Davis & Shirtliff Celebrates its 70th Anniversary
By Alec Davis
Davis & Shirtliff, the Region’s leading Water and Energy equipment supplier will soon be celebrating a major milestone, its 70th Anniversary, an achievement that is most unusual for any organisation, especially one that has the same family shareholding and essentially the same market focus since its founding. There are few companies in Kenya with this claim and D&S is therefore extremely proud of the achievement with various celebrations being held in May to mark it.
The company was founded in 1946 by EC (Eddie) Davis and FR (Dick) Shirtliff, Mr Davis having recently left the army with a gratuity which he spent buying a stake in a small plumbing business he had worked with as a contractor. Mr Shirtliff soon joined him and the initial expertise was provided by Italian ex-prisoners of war! The company was based at Westlands (now the Nyota Petrol Station site) and grew rapidly as the country recovered after the war focusing on boreholes, water supplies and the coffee industry. Notable early projects included the water supply for Karen Estates, the entire water supply infrastructure until the mid-60’s being installed by D&S. Also other estates supplies including Gigiri, Kitisuru, Kibagare, Rosslyn and later Runda were also D&S projects.
D&S grew with the country and in the mid-1950’s the offices moved to larger new premises at the present location in the Industrial Area. An added activity was swimming pools, both residential and commercial, and many were built that are still in use today including Limuru Girls School, Loreto Convent, Kenya High School and the YMCA. The company also installed water treatment plants at all the Kengen Tana River hydro power stations as well as at the many new lodges that were constructed then. In 1970 partner Dick Shirtliff retired and his shareholding was purchased by a long serving staff member, Devji Shingadia. He and Eddie Davis then ran the company, retiring CEO Alec Davis joining in 1976. Eddie Davis passed away in 1982 at the age of 79 and Alec then assumed his shareholding, in 1990 purchasing Shingadia’s shareholding as well. The 70’s and 80’s saw slow but steady growth as the country grappled with various economic and political problems, though there was a particular focus on building the pump business, notably Grundfos and Davey that were introduced in the mid-1960’s and also additional premises space was obtained through the purchase of two adjacent plots.
1993 was a significant year for both Kenya and D&S as economic liberalisation occurred and this was the catalyst for the company’s rapid growth since. It was also the year that Pedrollo products were introduced, now the Group’s largest supplier. These two developments enabled a distribution strategy to be introduced as supply constraints were removed and also establishment of the branch network, which is now so important for the Group. Initially Kenya branches in Westlands, Eldoret and Kisumu were opened and between 1995 and 2000 subsidiaries in Uganda, Tanzania and Rwanda were established. Also the pump business grew hugely with Pedrollo and new solar and power generation activities were established.
Since the Millennium, growth has greatly accelerated. Major initiatives have included a complete re-development of the Industrial Area site and the expansion into adjacent plots, the opening of subsidiaries and associate companies in Zambia, Ethiopia and South Sudan, the establishment of a branch network with new ones about to open in Ongata Rongai, Narok, Kitui, Mombasa Downtown, Jinja and Lusaka Downtown, introduction of the successful Dayliff pump range as well as several new international suppliers including Lorenz, Kohler and DAB and a huge expansion of the product range. The numbers are impressive, over the years nearly 1 Million pumps, more than 15,000 pool filters and 7 million kW of solar panels having been supplied and 7000 boreholes equipped. Staffing has also grown correspondingly and the D&S Group now employs over 600 permanent staff operating from 48 sites. Equipment has been supplied to every type of user, industry and institution imaginable and it is true to say that most Kenyans will regularly benefit from a Davis & Shirtliff product in the course of their daily activities. When that product is water the benefit is considerable and the company proudly and rightly claims that it has been improving people’s lives for 70 years.
Today D&S is a thoroughly modern and innovative company that has been crafted by its long history though has its focus firmly on the future. The product range has hugely expanded with a focus on six market segments – Water Pumps, Boreholes, Swimming Pools, Solar equipment, Water Treatment and Power Generation. Though much equipment is imported the Company is a significant manufacturer making fibre-glass products, its distinctive yellow pool filters being especially popular, as well as fabricated steel items and it also assembles a wide range of water related equipment. A recent investment has been the establishment of a control panel manufacturing unit with a capacity of over 1000 panels a year. The present focus is ‘Leadership Through Technology’ and many new interesting products have been introduced including locally manufactured Reverse Osmosis and Ultra Filtration plants, variable speed pump sets, remote monitoring controllers and Solar power generating systems. Service is another important priority for the Group and its large vehicle fleet is a common sight on Kenya’s roads. The Company is also proud of its IT resources with a centralised ERP system that is used regionally, all system development being done in-house. Other functions include a highly resourced Supply division to handle the Group’s up to KShs1Bn stockholding, which also carries out clearing, and a well-resourced training department that trains both staff and customers. A recent innovation has been live streaming so training sessions are relayed throughout the Group.
