SANJI ELECTRONICS: Secure Sanji Posts Consistent Year-on-Year Growth

A sickening report was released recently, highlighting South Africa’s eye watering crime statistics and how, unfortunately, they continue to rise. The country’s criminals continue to become more creative and, thanks to wider macroeconomic conditions, more are turning to unscrupulous activity to get by. Automotive crime continues to blight the country, which has gained an international reputation as one where auto-related offence is a norm.

The South African Police Service (SAPS) reported in August that between April and June 2022, more than 5800 hijackings occurred around SA – a 14% increase on the previous year and an average of one car stolen every 22 minutes. In 2022, South Africans are still being told to consider whether they should pull into their own driveway, and being advised to keep an eye out for tails and suspect behaviour in the neighbourhood around their homes.

As manufacturers have installed new systems, such as push to start buttons, crooks have adapted, becoming increasingly technologically advanced. Jammers and signal blockers are all-to-easy to access, and so many are unaware of the threats they are faced with.

Thankfully, Sanji Electronics continues to provide industry-leading vehicle security systems and associated electronic equipment to make the country’s automotive industry safer and more reliable. A designer, manufacturer, and seller of advanced vehicular security products, Sanji often installs direct into units along the assembly line. A strong partnership with Isuzu, as well as similar arrangements with many other manufacturers, has helped build the company into a powerhouse.

In 2020, Managing Director Steve Easton told Enterprise Africa that the company was thriving and searching for consistent double-digit year-on-year growth. In 2021, he confirmed that, through diversification and hard work, the company had achieved this and was primed for further growth.

Never wanting to use the challenge of the pandemic as an excuse, Easton has always been clear that Sanji would do all it could to serve clients with the highest level of quality, despite tough circumstances. This dedication to excellence has served the company well, with Sanji booming during 2020 while others struggled.

Now, this impressive Kyalami-based business is continuing to display dominance, as Easton explains.

“Last time, we had a very good year in the middle of the Covid situation. Last year, we had an even better year and we exceeded all of our expectations – we are thrilled and we are moving in the right direction,” he tells Enterprise Africa. “All the building blocks that have been put in place over the past few years are starting to fall into place and we are in a very good space.”

CUSTOMER COMES FIRST

Asked how the company has managed to continue growing in such a harsh business climate, Easton is clear that an everlasting focus on customer experience is essential.

“It goes back to our original principals of giving the best customer service. As I have mentioned before, we are not a family business but that is how we operate. We have a fantastic team and that mindset goes right through the business,” he says, talking of a team of around 60 that covers three offices. “We all know that the customer comes first, we go to the ends of the earth for our customers and that is what has been a turning point. For a lot of companies, when times are tough they quickly cut support. We have kept our support as our technical knowledge is paramount to our success. We work hard, we are always developing, and we move with the times, but our support, customer service, and quality is second to none. That is the reason we are growing year on year.”

The wider automotive industry, as well as its feed-in sectors, has struggled thanks to a shortage in components, logistical challenges, and an unpredictable demand problem. A global semiconductor chip shortage continues to wreak havoc across the sector, and adverse weather and IT issues at ports contributed in South Africa. But in August 2022, the country registered more than 43,500 new vehicles – a 30.9% year-on-year increase (albeit from a low base). Sanji Electronics did not entirely negate the challenges, but it is strongly positioned to take advantage of a buoyant local market.

“The international component shortage has affected us, like any electronic manufacturing company,” says Easton. “But we are fortunate enough that our team saw it coming and so we put a lot of steps in place with our stockholding growing by three times. We bought up stock as it was being released in order to not let our customers down – that made a huge difference in our growth as we were always able to supply.

“There were delays in the supply chain,” he adds. “We had a component that used to be a 32-35 day lead time but suddenly it became 50 weeks. There were opportunities to buy components online at a premium and we did that, buying up whatever we could to be sure that we kept the wheel turning. We got into a situation where we were able to sell components to companies because we didn’t need all the raw materials. It’s not an ideal situation but it keeps the factory running and, more importantly, keeps our customer supplied and happy. The bottom line is that we have delivered for our customers and we have exceeded their expectations – our OEM clients and our contract manufacturers, we haven’t let anyone down. At the end of 2021, the factory was working seven days a week to ensure we met demand – that is what we will do to ensure a happy customer.”

