Powertech IST Energy

Source: Energy Digital

Date :08/07/2008 10:15:34

Enterprise development

Written by Rebecca Waters and Produced by Alex Smith

Powertech IST Energy, a division of Powertech SA (Pty) Ltd, was founded in 1989, and is a dynamic company with a long track record in the electricity supply industry, providing energy and power quality management support services to customers including General Electric, Total and AngloGold.

With such an impressive list of clients, it is no surprise that the company has scooped major awards for the effectiveness of its business, with services that increase the cost effectiveness of raw material consuming equipment. This efficiency is driven by the company’s team of highly skilled employees, headed by Managing Director Joseph Mashao.

Mashao joined IST Energy in May 2008, having previously worked for Eskom, the South African public utility. Because the business is active in the utility and electrical industry, he says that his experience has made him fit into the company very easily, “leading teams to provide solutions that are in line with the utility business.”

The Powertech IST Group

Together with its sister companies (Powertech IST Telecom, Powertech IST Otokon, Powertech IST Industrial, Powertech IST Data and Powertech IST Dynamics), Powertech IST Energy is part of the IST Group, which was founded in Pretoria in 1980. The group is active in the nuclear, energy, telecommunications and defence industries, applying its technologies across a range of markets in Africa and internationally.

In 2007, the IST Group was bought by Powertech, a subsidiary of Altron Communications Equipment Ltd, for R505million. Following the acquisition, finalized in September 2007, the Group was renamed Powertech SA, trading as Powertech IST Group.

Powertech IST Energy is part of the electronics stream of Powertech IST - the other being the mechanical stream, which is constituted of Powertech IST Energy, Powertech IST Telecom, Powertech IST Data and Powertech IST Otokon.

The energy division’s core business is the design, development, integration and supply of world-class measurement, control and protection equipment, services and solutions. Its main market is the electricity supply industry, with a focus on power system protection and power systems automation systems.

10-kV key substation

At present, the business is moving into 10-kV key substation solutions, and provides full development and commissioning of substations.

“We are involved in a medium-voltage substation project at the present moment with some of our municipal customers in South Africa,” says Mashao, explaining that Powertech IST Energy is trying to penetrate the South African market.

The company has just put in a bid for a 10-kV key substation project in Botswana and is also evaluating an opportunity for liquid natural gas in Zambia, which could be one of the key focuses in the medium to long-term. In the past, Powertech IST Energy has also worked in Swaziland and Mauritius.

Mashao explains that Powertech IST Energy has its roots firmly established in South Africa and its future growth and expansion lies in the southern market region, “We want to be a core energy player in southern Africa.”

Embracing BEE

The company operates a strong Black Economic Empowerment (BEE) plan, which includes widening its services to the local community through local community investment programmes, offering recruitment, educational financial aid, and learning and development.

“We take kids from disadvantaged communities and actually pay for their tuition from school from Grade 8 until they complete their Grade 12. If they have interest in terms of furthering their studies, for instance university, we actually assist them through that process. That is part of ensuring we can actually create enough passion for IST as a business and as a corporate identity in the South African economy,” Mashao explains.

The company also has strict policies for its employees. Powertech IST Energy currently employs 52 highly-skilled employees who have a long track record in the industry. These schemes will allow them to continually develop skills for them to add value at different levels of the business.

Alongside this, as part of the company’s BEE plan, Powertech IST Energy encourages the enterprise development of its subcontractors, while still providing key solutions and services to the business.

“Where we’ve got big projects we actually try to bring in upcoming businesses, to have them develop in specific areas including construction and civil works for 10-kV key substations,” Mashao says, citing Vithale as an example. “They were actually part of our production process and we believed that if we actually helped them formulate and actually become a separate entity they will actually benefit from exploring different opportunities,” he explains.

A “CORPORATE CITIZEN”

ISO 14001 and ISO 9001 registered, Powertech IST Energy is highly concerned about the impact its activities have on the environment. “I think that because the customers that we serve require for us to be a good corporate citizen and a good service provider, it is imperative for us to understand how our activities will actually have an impact on the environment and how we can actually mitigate those impacts we identify,” Mashao explains.

This is one of the preferential issues considered when working with sub-contractors, together with a quality-driven approach. “We still have to make sure that their quality is in accordance with the standards that we have actually set,” says Mashao.

INNOVATION, SPEED & TENACITY

This approach has obviously worked. Over the past six years, the business has seen an average growth of 14 percent and accounts for 25 percent of the Group’s revenue; this year it will be looking to improve its profitability even more. In the first two months of this financial year, revenue has risen from R75million to R150million.

While Mashao regards this is an achievement, he explains that it is also a burden, “If you are starting from a higher base it means that the expectation on us as a division, in terms of the whole group structure, is that we need to continuously improve on the high base that we have always operated on.”

Despite this, it is driven by the qualities inherited from its parent company: innovation, speed and tenacity. “Those elements filter into the activities that each of the divisions perform,” Mashao explains. “And in terms of Powertech IST Energy as a division, it is driven by passion for our customer requirements.”

These four elements allow the company to put together quality-driven and cost-effective solutions for its customers which also continue to generate repeat business. The future only holds growth for Powertech IST Energy and it will be exciting to see.

Click here to view the corporate brochure on Powertech