for a tool hire company that provides professional and reliable service and a good customer experience,” says Ndela.
He adds that, given the JV’s BBBEE rating, Majozi Bros Tool Hire & Sales will be able to assist commercial customers in reaching their supplier targets. “However, we also realise that it is not enough to have an excellent BBBEE rating, we also need to make sure that we deliver quality products and service to keep our customers happy for the long term,” he says.
In terms of after-sales support, Majozi Bros Tool Hire & Sales has a fleet of bakkies that services specific nodes in the province, and will be able to tend to tool breakdowns rapidly.
“We will have spare machines available to swap out breakdowns, so that downtime is kept to an absolute minimum,” notes Ndela.
The JV partners plan to grow the company aggressively in the KwaZulu-Natal commercial construction sector by developing relationships with big construction companies and hiring tools to them on a long-term contract basis at a market related cost. Having put in place the right systems and developed sufficient capacity to handle growth, they plan to roll out the company nationally in the near future.
MAJOZI BROTHERS CONSTRUCTION
Founded by Ndlela and Majozi, who are both under the age of 30, Majozi Brothers Construction started out as a small, family-owned ceiling repair business that serviced the township residential building market. It was relaunched as a construction company in 2008 by Majozi, who was just 21 at the time.
Together, Ndlela and Majozi have developed their company to the point where it is now a JV partner with WBHO Construction in the multimillion-rand Gateway expansion project, which is expected to transform the province’s iconic mall into one of the largest shopping centres in South Africa.
Majozi Brothers Construction has completed various projects ranging from high-end residential developments within estates such as Zimbali, Cotswold Downs and Westhills, to office blocks and residential houses across the province.
The company comprises Majozi Brothers Construction, which specialises in general building; Majozi Brothers Civils and Earthworks, which specialises in civil engineering and commercial construction; and the Majozi Brothers Property Fund, which invests in residential developments. Majozi Bros Tool Hire & Sales will be the fourth division.
Hire-It is a third-generation family business that was launched 36 years ago by Doug Fraser. Joined by his son Richard Fraser, he has built the business into a hire, sale and repair specialist of small plant and power tools that include products by Honda, Bosch, Makita, Yamaha and Husqvarna Construction. Hire-It has branches in both Pinetown and Springfield Park, in KwaZulu-Natal.
EDITED BY: Creamer Media Reporter