Safal Group Company - Mabati Rolling Mills

MABATINEWSNew Employees.. WelcomeManesh ChavdaChief OperatingOfficerUrbanus MbithiTrainee EngineerPeter MajangoStores ExecutiveGrace OgalManager, HumanResources & CorporateGovernanceSatish SawhneyGeneral ManagerFinance... And those who have moved to otherSafal Group CompaniesK V KamathExecutive Director, SPG,Kenya becomes CEO,SAFAL, Southern AfricanregionColins NgenoTrainee EngineerJoshua MutieTrainee EngineerAshok RupareliaGeneral Manager,Projects off to SafintraSouth Africa as GroupTechnical ManagerPaul WereTrainee EngineerSolomon OliechChief Security OfficerN. R. NarayananGeneral Manager, Financemoves to ALAF Tanzaniaas CFO. He also becomesthe CFO, SAFAL Group... And those who have retiredAfter serving as the Managing Director of Kifaru Trading, SouthAfrica (a SAFAL Group company), for 10 years, Roy Jones retired inDecember 2005. We wish him the very best in his future. A manof many achievements, Roy has great experience in the iron & steelbusiness, loves classic cars, cycling, wine, gourmet food, photography,church choirs and mountainering among other things. He is married toJanet, has a daughter and a granddaughter.George MathewManager Industrial Sales &Business Development, ina new position at InsteelLtd, a SAFAL companyA2005 was a year ofaccomplishments and awardsfor MRM. We brought homea Warrior Award, an EnergyAward and the Kenya RevenueAuthority feted MRM as one of the top100 taxpayers.It was the clean sweep of fourprestigious awards at the COYA(Company of the Year Award), whichfeatured as our cover story in theOctober issue. Hot on their heelswere three more, equally prestigiousawards!MRM bagged the Gold categoryof the Marketing Society of Kenya(MSK) Warrior Awards for the BestNew Product/Service launch for our“Versatile” profile, beating suchprestigious companies as KenyaAirways for its Boeing 777 launch,Standard Chartered for its Home Loanlaunch and Mumias Sugar for it’s halfkilo and quarter kilo pack launch.MRM’s entry satisfied the judgesthat its launch campaign was effectivein generating awareness, trial andadoption for the Versatile profile.As Chief judge, Jane Deloire ofResearch Solutions said during theceremony: “We need you to give usthe business results. What gap hasyour company identified, and howhas it been filled? What growth hasbeen achieved since the launch of theproduct?”Versatile’s performance wasforecasted, planned and executedto the last detail. What is importantwas that MRM was able to providethe MSK with detailed informationon market situation leading up to thedevelopment and launch of Versatile.The target market was clearlydefined, product positioning mappedwithin its category and its relativemarket share relative to its primarycompetitors within six months tolaunch spelled out. Other factorssuch as competitive advantage andMRM News | 4

Season of awardsENERGY MANAGEMENTAWARD 2005COVER STORYAt a Gala Nite held in September2005, to celebrate EnergyEfficiency and Conservationsuccess organised by GEF-KAM Energy Project, MRM wasnominated as the winner for‘Innovation’ Category of the EnergyManagement Award 2005.distribution were also planned and executed to plan.Marketing goals were highlighted, awareness levels, trialand adoption levels delineated.Our communication strategy was innovative andeffective promotional materials and mediums were used.All the months of careful planning and a successfulmarketing campaign resulted in winning the WarriorAward.Congratulations to the Versatile team!The truest ‘warriors’ are the consumers out there,who trust in our product and buy it. Thank you consumer.Thank you MSK!The Managing Director of Kenya Bureau of Standards, EngineerJohn Masila, (left) presents the Energy Innovation Award toMr Peter Kilonzi, Chief Engineer, MRM (centre) and Mr SanjayTerdal, Chief Engineer, MRM (right).KENYAREVENUEAUTHORITYAWARDMabati Rolling Milllswas honoured asone of the top 100taxpayers in Kenya forthe year 2005.MRM News | 5