A particular Group focus has always been the availability of adequate physical facilities and the Dundori Rd site has been in a state of almost permanent reconstruction for the past 20 years. The most recent development has been the construction of a 1,500m2 four-storey block that will provide additional office space as well as a 180 seat canteen and a fully equipped Training facility. This is being inaugurated by special guest Abbas Gullet, Secretary-General of the Kenya Red Cross during the Anniversary celebrations. Another recent investment is a similar sized HQ in Mombasa for the Coast Region. This was opened in February.
It is often said that success is transitory and sometimes unsustainable, though D&S has managed to maintain unbroken growth for an exceptional period of time. This has been achieved by commercial focus, manageable ambition, consistency of ownership and, importantly, living the values of Quality, Integrity and ‘Altiora Peto’, which translates to embracing continuous change. The other key factor that has created this success story is the unusually harmonious staff relations and enormous staff commitment and motivation since the company’s founding. This has been achieved by recruitment and training of consistently high calibre people and also by enlightened, generous and fair employment policies that have enabled people to reach their potential with rewarding jobs and enjoy a secure future. Over 90 staff have completed 25 years’ service and also many alumni have progressed to senior management and technical positions in the country’s water sector. D&S has certainly played a significant role in developing the human resource base of Kenya’s water industry.
D&S is now a widely recognised brand in the region and is proud of the contribution it has made. Of course the anniversary is just a moment in a journey and the Group continues to grow with a number of initiatives in hand and great plans for the future. Alec Davis is retiring from executive responsibilities from the end of May to assume the role of Chairman and the executive team under new CEO David Gatende will drive this growth. The company is also fortunate that the third generation Davis’s, Edward and Henry, have joined the business, so continuity is assured. The Group continues to expand in product and markets and looks forward to keep serving the region with essential products that certainly improve peoples’ lives and also being a several hundred million US$ company by the end of the next decade!
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Davis and Shirtliff: Celebrating 70 years of success
By Anthony Kiganda
With a long history of successful projects behind it, Davis and Shirtliff has established itself as the Region’s leading Water and Energy equipment supplier by paying close attention to both the diversity of its offering and commitment to clients and partners.
With roots dating back more than half a century, Davis and Shirtliff has grown to be the region’s leading Water and Energy equipment supplier. Since its inception in 1946, the company has grown continuously and built a reputation for quality and professionalism. As the Group celebrates its 70th anniversary, it boasts of a long journey that has been full of success.
Today, Davis and Shirtliff is a modern and innovative company that has been crafted by its long history with a firm focus on the future. The product range has over the years expanded with a focus on six market segments – Water Pumps, Boreholes, Swimming Pools, Solar equipment, Water Treatment and Power Generation.
Though much equipment is imported, the Company is a significant manufacturer making fibre-glass products, its distinctive yellow pool filters being especially popular, as well as fabricated steel items and it also assembles a wide range of water related equipment
With a diverse customer base and a large product offering, Davis and Shirtliff has emerged as a true leader in its field. Over the years, the firm has developed a wide customer base that includes the public sector, tourism, manufacturing, agriculture and the building industry and of course many private clients. Its core strength lies in its experience and competence coupled with its highly professional workforce.
“1993 was a significant year for Davis and Shirtliff. The economic liberalisation in Kenya that year was a major catalyst for the company’s rapid growth. It was also the year that Pedrollo products were introduced,” says Alec Davis the group chief executive of Davis and Shirtliff.
“These two developments enabled a distribution strategy to be introduced as supply constraints were removed and also establishment of the branch network, which is now so important for the Group.”
Between 1995 and 2000 subsidiaries in Uganda, Tanzania and Rwanda were established. Also the pump business grew hugely with Pedrollo and new solar and power generation activities established. Key to the powerful story behind Davis and Shirtliff is innovation and technology, a recent example being the establishment of a control panel manufacturing unit with a capacity of over 1000 panels a year.
“Our current focus is on leadership through technology. As a result, many new interesting products have been introduced including locally manufactured Reverse Osmosis and Ultra Filtration plants, variable speed pump sets, remote monitoring controllers and Solar power generating systems,” reveals Davis.
Service is another important priority for the Davis & Shirtliff Group and its large vehicle fleet is a common sight on Kenya’s roads. The Company is also proud of its IT resources with a centralised ERP system that is used regionally, all system development being done in-house. Other functions include a highly resourced Supply division to handle the Group’s up to KShs1Bn stockholding, which also carries out clearing, and a well-resourced training department that trains both staff and customers. A recent innovation has been live streaming so training sessions are relayed throughout the Group.
