Sanji Electronics: Intelligently Out-thinking SA’s Vehicle Villains

Difficult for all, navigable for some, thriving for few. 2020 and everything ever since has been an untidy and unwelcome mess thanks to the Covid-19 pandemic. Leaving even the most secure businesses in tatters, this shock to the system looks to be with us for the foreseeable.

To make things worse, as the outbreak has worn on, and businesses have been impacted beyond belief, official unemployment figures have been fuelled. The result – crime stats have rocketed. Initially, stats slowed as the tightest restrictions were enforced, but as lockdown levels dropped, criminals saw new opportunities.

Thankfully, one company that has been robust during these unpredictable times is Sanji Electronics. In December 2016, Managing Director Steve Easton told Enterprise Africa that this innovative company, known for quality service delivery, was staying ahead of the crime wave by producing state-of-the-art technology that protects motorists.

“Anyone who has invested heavily in a vehicle needs to protect their investment,” he said.

Today, the company has grown, adapted and diversified and is serving new markets while continuing to protect vehicles from the country’s crooks.

According to Stats SA, almost 100,000 hijackings occurred in 2019/20. This startling figure was amplified by the fact that just 78% of victims reported the crime to the police, a 7% decrease on the previous year. Clearly, for peace of mind, alternative solutions are needed.

Thankfully, Sanji was one of those few companies that managed to thrive over the past 18-months.

FANTASTIC YEAR

“Strangely enough, it’s been a fantastic year for us,” says Easton. “We are very fortunate and I know a lot of our competition and a lot of industries here are really battling, but we’ve had a fantastic year. Our financial year runs from July to June and this year has been absolutely fantastic.”

He puts this success down to two factors: Exciting new contracts, and diversification into new sectors. Already a partner of OEMs including Hyundai, Kia, Mitsubishi and Mazda, Sanji inked a new partnership agreement with Isuzu to install custom manufactured security products onto vehicles in the Japanese company’s factory in Port Elizabeth. Isuzu Motors South Africa issued Sanji with a Certificate of Recognition, highlighting the company’s ability to deliver quality standards. This comes on top of Sanji’s already achieved ISO9001 accreditation.

“A big part of our success is our work with Isuzu with whom we have been working for many years,” says Easton. “We work on the bakkie on a contract that we got just before Covid hit. We started fitting in their factory in June last year and it was a challenge, right in the middle of that difficult period. We managed to do things well and that made a big difference for our numbers.”

Sanji is responsible for the supply of alarm systems and an ultrasonic sensor, all manufactured according to Isuzu internal quality basics (IQB). For Sanji, contracts like this are partnerships to be fostered in the long-term.

DIVERSIFIED STRATEGY

Over the company’s history, diversification has been a key growth strategy. Starting out as Sanji Electronics in 1986 – focussed on audio and visual electronics – the company quickly grew into vehicle security. At the time, the audio/visual side of the business was big and vehicle security the up-and-coming arm of the portfolio. “It made no sense to rebrand it at that time,” says Easton.

Eventually, the vehicle security division of the business became Sanji Security and car alarms, immobilisers, and trackers continued to grow in popularity as South African crime stats surged. Today, the security division has been rebranded and is now back under the Sanji Electronics banner, offering up a range of specifically designed travel and security related products. “With our diverse business right now, it made sense to go back to Sanji Electronics,” confirms Easton.

In 2015, the company launched the Sanji ZX JamAlert, a product which alerts a driver if the locking signal has been jammed when the ignition is switched off and the car exited. This type of crime saw a dramatic increase in the 2000s as remote controlled central locking became common place. In 2016, the company added the popular ZX WheelAlert product to its range, a system which triggers an alarm if the cars spare wheel is tampered with. In 2017, the ZX70 MK-2-CL-J and ZX70 MK2-CL-J-NS alarm products were released and hailed as a new era in prevention of car theft thanks to built in remote jamming technology. Later in the same year, Journey Organiser (JO) was added to make use of GPS applications and Bluetooth tech.

 “When you submit your returns and claim tax, this is an electronic logbook that connects to your phone and keeps your journeys and km travelled up to date. It didn’t make sense selling it as a security product and that was a big factor in us rebranding to Sanji Electronics again,” explains Easton.

“We also developed and are now marketing the JO Corporate system for company team members administrators. The JO Corporate will seamlessly manage, rate and incentivise your sales, technical and merchandising staff. When your employees get into a rut, it can be difficult for them to stay motivated and engaged. An incentive plan can breathe life back into their work and help managers keep their teams engaged. A well-designed incentive plan can help boost morale and create a positive corporate culture.

