Company Reports - Van Dyck Carpets
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http://www.vandyck.co.za
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Van Dyck Carpets
SA's longest established carpet brand
Written by Ian Armitage & Produced by John Holliman
Carpet manufacturing is big business. Having survived the worst the global economic meltdown had to throw at it, it is now primed for an estimated 2.5 percent annual world growth through to 2012.
Demand for carpet and flooring is on an upward trend and amongst those looking to capi talise on the oppor tuni t y is Van Dyck Carpets, manufacturers of tufted and needlepunch broadloom carpets and tiles.
Van Dyck, though, isn’t your average player. Nor is it a newcomer. It is South Africa’s longest established carpet brand, founded in 1948, and it has quite a history.
“The company and i ts products are associated with superior style, quality and performance,” says Dr Mehran Zarrebini, who’s family bought the company from Domo NV in 2004, reinstated the brand and set about transforming the company.
“One of the things we have done is vertically integrate key parts of the business,” he says. “There are several advantages to this, especially given the fallout from the economic situation in 2008 and 2009.
“We have also looked to become more flexible in terms of manufacturing. We offer various different sorts of products and are able to adapt and change our product lines very quickly. We are trying to differentiate our product from the others in the market and concentrating on the niche markets that emerge within our industry, or doing something slightly different.”
The carpet and rugs industry is divided into two primary markets, says Zarrebini. The first is residential and the second commercial, which both, through a fall in disposable consumer income, suffered declines during the downturn of 2008 and 2009.
“It is interesting,” says Zarrebini, “a lot of people are focused on the negativity of the downturn and the economic crisis; they characterised it as one of the most difficult periods in the manufacturing and financial sectors. Really, we couldn’t escape the effects of the recession - or the economic headwind, to use a more appropriate phrase - in South Africa in 2008 and 2009. It provided us with a challenging operating environment, especially in the carpet industry. But out of all this negativity arises opportunity and we started to witness the formation of partnerships and are enjoying the leveraging capabilities of such partnerships.”
Indeed, through the signing of partnerships with international and local flooring partners, such as Mohawk (USA) and Tiger Tur f (UK), Van Dyck has remained at the forefront of flooring technology in South Africa and continues to lead the market.
“Tiger Tur f is an interesting one,” says Zarrebini. “We are now manufacturing on their behalf in South Africa, providing the African continent , from the sub-Sahara down, with artificial grass for landscapes and sports facilities. In terms of manufacturing, we have embarked on that par tnership. In terms of sales, we have started to partner with a lot of companies, especially in the SADC Region – Zimbabwe, Zambia, Tanzania, Botswana, Namibia – where we have par tnered up with local distributors or localagents and they are pushing our brand into those areas. So, it was a result of the consequence of the slowdown in the economy that forced us to form partnerships with other companies.”
Partnership isn’t the only reason Van Dyck has remained successful, however. Through continuous product innovation, new product launches, and the recolouring of popular existing ranges - to name a few additional initiatives - it has kept its nose in front of its competitors. “That is true,” says Zarrebini.
QUALITY FOCUS
The Van Dyck Carpets factory is based in Durban in KwaZulu-Natal and has SABS ISO 9001:2008 cer tification. SABS ISO 9001:2008 cer t i f icat ion means that al l products and processes meet the strict quality control and standards of the International Standards Organisation administered locally by the South African Bureau of Standards (SABS). “That is very important to us as we look to grow in the future,” says Zarrebini. “We do a lot of testing,” he adds. “Every product is tested by our unique Tor ture Tunnel to ensure that it meets the required performance, durability and safety standards.”
Zarrebini went onto explain that, with environmental issues becoming important again, Van Dyck Carpets has been “upping the ante” in terms of its environmental focus and policy. “Van Dyck Carpets has a Green Policy and Mission Statement that signals a clear commitment to being green,” says Zarrebini, commenting that, on the manufacturing side, the company is making regular, impressive gains in waste minimalisation, energy reduction, the reduction of emissions, reduction in the use of hazardous materials, and the recycling of production waste and old carpets that would otherwise be committed to landfills. “Recycling is an area that is important to us,” he adds. “All production rejects and short ends are converted into rugs or tiles for re-use and resale, and yarn creel ends are used for overlocking of rugs and samples. We have also designed, developed, manufactured and launched Oxygen on Eco-back, South Africa’s first environmentally friendly carpet made from more than 50 percent recycled materials.”
GROWTH MARKETS
Things are looking good for Van Dyck Carpets at the moment and Zarrebini is optimistic about the future. He explained that the company is witnessing gains in most markets, specifically the hospitality industry, which he says is a strong local growth market. Indeed, in the hotel segment alone, a number of new developments have or are opening to support the World Cup, and this is a tremendous opportunity for carpet manufacturers like Van Dyck. “Commercial and residential is also set to grow locally,” says Zarrebini. “As the economy improves, more people have disposable income and that is good for us.”
The advantage for Van Dyck is that customers are looking for carpets that they are familiar with or which offer significant cost savings and performance benefits. “We have the reputation and that matters,” Zarrebini says.
Local opportunities aren’t the only ones Van Dyck is interested in. The company is also looking for international growth. “We have the systems and certifications in place for international success,” he says. “We have a very good local market and we are gaining market share in South Africa, especially on the residential and commercial side of things. We have also increased our market share in the hospitality sector within South Africa; so South Africa is a very important part of our business. Besides that, we have witnessed a number of opportunities springing up in Africa and also beyond that we have started to develop partnerships with companies elsewhere - Australia, New Zealand and South America. There are a lot of opportunities, but it needs a lot of focus and attention. We have been spending a lot of effort developing these markets in these countries because we believe that, due to vertical integration, we can be very competitive in these countries. One stumbling block is the high transport cost, but we have been able to overcome that with the low cost production. That means we are still competitive in those markets.” Export is one market Zarrebini is looking to expand.