Major initiatives have included a complete re-development of the Industrial Area site and the expansion into adjacent plots, the opening of subsidiaries and associate companies in Zambia, Ethiopia and South Sudan, the establishment of a branch network with new ones about to open in Ongata Rongai, Narok, Kitui, Mombasa Downtown, Jinja and Lusaka Downtown, introduction of the successful Dayliff pump range as well as several new international suppliers including Lorenz, Kohler and DAB and a huge expansion of the product range. There has also recently been considerable premises investment including a new building at Mombasa to support its Coast large business and a new office building at its Dundori Rd HQ which will include canteen and Training facilities.
The success story of Davis and Shirtliff has been based on commercial focus, manageable ambition, consistency of ownership and, importantly, living the values of Quality, Integrity and ‘Altiora Peto’, which translates to embracing continuous change.
The other key factor that has created success story behind Davis and Shirliff is the harmonious staff relations and enormous staff commitment and motivation since the company’s founding. This has been achieved by recruitment and training of consistently high caliber people and also by enlightened, generous and fair employment policies that have enabled people to reach their potential with rewarding jobs and enjoy a secure future.
After being at the helm of the firm as Group CEO for over 25 years several years, Alec Davis is retiring from executive responsibilities from the end of May 2016 to assume the role of Chairman handing over to his long-serving deputy David Gatende.
The company is also fortunate that the third generation Davis’s, Edward and Henry, have joined the business, so continuity is assured. The Group continues to expand in product and markets and looks forward to keep serving the region with essential products that certainly improve peoples’ lives and also being a several hundred million US$ company by the end of the next decade.
The Group is also proud of being a key contributor to the Kenyan economy though the large tax payments it makes. It also boasts of major exports of its products to the surrounding countries and also the extensive training investment it has made that has benefited both the Company and also the wider regional water industry.
“Looking into the future, Davis and Shirtliff will continue to grow through the contribution of its highly committed staff and also through constant innovation and investment to remain the market standard bearer. We have a very strong brand and a good business model and we face the many uncertainties of the future with great confidence,” concludes Alec
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Alec Davis, outgoing Chief Executive Officer (CEO) of Davis & Shirtliff
By JAMES WANZALA
Tell us the story behind formation of Davis & Shirtliff?
Davis &Shirtliff (D&S) was founded in 1946 by Eddie Davis and Dick Shirtliff. Mr Davis had just left the army with a gratuity which he spent buying a stake in a small plumbing business he had worked with as a contractor.
Mr Shirtliff soon joined him and the initial expertise was provided by Italian ex-prisoners of war.
The company was based at Westlands (now the Nyota Petrol Station site) and grew rapidly as the country recovered after the war focusing on boreholes, water supplies and the coffee industry. Notable early projects included the water supply for Karen Estates, the entire water supply infrastructure until the mid-60’s being installed by D&S.
How does it feel steering the company for 25 years until achieving 70 years of existence?
I feel proud having made a contribution since the business we are in has improved people’s lives for the past 70 years through provision of clean water.
We have now sold nearly 1 million water pumps so far. We lead the industry and have trained people in water technology not only those that work in our company but also in other private and public companies.
It is true to say that most Kenyans will regularly benefit from a Davis & Shirtliff products in the course of their daily activities.
How has been the company’s management changed and location grown from Westlands to the current location?
It grew with the country and in the mid-1950s the offices moved to larger new premises at the present location in the Industrial Area.
In 1970 partner Dick Shirtliff retired and his shareholding was purchased by a long serving staff member, Devji Shingadia.
He and Eddie Davis then ran the company, I joined it in 1976. Eddie passed away in 1982 at the age of 79 and I then assumed his shareholding, in 1990 purchasing Shingadia’s shareholding as well and became its CEO.
1993 was a significant year for both Kenya and D&S as economic liberalization occurred and this was the catalyst for the company’s rapid growth since.
Describe how has been the diversification since the 70s and currently including revenue growth?
The 70’s and 80’s saw slow but steady growth as the country grappled with various economic and political problems, though there was a particular focus on building the pump importation business, notably Grundfos and Davey that were introduced in the mid-1960’s.
In the 90s we started our solar and generator activities, which we are still doing up to date. Today, our group revenue stands at Sh7 billion per year.We now have subsidiaries in Uganda, Tanzania, Zambia, Ethiopia, Rwanda, and South Sudan and now looking to venture into DRC Congo.
The whole group has 600 employees with 450 in Kenya with twenty eight branches all over the country. Recent branch openings include Narok, Kitui, Ongata Rongai and Mombasa Downtown.
What about the product range today?
The product range has hugely expanded with a focus on six market segments – water pumps, boreholes, swimming pools, solar equipment, water treatment and power generation. Though much equipment is imported the company is a significant manufacturer making fibre-glass products, its distinctive yellow pool filters being especially popular, as well as fabricated steel items and it also assembles a wide range of water related equipment.