“JO Corporate gives you the power to manage, rate and incentivise your vehicle-based staff and is an intelligent system that will compare your team with simplicity and ease. The clear and straightforward JO Corporate reporting will give you a clear understanding of what is going on in the field, and it will allow you to manage and reward your staff regularly. Administrators will receive daily, weekly and monthly reports via email and can generate customised reports from the admin console at any time,” he adds.

2018 saw the launch of the JMP12, a vehicle jump starter device made with universal application in mind, able to start different types of car and also charge other electronic devices. In the last 18 months, the JMP12 and the JO have received updates to make them applicable to more vehicles and different users. The ongoing invention at Sanji comes as a result of its close relations with clients and understanding their needs. By rolling out a range of products to local market clients, Sanji has grown significantly.

“We have grown significantly, probably by around 10%,” says Easton.

“Our local market has grown exponentially and we have gained a number of local fitment centres which is where we are very strong. We have a very competitively-priced product but, more importantly, a very reliable product. There have been some products in South Africa that have had some technical issues. We have done extremely well by gaining some dealers that in the past have used our competition and who are now streaming over to us. Our local dealer base has grown exponentially. When things start stabilising, our numbers and sales will increase naturally,” he adds.

Sanji was closed in April and May 2020 as a result of the lockdown restrictions. “Last year was tough for us,” admits Easton. When the workforce returned, it was with certain limitations. However, previous adjustments to the company’s infrastructure lessened the impact of the shutdown, especially for employees.

“We took some initiatives around three years ago where we had a massive building in Kyalami with two companies running out of it. One was not cost-effective and we closed it,” details Easton. “We then moved into a more suitable building and we saved money, gearing up for growth. The old saying of ‘a new broom sweeps clean’ was true for us. When we moved in here, business turned. Our staff were happier, and we could see that confidence was improved. It felt strange being in a massive building and only occupying 75% of it.

“It’s been positive all around. We have a positive team. Sanji is privately-owned by the Gerber Goldschmidt Group and Management, but it is run like a family business where everyone is happy.”

POSITIVE SPARK

This spark of positivity – even in the current conditions where Covid-19 remains an ongoing threat – runs throughout the business, from HQ in Midrand, across regional offices in Cape Town and Durban.    

For Easton, the future is certainly bright. “Our projections for the next year is to grow by another 10%. We want to diversify and we are always looking for something new.”

Figures until the end of June underline his positivity. “We have achieved what we wanted to so far this year. We will actually likely overachieve on our goals so, under the circumstances, we are moving in the right direction. That also comes with a lot of our exports drying up because of the pandemic, so it’s all local which is great.”

Recently, in a bid to further boost the company’s international exposure, Sanji appointed a business development manager focussed on growing development in Africa. alongside geographical expansion, the produce range will also grow.

“We are busy with research and development around new products but I cannot divulge right now. We are working on a number of things. Our core business is vehicle security and we have expanded on that. Without giving away too much, we will be releasing some value-adding products,” Easton smiles.

This is a business that takes its position at the cutting edge of automotive security very seriously. According to the Institute for Security Studies, crime numbers dip during lockdown level four and five, but shoot up again very quickly when restrictions are removed. Trust in police and reporting of crimes remains low, and private security companies are centred around guarding of people and homes, with vehicles a secondary priority.

OEMs, dealerships, and local fitment centres now shoulder some responsibility for security and Sanji has proven itself the perfect partner.

“The biggest thing is that we have been around for 36 years and it shows that we still work with old school values and principles – we stick to our word, and that is why we are still around. There are a lot of fly-by-night, come and go companies; we are sustainable, run the right way – we pay our bills on time. In these times, everyone is using Covid as an excuse; we don’t do that. We are still here because people trust us. We are a household name and quality is paramount for us – we are renowned for it. Our customer and after-sales service is first class. We are regularly complemented for it. Times are hard, people are battling with cash flow. If you buy something and you have a problem, it must be sorted very quickly. We are recognised for reacting very quickly and that is what we have built the business on,” summates Easton.

Sanji, a B-BBEE Level 3 Contributor, continues to do all it can to help its clients and their customers to protect their assets, and use innovative electronic devices to solve common problems on South Africa’s roads. Where some have crashed as a result of the pandemic, Sanji drives forward, brining new ideas and optimism. This is without doubt a company that the country can be both proud of and thankful for.