Demand for carpet and flooring is on an upward trend and amongst those looking to capi talise on the oppor tuni t y is Van Dyck Carpets, manufacturers of tufted and needlepunch broadloom carpets and tiles.
Van Dyck, though, isn’t your average player. Nor is it a newcomer. It is South Africa’s longest established carpet brand, founded in 1948, and it has quite a history.
“The company and i ts products are associated with superior style, quality and performance,” says Dr Mehran Zarrebini, who’s family bought the company from Domo NV in 2004, reinstated the brand and set about transforming the company.
“One of the things we have done is vertically integrate key parts of the business,” he says. “There are several advantages to this, especially given the fallout from the economic situation in 2008 and 2009.
“We have also looked to become more flexible in terms of manufacturing. We offer various different sorts of products and are able to adapt and change our product lines very quickly. We are trying to differentiate our product from the others in the market and concentrating on the niche markets that emerge within our industry, or doing something slightly different.”
The carpet and rugs industry is divided into two primary markets, says Zarrebini. The first is residential and the second commercial, which both, through a fall in disposable consumer income, suffered declines during the downturn of 2008 and 2009.
“It is interesting,” says Zarrebini, “a lot of people are focused on the negativity of the downturn and the economic crisis; they characterised it as one of the most difficult periods in the manufacturing and financial sectors. Really, we couldn’t escape the effects of the recession - or the economic headwind, to use a more appropriate phrase - in South Africa in 2008 and 2009. It provided us with a challenging operating environment, especially in the carpet industry. But out of all this negativity arises opportunity and we started to witness the formation of partnerships and are enjoying the leveraging capabilities of such partnerships.”
Indeed, through the signing of partnerships with international and local flooring partners, such as Mohawk (USA) and Tiger Tur f (UK), Van Dyck has remained at the forefront of flooring technology in South Africa and continues to lead the market.
“Tiger Tur f is an interesting one,” says Zarrebini. “We are now manufacturing on their behalf in South Africa, providing the African continent , from the sub-Sahara down, with artificial grass for landscapes and sports facilities. In terms of manufacturing, we have embarked on that par tnership. In terms of sales, we have started to partner with a lot of companies, especially in the SADC Region – Zimbabwe, Zambia, Tanzania, Botswana, Namibia – where we have par tnered up with local distributors or localagents and they are pushing our brand into those areas. So, it was a result of the consequence of the slowdown in the economy that forced us to form partnerships with other companies.”
Partnership isn’t the only reason Van Dyck has remained successful, however. Through continuous product innovation, new product launches, and the recolouring of popular existing ranges - to name a few additional initiatives - it has kept its nose in front of its competitors. “That is true,” says Zarrebini.
QUALITY FOCUS
The Van Dyck Carpets factory is based in Durban in KwaZulu-Natal and has SABS ISO 9001:2008 cer tification. SABS ISO 9001:2008 cer t i f icat ion means that al l products and processes meet the strict quality control and standards of the International Standards Organisation administered locally by the South African Bureau of Standards (SABS). “That is very important to us as we look to grow in the future,” says Zarrebini. “We do a lot of testing,” he adds. “Every product is tested by our unique Tor ture Tunnel to ensure that it meets the required performance, durability and safety standards.”
Zarrebini went onto explain that, with environmental issues becoming important again, Van Dyck Carpets has been “upping the ante” in terms of its environmental focus and policy. “Van Dyck Carpets has a Green Policy and Mission Statement that signals a clear commitment to being green,” says Zarrebini, commenting that, on the manufacturing side, the company is making regular, impressive gains in waste minimalisation, energy reduction, the reduction of emissions, reduction in the use of hazardous materials, and the recycling of production waste and old carpets that would otherwise be committed to landfills. “Recycling is an area that is important to us,” he adds. “All production rejects and short ends are converted into rugs or tiles for re-use and resale, and yarn creel ends are used for overlocking of rugs and samples. We have also designed, developed, manufactured and launched Oxygen on Eco-back, South Africa’s first environmentally friendly carpet made from more than 50 percent recycled materials.”
GROWTH MARKETS
Things are looking good for Van Dyck Carpets at the moment and Zarrebini is optimistic about the future. He explained that the company is witnessing gains in most markets, specifically the hospitality industry, which he says is a strong local growth market. Indeed, in the hotel segment alone, a number of new developments have or are opening to support the World Cup, and this is a tremendous opportunity for carpet manufacturers like Van Dyck. “Commercial and residential is also set to grow locally,” says Zarrebini. “As the economy improves, more people have disposable income and that is good for us.”
The advantage for Van Dyck is that customers are looking for carpets that they are familiar with or which offer significant cost savings and performance benefits. “We have the reputation and that matters,” Zarrebini says.
Local opportunities aren’t the only ones Van Dyck is interested in. The company is also looking for international growth. “We have the systems and certifications in place for international success,” he says. “We have a very good local market and we are gaining market share in South Africa, especially on the residential and commercial side of things. We have also increased our market share in the hospitality sector within South Africa; so South Africa is a very important part of our business. Besides that, we have witnessed a number of opportunities springing up in Africa and also beyond that we have started to develop partnerships with companies elsewhere - Australia, New Zealand and South America. There are a lot of opportunities, but it needs a lot of focus and attention. We have been spending a lot of effort developing these markets in these countries because we believe that, due to vertical integration, we can be very competitive in these countries. One stumbling block is the high transport cost, but we have been able to overcome that with the low cost production. That means we are still competitive in those markets.” Export is one market Zarrebini is looking to expand.
