masana individual feature
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FEATUR
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M A S A N A
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South Africa Magazine profiles Masana Petroleum Solutions, the first black-owned and managed energy
company of its kind in South Africa.By Ian Armitage
B lack empowerment joint venture company Masana
Petroleum Solutions is a unique symbol of transformation and growth.
It was born out of the belief that BEE is about “creating a sustainable, diverse and competitive economic climate that refl ects the cultural constitution of South Africa.”
That was 2005.By 2008 it looked impossible
- the dream shattered. But Masana wasn’t about
to roll over.Today this wholesaler
of petroleum products supplies the bulk needs of large corporate clients, chiefl y meeting their diesel requirements, though its portfolio extends to other fuels - bitumen and gases.
It supplies more than 800Ml of petroleum products per annum.
What it has achieved is remarkable.
“Masana was born through the acquisition of the business-to-business division of BP South Africa and has been operating in this space for the past seven years, since May 2005,” says Head of Sales Trevor Elie. “Our customers include strategic partners like Imperial, BHP Billiton, De Beers, Transnet, Unitrans and Eskom and we market and sell BP branded oils
and fuels to the business-to-business commercial, industrial, mining and construction sector.”
That deal was the fi rst time a major oil company had taken a minority share in an empowerment venture. It was a real milestone. A true partnership was born.
“The business is a partnership between BP Southern Africa, the Mineworkers Investment Company (MIC), the Women’s Development Business Investment Holdings (WDB) and staff,” says Elie. “We boast a level 2 BBBEE rating and is constantly working towards achieving level 1 status.”
The company is 45 percent owned by BP and
Masana Petroleum Solutions FOCUS ENERGY
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Our customers include
strategic partners
like Imperial, BHP Billiton, De Beers, Transnet,
Unitrans and Eskom
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35 percent co-owned by the MIC and WDB Investment Holdings.
Management and staff own the remaining 20 percent.Masana is a real phoenix from the fl ames story.
“In 2008/2009 the business went through absolute turmoil and the write down of R120 million bad debts almost caused the demise of the Masana business – it is due to the tenacity and resilience of the Masana people that a successful turnaround has been achieved in a such a short period of time.
“2010 and 2011 were hugely successful years,” Elie says.
Masana has really gotten its affairs in order and times have been so good that it has even managed to pay off all its long-term debt obligations.
The whole business has been given a new lease of life.
“It was about greater rigour around risk management, a focussed approach on quality customers, clear plans on signifi cant cash fl ow improvements and the optimisation of resources,” says Elie. “We don’t have refi neries or service stations or boast of a prominent brand. We are a people’s organisation. Our key competency lies in how we manage the relationships with our clients.”
He says that becoming best in class in managing customer relationships is a strategic priority for Masana.
“There are specifi c behaviours that contribute to success in business-to-business relationships,” Elie explains. “”It is therefore critical to establish a relationship advantage which has a solid relationship foundation necessary for success. Customers see value from suppliers who demonstrate specifi c competencies in their relationships in the
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Masana Petroleum Solutions FOCUS ENERGY
business-to-business world. It is these customers that reward their high competency suppliers with their business. And it is for this reason why Masana is striving to operate in the rare air of best in class suppliers.”
Growth is a key strategic priority. During 2011 Masana pursued its growth strategy by identifying the sectors with the greatest opportunities and by conducting a comprehensive customer needs analysis.
“We completed a Market Development Plan which outlined the South African petroleum market in terms of geography, product mix and target industries and this supported well in setting realistic growth targets,” Elie says. “Furthermore, a pipeline of potential clients, ranked by propensity to switch to Masana has been developed to provide the necessary traction in 2012 and beyond. The new business volume target that has been set for 2012 is tracking very well at just over 50 percent during the fi rst half of the year and with the current plans in place it is clear that the target will be achieved at year end.”
I’m sure we’re all watching Masana with interest. END
To learn more visit www.masana.biz.
Customers see value from suppliers who demonstrate
specific competencies in
their relationships in the business-
to-business world. It is these customers that
reward their high competency
suppliers with their business. And it is for this
reason why Masana is striving to operate in the rare air of best in
class suppliers
10 Junction AvenueParktown2193
Tel: +27 11 544 6300Fax: +27 11 544 6303
www.masana.biz
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