Energize Adapting to tough economic times
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Adapting to tough economic times

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In the face of tough economic conditions in South Africa’s construction industry, Roshqott continues to be a leading player in the energy sector. The company attributes this success to its focus on its six-point plan.

The tough economic conditions which continue to plague South Africa’s construction industry pressurise margins, depress revenues and result in fewer projects. The market has shrunk to its lowest levels, last seen in 1987 to 1991. The last few years have seen a major decline in the capitalisation value and financial performance of large, listed construction companies. In some instances, as much as 90% of their value has been corroded, leading to closures or companies being placed under business rescue.

Marqott, Roshqott’s founding company was established in 1987. From lessons learnt in the past, Roshqott has been able to face the brunt of recent market conditions to surge ahead as a leading player in the energy sector.

Roshqott’s six-point plan

The company identified six things it had to get right:

Define upfront a clear end point and transformation plan

This required a qualitative and quantitative analysis of the company’s physical, financial and human resources. It also analysed the strengths and weaknesses of Roshqott’s management and organisational structure. The objective of these analysis was to compare and contrast past successes and current concerns to that of the Roshqott’s capabilities in order to establish the company’s future transformation plan.

Roshqott recognised the urgent need to adapt to market’s changing conditions and looming market challenges. Following internal analysis of its competitive levers, the company concluded that, while being competitively well-positioned through its brand recognition, technical and business know-how, built over many years, it was strategically weak in terms of its ownership and capital structure. A strategy mix introducing new business partners and associates has elevated the company to a B-BBEE level 1 and a CIBD grading 8EP, 7CE, 7GB.

Get the right structure and use piloting technologies and ideas

The company is pleased to announce the formation of Roshqott’s first BEE accredited engineering franchisee. Roshqott (RES) in its current business format operates as an engineering, procurement, construction and management company (EPC). The restructured model required the company’s EP competence to be transferred to a newly-formed company, Roshqott Power Enterprises (RPE).

Going forward, the newly formed company will act as the franchisor, with the restructured RES, the franchisee, trading as the group’s construction vehicle and as the main contracting entity to customers under license (franchise agreement) to RPE.

Get all stakeholders to “buy-in”

The “buy-in” by all main stakeholders was of critical importance and helped to achieve Roshqott’s restructuring and recent successes.

Concentrate on core business and heighten the company’s value proposition

The company has pared down its product and services offering to concentrate on core business within the HV/MV transmission and distribution networks. It will shortly announce Roshqott’s plans to expand the engineering franchisee concept into the manufacturing of unique engineered solutions for the renewable and large industrial markets.

Employees’ empowerment, training and skills development

Roshqott chooses speed and focus as an essential nexus of its business model, so the company’s fast responsiveness and decision-making processes are crucial to its success. It is therefore necessary to fully empower managers and sub-managers, through the creation of standard policies, to carry out and implement routine, repetitive and at times sensitive decisions, as well as ongoing training and skills development programmes for new recruits. The creation of policies which guide and pre-authorise the decisions and actions of operating staff is essential for controlling and coordinating ongoing operations which produce consistent results in accordance with the company’s strategic objectives.

Prudent financial and business management strategies  

These strategies are generally concentrated around Roshqott’s intended competitive survival in a very tough market. They are based on a core idea of how Roshqott could best compete in the marketplace. These strategies have resulted in low-cost high-quality products, product service differentiation, environment and safety as well as market focus approaches.

These six points not only contributed to Roshqott being able to endure very tough economic times but have also delivered strong results, placing Roshqott on a very competitive and financially strong footing.

The importance of the sector is so overwhelmingly high that the company must believe and stand firm in its convictions that notwithstanding the ongoing market turbulence and perceptions of “doom and gloom”, solutions must be found to overcome the current energy situation. Any other result would be disastrous for the country’s economy and socio-economic targets.

Roshqott therefore remains committed to seeing South Africa through its current energy crisis and will remain “open for business” as it continues to lead the way into powering Africa with clean and efficient energy through its specialist range of products and services, including:

  • Turnkey technology and innovative solutions for MV/HV substations (EPC)
  • Renewable energy projects
  • HV/MV innovative systems solution and integration
  • Power networks maintenance services
  • Contact Rui Marques, Roshqott, Tel 082 553-3670, rui.marques@roshqott.co.za



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