MEET OUR DIRECTORMABATINEWSA jack of alltrades and amaster of allBy George MathewUniversity don, bank director, companychairman, ambassador, MRM Director–all these epithets still do not capturethe essence of the humble, soft spokenDr Benjamin Kipkorir. He had some veryinteresting things to say. Read on.Mabati News: Sir, if I may be permittedto say so, you have had a diverse career,Cambridge educated during the sixties,Head of History at the University of Nairobi,Executive Director, Kenya Commercial Bank,Director, Industrial Development Bank,Kenya’s Ambassador to the United Statesof America, decorated as an Elder of theBurning Spear, I am sure the list goes on.What were the most memorable things ofthis period? Would you wish to have livedyour life differently if you had a chance?Dr Kipkorir: I have had an excitingtime. I have had the chance to work inlocal government administration, I haveworked in the university, I have run aresearch institute then I got into banking,which opened a whole new world for me,new friends and new activities. This waswonderful. The appointment to Washingtonas ambassador came as a crowning pieceto my career. I have had different jobs andgot the satisfaction of the experiences butthrough not pursuing one career. If I coulddo it differently I would wish to have a linearcareer in one organisation.Mabati News: Are there any memorablemoments or incidents from all these years?Dr Kipkorir: My very first assignmentas a local government officer in Sirikwa,Eldoret in 1965 allowed me to meet allkinds of people. One December I washosting a Christmas party for the councillorsand important members of the Eldoret civiccommunity. A white councillor came up to meand asked: “Could I bring my wife?” I replied,“But the card says Mr and Mrs.” To which heresponded: “The problem is that my wife isAfrican.” I looked at him and said, “But I am alsoan African.” And this was the very first time thisAfrican lady married to a white man was broughtto a public arena.Mabati News: Any other experiences Sir, fromyour days at the University of Nairobi?Dr Kipkorir: I joined the University of Nairobiin 1970, the year it was inaugurated out of theUniversity of East Africa. It was a time of greatpromise and excitement. The University wasindependent, young and alive with enthusiasticscholars. Despite claims that the quality ofeducation at UoN has declined over the years Iam happy to note that there are efforts to revivethe standards of education there.Mabati News: Any experiences from your days asAmbassador to the US?Dr Kipkorir: The one exciting experience isthat of fighting American restrictive rules againstimport of Kenyan textiles. I was right at the centreof that. The Minister of Trade and Industry atthat time, Hon. Kiruki M'Mukindia asked me togo and pursue the export markets for Kenyantextile goods. Kenya textiles exports to America,especially pillowcases and sheets were risingrapidly in 1994. This alarmed Americans andthey imposed quotas. One US Congressman wasso upset about this because he felt it was betterfor the African countries to benefit from tradewith America than receive aid and he proposedthe African Growth and Opportunity Act. I testifiedtwice, once at the US Trade Commission andagain at the US Committee of the Congress.Mabati News: How intense is the lobbying in theUS?Dr Kipkorir: US legislation is a functionof many factors and forces. There are interestgroups or constituencies. The powerful cottonlobby produce cotton at subsidised prices.The textile lobby are those who manufacturetextiles with protection from the US government.When an African trade minister meets with aUS trade representative, they are on differentwavelengths. While the African Minister has allthe authority to make a decision on the spot,the US official cannot do so. He has to consulthis constituents and the forces behind them.He follows a due process where all interests arebrought to the table, evaluated and eventuallyan American position arrived at. Then he is ableto make a decision. Then they start lobbying.They have all our statistics, know all our players,they downplay our strengths and highlight ourweaknesses and within no time you find yourselfyielding to their view. African producers have tocontend with such forces. Fortunately for the restof the world, the Chinese are really beating themby producing cheaper, good quality textiles.Mabati News: What do you find different from theKenya of the 60’s and that of today?Dr Kipkorir: Forty years ago, things worked.The roads were good. I remember I could leavemy home in Eldoret after dinner at 8pm andexactly three hours later I’d be in NairobiMabati News: In three hours?Dr Kipkorir: Yes three hours at 60kph. Theroads were smooth and roadblocks did not exist.Local authorities functioned. A farmer producedmaize or wheat took it to KFF and collected hismoney. As simple as that. Today we have manyroadblocks and all other manner of barriers inthe way to do anything. That is the big differenceMRM News | 6

