SUPPLIER DEVELOPMENT

SUPPLIER DEVELOPMENT

Overview

Supplier development directly affects the Group’s overall profitability and improves the total added value from the supplier. We are therefore continuously interested in making significant investments in business development, market opportunities, equipment, manpower and/or other financing needs that directly benefit our supply chain.

PEM Finishing – 2017

Established in 2006, PEM Finishing is the brainchild of Patrick Avontuur and Ernest Maasdorp, who wanted to become financially independent and to provide employment for those from previously disadvantaged communities in South Africa. PEM Finishing’s core business includes the insertion and bagging of magazines, as well as the placement of specific paged inserts or samples. Their vision is to become the best mail house, within the domain in which they operate, through their continued insertion of value-added promotional printed products for Paarl Media Cape, Novus Holding’s flagship printing plant.
In 2017, Novus Holdings made significant financial contributions to PEM Finishing through the rental space they occupy at one of the Group’s plants and through short-payment terms.

Rodco Finishing – 2017

Established in June 2012, Rodco Finishing’s vision was and is still to become the preferred supplier of hand-finishing services to Novus Holdings, while simultaneously creating employment and empowering staff with development opportunities. Their scope of works includes the delivery of all handwork for magazines and commercial print jobs (from insertions to tip-ins) while providing a professional service that is managed by a dynamic team.
During 2017, Novus Holdings made significant financial contributions to Rodco Finishing through the rental space they occupy at one of the Group’s plants and through short-payment terms.

Van’s Bookbinders – 2017

Based in Epping Industria, Van’s Bookbinders is a 100% black-owned bookbinding and print-finishing company that was originally established in 2001. Owner Ivan van Oudtshoorn, who was a Nasionale Pers employee in 1975, was given the opportunity to start his own hand-binding division at Paarl Print in 2000. Van’s Bookbinders, which completes all its binding jobs by hand, started purchasing second-hand machinery from other factories.
In 2017, the company was able to invest in a Kolbus hard-case bookbinding machine due to an interest-free loan from Novus Holdings. As a result of the Group’s investment, Van’s Bookbinders has seen an increased volume of work. Their vision is to become one of South Africa’s largest independently owned black-empowered bookbinders and to develop long-standing mutually beneficial client relationships, through the provision of the following high-quality services: thread-sewn books with soft covers, perfect binding, hard-case binding, luxury leather-bound books, the repair and restoration of old books, slipcases and boxes.

ENTERPRISE DEVELOPMENT

ENTERPRISE DEVELOPMENT

OVERVIEW

Through this form of development, we assist relevant SMMEs that are not part of the Novus Holdings supply chain by providing financial investments and other solutions required for them to operate successfully. The end-goal is that in time, these beneficiaries then become valuable members of our Group’s supply chain.

Songo Africa – 2017

Two passionate young entrepreneurs, Nomcebo Nhlabathi and Sanele Sibandze, had the idea of opening a clothing and promotional gifts company in their home province of KwaZulu-Natal and so Songo Africa was born in 2004. The name is derived from the Nguni word “Songo” which means “adding flavour”, and the company has a vision that includes producing time-relevant and impactful promotional elements that build a strong brand presence for their clients. The company’s product line includes promotional gifts, promotional support elements, print production and design, as well as consumer market research.
In 2017, Novus Holdings’ contribution to Songo Africa was in the form of an interest-free loan to help stabilise their cash flow and expand their business.

Drinks Dispense Service (DDS) – 2017

A leading provider of draught beverage and fountain services, Drinks Dispense Services (DDS) was founded in 1995 when a Johannesburg division of SAB took the decision to outsource its Draught Beer Servicing Unit. This owner-managed business has grown over the years servicing in excess of 20 000 pubs, restaurants and retail outlets throughout Africa. While DDS is still based in Johannesburg, additional full-service and satellite offices can be found around the country and its footprint on the continent extends to branches in Botswana, Mozambique, and Malawi. The company offers specialist dispensing services and products, refrigeration, installation, sanitation and maintenance of fridge and draught-related equipment for a broad client base.
During 2017, Novus Holdings provided DDS with an interest-free loan, which has helped them to buy their own vehicles rather than leasing them out.

Inyosi Empowerment – 2017

Initially known as the Cadiz Enterprise Development Investment, Inyosi Empowerment was established following a rebrand and relaunch in 2016. It is a specialist fund that provides finance, in the form of loan capital at affordable interest rates, and ancillary support to black-owned businesses and beneficiaries which are required to have a minimum operational track record of between three and five years, be 51% black-owned and show an annual turnover of less than R50 million. Among Inyozi Empowerment’s other achievements is the fact that the fund has supported over 41 000 entrepreneurs since inception.

In 2017, Novus Holdings invested R3 million in Inyosi Empowerment, which in turn has helped the fund invest in the following SMMEs:

• Trust for Urban Housing Finance (TUHF) (Pty) Ltd
• Tedcor Management (Pty) Ltd
• SA Taxi Finance Solutions (Pty) Ltd
• Small Enterprise Foundation (SEF) (NFP)
• Rand Trust Financiers (Pty) Ltd
• Darchem (Pty) Ltd
• The Clothing Bank (NFP)