What has been the secret behind the success of Davis &Shirtliff for all those years?
Consistency of management through successful changes where necessary. Progressive but not over ambitious aspirations, living the values of quality, integrity and ‘Altiora Peto’, which translates to embracing continuous change and finally harmonious staff relations and enormous staff commitment and motivation since the company’s founding.
As you retire end of May, will you hand over the management to your children or what plans do you have?
No, the new CEO David Gatende, a Kenyan, will drive this growth. I do not intend to retire from work, rather change my focus and become involved in other activities while still retaining an involvement with Davis & Shirtliff. I am also the chairman of Gertrude Children Hospitals and want to look for new business opportunities for the company because as a CEO one is absorbed with the day to day routines and hence lack time for such.
Has Kenya’s real estate sector been also a driver of the growth of the company’s fortunes?
Of course yes, real estate is symptomatic of the economy’s growth. Most homes in Nairobi have our products, either a swimming pool, water pump, generator or any other product.
Tell us abit of yourself, education, family hobbies?
I was born in Kenya in 1950 and went to St. Mary’s School, Nairobi and later to UK for secondary education. I then completed an engineering degree at Loughborough University followed by an MBA at Manchester Business School returning to settle in Kenya in 1976. I am a married and the father of two sons who both work in the business. I enjoy swimming for fitness and also have an interest in classic cars.
Tell us more abit of history about your family?
My grandfather, also Alec Davis, was among the few first Europeans to settle in Kenya well before WW1. He was a journalist and owner of the Leader newspaper, which was based at the current Leader Building on Moi Avenue, Nairobi. The Leader became The East African Standard that later evolved into The Standard. He also owned the Theatre Royal, now Cameo Cinema on Kenyatta Avenue, Nairobi.
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Ends.
Alec Davis, outgoing Chief Executive Officer (CEO) of Davis & Shirtliff
By GITAHI NGUNYI, The People Daily
Alec Davis may not be a familiar name outside engineering circles. But Davis & Shirtliff, the firm he inherited 34 years ago from his father is a household name in the water business. The firm is this week celebrating its 70th anniversary since it commenced operations.
Started in 1946, Davis & Shirtliff has always been under the management of members of the Davis family; starting with family patriarch Eddie Davis and then Alec who took over as chief executive after his father’s demise in 1982.
That will be the case until end of this May when Alec, when will leave the management of the company that distributes water and energy equipment to an outsider. This month he is completing the process of handing over to his anointed successor David Gatende who is currently his deputy.
What makes Alec’s exit from the management of his company unique is the fact that Davis & Shirtliff shareholding has not changed at all. The company’s shareholding is still firmly in hands of Alec’s family. Then there is the fact that his two sons work in the company. Traditionally in Kenya, firm owners hang on to management of the companies they own until their bodies give in. And then when they become weak, running of their businesses almost automatically goes to the spouses or children.
So why did Alec, who has grown the business from the relatively small operation he inherited to a multinational with high revenues, break the tradition of Kenya’s family owned businesses by handing over management to a chief executive who’s an outsider?
In an interview with People Daily Alec who will now take a less strenuous role of company Chairman explained the thinking behind his decision to leave the company under an outsider.
“My sons have to prove that they have what it takes to run the business before I can hand it over to them. Of course they are competent and I am sure they will rise to run the business in a few years’ time when they get enough experience” he explained.
Alec says his exit from the executive role in Davis & Shirtliff is a carefully planned succession plan aimed at avoiding the fate of many family owned businesses which fall soon after the patriarch is no longer around.
“You know, the true measure of a person’s success is how successful a business long after you are gone. If a business collapses when the owner dies, then it’s obvious that the succession was not thought through. The problem here is that many Kenyan elites do not plan their succession process and they just leave chaos behind. You have to plan these things because there are many people depending on them. At Davis & Shirtliff we have 600 staff members, there are hundreds of casual staff and their families, and then there are our stockists; I mean there are thousands of people who depend on this company for livelihood. Therefore you have to make sure there is continuity long after you have exited the scene. Of course it is easier in a small family like ours as opposed to big extended families with multiple wives who complicate the process,” Says Alec.
In a closed shareholding like we are, there are few opportunities for wrangling. In our case, the management team is not just Gatende. It is a team. We are well structured and a very professionally managed business. The question of succession is very important for both public companies and family business and it has to be well managed. The chief executive will always report to the board and the board has to give the CEO a performance criteria. If he performs fine, and if he doesn’t a new chief executive is appointed. The whole issue of conflict entirely depends on how the process of succession is managed. But if you a chaotic process then you have a recipe for chaos in the business,” he notes.
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