MABATINEWSReceiving a gift from James Kimanthi, aformer classmate at the Nyali Golf Clubfrom 40 years ago and today. What we reallyneed are institutional capacities to identifythe problem: how we are going to solve theproblems and how we are going to implementthe solutions. We have the capacity and thepeople to do it.Mabati News: Any advices for the nextgeneration?Dr Kipkorir: I am very happy with the degreeof professionalism coming in today. Peopleare highly qualified and competent. Tribalismis taking a backseat as more young peopleintermarry. My children have married peoplefrom different tribes. This is the way forward.Mabati News: As a Member of the Board ofDirectors, Mabati Rolling Mills what do you wishto tell the readers?Dr Kipkorir: I met Manu in the late 70’s. Iwas Chairman of IDB. At the time the plant atMariakani was under construction. It was duringa meeting in Abidjan for the African developmentBank. Comcraft had made an applicationfor funds for the smelter at Mariakani formanufacturing Aluminium. There was oppositionby a number of African delegates that it was anon-African venture by an Indian.I remember talking to the President of theAfrican Development Bank, Babacar N'Diayeat the time, and saying, “This is an investmentthat will create employment in Kenya and boosttechnology transfer in Kenya. I happen to knowthe people behind this. They are Kenyans. Thisis not to be seen as a foreign investment byan Indian. Since then I have taken a continuedinterest in Manu’s work and the Comcraft group.When I became Chairman of KenyaCommercial Bank I visited Kaluworks inMombasa and I was amazed at the array ofWith Dr. Manu and some visitors at MRMordinary household goods such as cups, teapots,milk jugs, lanterns and sufurias turned out of theplant. I was very impressed.Kenyans are willing to invest in good ideasand good management. The group is now ripefor part of public ownership in the marketplaceand also for expansion in the public place. Tradebarriers, not just within East Africa itself but alsoin the region are increasingly coming down andas a group we need to take advantage of thesenew opportunities.I really look forward to the day we go publicand get the capacity to expand and achieve thelong-term objectives Manu has had all theseyears.I greatly admire Manu and through him Ihave met all the other directors. I feel privilegedto be working with these entrepreneurs and to bea part of the growth of this organisation.Mabati News: Last question if I may. What do youdo with your life now? Any involvement in socialresponsibility work?Dr Kipkorir: Now that I am retired I am doingsome history research and writing.I have been involved in social responsibilitymostly education. I have been behind highschool building initiatives in Marakwet Districtsuch as Moi Kapsowar Girls, Cheptonge,Chiptilon among others. I have served in theboards of various high schools including St.George’s here in Nairobi. I am also involved atthe local level in building a church at Kapchiropand a water project at my home in Kipkundu.Manu supported me in this project. I would verymuch like to do a children’s clinic with the helpof the Chandaria Foundation.Mabati News wishes you the very best in yourefforts.SIDESHOWBorn in Kapsowar in 1939 DrKipkorir holds a PhD from theUniversity of Cambridge. Between1969 and 1977 he taught Historyat the University of Nairobi, HistoryDepartment. This was quicklyfollowed by a stint as Director ofthe Institute of African Studies from1977 –1983.For his services to the public,Dr Kipkorir was honoured by retiredPresident Moi with the award of theElder of the Burning Spear of theRepublic (EBS) in 1987. He wasappointed Kenya’s Ambassadorto the US from 1994 to 1997 andhas served on three PresidentialCommissions of Inquiry includingthe Armed Forces Pay andAllowances Review Board and theUniversity Working Party.The published book andarticles author has served asthe Executive Chairman of theKenya Commercial Bank andchaired General Motors KenyaLtd board. He has also servedon several boards in a number oforganisations, private, parastataland educational institutions invarious capacities.A devoted social responsibilityenthusiast Dr Kipkorir has beeninvolved in secondary and technicalschools development in his homedistrict, Marakwet among otherareas within the country. The keengolfer is a member of MuthaigaGolf Club as well as the KitaleClub. He is currently playing offhandicap 14.MRM News | 7

