Operational overview

Glodina

Paul Redondi        Joint managing director; Dip. Tex Eng (Bergamo)
Mark Balladon       Joint managing director; BComm (UCT); CA(SA)

Glodina was established as a family business in 1952 and has been the leading manufacturer and distributor of quality terry towels and related products in South Africa ever since. Daun & Cie acquired the company in January 2002. It is the sole supplier to Woolworths and supplies almost all of the other major retailers in South Africa. Glodina is also a major supplier to the hospitality industry and its brands include Glodina, Black Label, Soft Touch and Marathon. Glodina's market share in South Africa is approximately 32%.

The manufacturing plant is situated in Hammarsdale and is ISO 9001 accredited. The plant has almost completed all of the requirements for ISO 14001, which is the international environmental standard. Glodina employs 440 people whose consistent loyalty is reflected in the average length of service of 23 years. The company is sincere in its drive towards employee and economic empowerment. Training and development of staff is the cornerstone of management philosophy and a non-discriminatory relationship continues to be enjoyed with the diverse cultures that comprise the workforce.

Over the last three years, Glodina has consistently improved its financial performance. The management strategy has been to produce luxury niche products marketed under one of the brand names wherever possible. This strategy has meant that Glodina has not been threatened by cheap imports from the Far East and management has avoided competing on price in the bottom end of the market. Management has concentrated on offering the customer base product innovation through design, product appeal through construction (softer and more absorbent products), value for money and superior service. This, together with the strong brand, has helped Glodina grow market share. The design team has consistently monitored international trends to maintain market leadership.

The company has also significantly improved its operational performance in the last three years. This has been achieved by reducing the waste and reject percentage through training and motivation, cost cutting and more effective raw material sourcing. Daun & Cie also introduced a significant amount of capital through a rights issue to invest in new plant and equipment.

Management plans to further improve operational performance in 2005 by investing in training and development and by completing capital projects that began late last year. Glodina intends to improve customer service by cutting down delivery times and improving stock management. The company has recruited an expert from the automotive industry to ensure that this project is successful.

The turnaround at Glodina has been achieved through hard work from management and staff and we are confident that the company will continue to show steady profit growth that is sustainable.

Glodina - Durban