Following the success of the company’s ZX JamAlert, ZX90-V anti-hijack system, Journey Organizer app, and more, Sanji is busy with new products that have been a long time in the making.

ELECTROMECHANICAL ARM

“We have a number of facets in the business; a manufacturing side, a vehicle security side, and accessories. We have added another tier to the business which is around electromechanical. In South Africa, big double-cab bakkies are popular but the tailgate doesn’t have a lock, or they have a key which must be used to manually lock. We have automated that process with advanced security, giving the convenience. With these vehicles, there is also a canopy that goes over the back of the bakkie. We have developed a canopy lock, linked to the vehicle’s remote control. Orders have just started going out this month. We are busy with a major motor manufacturer in South Africa where we hope to make this a standard on their vehicles. It’s an exciting time and an exciting new venture that we have put a lot of R&D into.”

For South Africans, the bakkie is a popular choice with Toyota, Ford, Nissan, VW, Hyundai, Isuzu, and other OEMs producing popular models that are among the country’s most-wanted vehicles. As manufacturers look for every opportunity bring the cost down for the end user, new prospects are presented for Sanji, and this keeps the innovative team busy.

“You have to develop each manufacturer separately,” says Easton. “We have started with Isuzu, we are growing with other manufactures and we hope to replicate what we do there and fit on the line.

“We are always looking for opportunities to go into new areas. Right now, we are looking at various things but we are still busy with this electromechanical project which has been very big for us. It’s just started going to market and we need to see it through as it is different for all the manufacturers. That will keep us busy for this financial year.”

Further down the line, the future becomes more difficult to predict at Sanji, but Easton is concentrating on consistent year-on-year growth while delivering quality in the automotive space. To date, this has been achieved and the company has a successful recipe for success.

“We will always stay in our lane. We have burnt our fingers by looking at things that we are not familiar with,” he says. “We will stick to what we know. We know the motor industry very well. There will be more growth in this space. We always want to enhance our product range to complement the motor industry. There are a lot of new cars coming through in South Africa and, because of the ludicrous cost, they are stripping out all of the niceties and that leaves big opportunities for us.”

CAPACITY EXPANSION?

A passionate leader, with a desire to grow sustainably, Easton is preparing for capacity improvements but is conscious of the unpredictable nature of the commercial environment both globally and at home in South Africa.

“Unemployment in SA is crazy. Over the last year we have managed to create quite a few new jobs and bring in new people,” he highlights. “We are getting to the point where we are quoting on big new projects which are yet to be confirmed but if we do get them we will definitely be expanding our factory which will create even more jobs.”

But even with this further positivity on the horizon, there remains caution and a commitment to nimble business principles.

“Where our country is at the moment, it is hard to look beyond the next five years,” says Easton. “There should be vast improvements, but who knows. We are taking small steps and we are confident about the next two years, but beyond that, we are watching.”

He emphasises the company’s speed and ability to tackle issues quickly as they arise as a real differentiator and something which allows for a mitigation against long-term economic risks.

“The way we run this business, we are quick to react. There is no bureaucracy,” he verifies. “If we want to change direction, we don’t have to go through multiple board meetings. We make decisions quickly and that is why we are successful. For example, a customer came to us recently and asked us to upgrade software on one of our older products. They had the new software in five days. We react quickly and if we can technically do it and it makes financial sense we do it.”

Inventive, pioneering, and truly knowledgeable of the industry in which it operates, Sanji Electronics has grown to become a trusted partner of motorists and OEMs in South Africa. As vehicle crime challenges become more sophisticated, Sanji’s offerings grow in importance. Proven on the road, these are no gimmicks. Manufactured to ISO9001 quality standards and thoroughly tested, products from Sanji protect and safeguard, while making life on the tarmac easier.

“The customer comes first, that has always been the case. If there is a problem, we deal with it, we don’t run away from it. Things change quickly and our reaction time is why we have grown. What we do we do well, and we look after our people. It is unusual for people to leave this business; we have a happy team and that goes into the product that goes out of the door, creating a good experience for our customers,” Easton concludes.