PICTORIALINSTITUTE OF ENGINEERSSEMINARMabati held a seminar for the Institute of Engineers,Mombasa division on December 3rd, 2005. The engineerswere driven to MRM-Mariakani, shown our productionprocesses and then treated to a cocktail as our personnelconducted a presentation on our product range.NATIONAL HOUSINGCORPORATION VISITS MABATIA section of 30 professionals led by EngineerOgolla, from the National Housing Corporationlistening keenly to our personnel taking themthough a presentation of our product range.They visited our offices at Nairobi for a technicalseminar in January 2006.THE KENYA RAINWATERASSOCIATION SHOWMRM participated in Kenya Rainwater Association Show, held at theNational Museum of Kenya grounds between 9th and 10th of December2005. Many show visitors appreciated the fact that MRM’s gutters anddown pipes helped collect and provide clean water.A BEAUTIFUL VERSATILEROOF IN GOMA, DRCHouses built by Versatile sheets are abeauty to behold. Here is one far fromKenya, in Goma, the Democratic Republicof the CongoMRM News | 8

BARCLAYS OFFICALS VISITMRM-MARIAKANITop officials of Barclays Bank, paid a courtesycall to MRM, Mariakani. Seen in the picture areAdan Mohamed, MD, Paul Chemongren, DominicBryunseels, Ayisi Makatiani among othersPICTORIALSTANDARD CHARTEREDMARATHONMRM sponsored 36 athletes to theStandard Chartered Marathon held onOctober 23rd, 2005. The employeesparticipated in all three categories,10Kms (men and women), 21Kms(half marathon) as well as the 42Kms(full marathon).The team ready tostart up the raceMRM CHRISTMAS PARTYSTEVE'S WEDDINGKaushik Shah, CEO MRM addresses the staffAllan Nyaga Admin. Manager receives an award for20 years servicesThe debonair Steven Kiruhi (Executive - ProductDevelopment, MRM) and his charming lady,Monica cuts the cake on their wedding day.MRM News | 9

Social ConcernSOCIAL CONCERNHELP TO THE HOMELESSMRM supplied Dumu Sheets to Kibo Slopes Academy, Loitokitok,a primary school owned and operated by Homeless ChildrenInternational-Kenya (HCI-Kenya). The home helps street childrento become leaders in diverse professions. MRM is honoured tobe part of the group of donors, who by their special assistancehave in some small way helped move these former street childreninto their own school building.One of the children at the schooldecided to thank us by drawing apicture of their new school just forthe readers of this Newsletter.And here are the delightedstudents with Megan White,Resource Mobilisation Managerof HCI-Kenya.……….AND ASSISTANCE TO A CHURCHOld church structuresMRM assisted a small Africa InlandChurch in Kapsoo, Kerio Valley by offeringdiscounted prices on Dumu sheets to helpthem build their church. In the words ofMoses Barboi, “This act of benevolencegave the church the opportunity to utilisethe few resources we have to completethe project.”Brand new brick structuresMRM News | 10

CORROSHIELD FASTENERSCORROSHIELD Self-Drilling Screws arepremium, high corrosion-resistant fasteners especiallyin outdoor environments where the screwsare exposed to the corroding effects of the naturalatmosphere. Their high corrosion resistance makesthem the perfect match for roofs of Aluminium-Zinc coated Steel; bare or pre-painted (DUMUZASor GalsheetResincot).CORROSHIELD Self-Drilling Screws are coatedby a unique plating method which utilises mechanicalenergy to deposit Tin-Zinc compound metalsonto the fastener’s surface. This plating method isfar superior to conventional electro-platingwith Zinc.THE PRODUCTS ANDTHEIR FEATURES· CORROSHIELDSelf-DrillingScrews aremanufacturedtointernationalstandardslike DIN and ASTM whose tests are conductedeither on annually or bi-annually to maintaintheir validity.· CORROSHIELD Self-Drilling fasteners offerthe best value for money because the last up to5 times longer than ordinary galvanised fasteners.They cost significantly less than stainlesssteel fasteners and perform much better thanzinc electro-plated fasteners.· CORROSHEILD Self-Drilling fasteners havea superior coating that exhibits both excellentcorrosion protection and drastically reduces therisk of hydrogen embrittlement; able to, in oneoperation, self-drill and fasten cladding materialsonto the carrying structure.· CORROSHIELD Self-Drilling Fasteners aretagged with a warranty against pre-mature corrosion.CORROSHIELD (CS SERIES)SELF-DRILLING FASTENERS:This is CORROSHIELD‘s series ofCarbon-Steel Self-Drilling Fastenerscomplying to AS 3566.2 – 2002, Class3 and are recommended for constructingsteel buildings, cladding or metalroofing. CORROSHIELD Hi-torque8mm magnetic Hexagonal socket adaptersthat can fit most power drills in themarket are also available. Clutch-typepower drills are recommended to helpavoid ‘inexperience’ problems like overtightening.FEATURES OF THECORROSHIELDCS SERIESFASTENERS:· High corrosion resistant for outdoorapplications.· CORROSHIELD coating complyingwith AS 3566 Class 3, 1990.· LEVIN Drill Point for improved drillpenetration (up to 30 per cent fasterthan conventional drill points)· The Anti-Slip feature of LEVINDrill Point prevents running/circlingthat causes the scratching, hencepremature deterioration, of roofingsheets and the wastage of damaged /lost screws.· Factory warranty against pre-maturecorrosion· Grey/Black EPDM Washers orBonded Washers· CORROSHIELD DT rangefasteners have the SCRATCH-SHIELD feature (see pictureabove) that protects the upper-shankcoating from damage & corrosionfrom high humidity prevalent undersheet crests.PRODUCT INFOMRM News | 11

INSTEEL LimitedA SAFAL GROUP COMPANY“Insteel is one of Kenya’s leading manufacturer andsupplier of steel water pipes, hollow sections andtubes with a reputation for professional managementand service excellence in the entire East African region.Since inception in 1978, we have achieved impressivegrowth in the years thanks to our commitment toservice, quality products and a sound managementpolicy.The various products of the company can broadlybe categorized as Galvanized Steel Pipes, Black SteelPipes, Hollow Sections, Zed Purlins, GalvanisedConduits, Mild Steel Channels, Cold Rolled Angles,Cold Rolled Sheets, Mild Steel Plates, Mild SteelFlats, Hoops in Coil, Expanded Metal and Door FrameSections.The company is renowned for the best qualityand widest range of products, constant upgrading ofmachinery to conform to the latest technology in steelmanufacturing and has a diversified product range.This has enabled the company to keep pace withrapidly changing customer needs to ensure growth in amulti cultural business environment.The products are second to none and conform toKenya Bureau of Standards and International Standards.The success of the company is attributed to hard work,diligence and a long-standing desire to continue asthe market leader. We promote a culture of teamworkamongst ourselves and with our customers. We believethat leadership begins with service. Professional inputreceived from time to time from contractors, engineers,surveyors and architects have contributed a lot to thedevelopment of widest range of products.The plant is located at Ol Kalou Road in the heartof Nairobi’s Industrial Area – the ultimate solutionfor steel requirements focused to circle the Africancontinent with quality steel pipes.The company isrenowned for the bestquality and widest rangeof products, constantupgrading of machineryto conform to the latesttechnology in steelmanufacturing and has adiversified product range.It has total strength of 250 employees well trained bothlocally and overseas to maintain its supremacy in the market.The manufacturing plant consists of a slitting machine, opensection forming mill, automatic shearing line, three Tube Mills(2 ½”Mill, 3” Mill and 10” Mill) and a Galvanizing Plant.At Insteel, quality control is a continuous process rightfrom the point of receiving the raw material and is observedat each manufacturing stage. Strict quality control is observedto ensure conformance to Kenya Bureau of Standards’ andInternational Standards’ specifications.Our company boasts of being the only company in EastAfrica with a 10”Mill which produces large diameter pipes andsections.The company can meet the requirements of projectsranging from water supply and sewerage systems, dams,simple housing, civil engineering etc.The company looks into the future with an aura ofconfidence and optimism for providing best possible service,value for money and satisfaction to customers in the continentand beyond.”Design & Production: Oakland Media Services Ltd. 1st Floor Reliance Centre, Woodvale Grove, WestlandsTel: 4441319, 4442352 Tel/Fax: 4445068 E-mail: info@oaklandmedia.com Website: www.oaklandmedia.com