Major multinational organisations – particularly those whose growth has been achieved through strategic acquisitions and purchases – strive to ensure that each new addition ideally adds value to the rest of the group, so that ultimately the parent company remains greater than the sum of its parts. Dynamic teamwork, streamlined interactions and productive synergies underpin the proliferation of some of the world’s largest conglomerates. However, the desire to attain strength through synergies does not solely lie in the domain of the private sector, as securing efficiency and optimum results through teamwork also permeates the holding entities in charge of Algeria’s public institutions.
One such proponent of teamwork is SGP CABELEQ. As overall owner of market leaders in electrical components such as Electro-Industries and ENPEC, state-owned CABELEQ is a key participant in some of the most strategic areas within Algerian industry. ENPEC specialises in batteries for the automobile industry, while Electro-Industries produces electric motors, alternators, transformers and generators. In addition, CABELEQ also controls businesses in related sectors, such as the provision of electrification services through its subsidiaries REELEC and AL ELEC. As a united group whose components complement and feed one another, CABELEQ is therefore able to develop productive alliances among its different divisions, and thereby enhance business opportunities for each unit.
Aziza Boukaoula, President of CABELEQ, says, “We are all in contact: we have companies producing, others installing, others in charge of maintenance, so we can participate in tenders by bringing together a number of our firms. We can get REELEC to produce and install generating equipment, working in collaboration with Electro-Industries and SORELEC. These companies have years of experience working in close collaboration.”
Combining efforts is also essential to other divisions of CABELEQ, including INATEL and RETELEM. Operating in the vital information and communication technology (ICT) sector, these companies provide crucial telecom services ranging from the manufacture (RETELEM) and installation (INATEL) of switchboards and telecom exchange systems, to the development of telecom and IT networks and electronic surveillance systems. The advantages of collaboration have been evidenced by the resulting further synergies with other branches of CABELEQ, such as SITEL and INFRATELE, which provide nationwide and urban telephone networks.
We want to move into the solar battery sector. ENPEC has already made a start... Aziza Boukaoula,
President of SGP CABELEC |
In the Algerian industrial sector, the strategy of sub-contracting and cooperation is encouraged by the government and exists even between different state-owned enterprises (referred to in Algeria as SGPs). Sonelgaz has officially approved Electro-Industries power transformers (and have also expressed an interest in investing in the manufacturer), while white-goods manufacturer INDELEC uses CABELEQ cables in all its projects.
Despite these arrangements, and the group’s market-leading positions in many sectors, CABELEQ is keen to attract foreign partners. Interested parties will be pleased to note that the procedure for forming partnerships has been simplified: SGPs can now enter directly into contact with potential partners without a tender, and have the full freedom to negotiate, before sending the project off for final approval.
“Electro-Industries is the leader in the automobile battery sector, but we are not able to supply the whole market for the automobile industry. There are 1.5 million cars manufactured in Algeria annually, and 250,000 imported, so there is additional market share to aim for – which is why Electro-Industries has begun to look for a partnership in order to be able to supply 100 per cent of the market, using ENPEC products,” says Mrs Boukaoula.
Electro-Industries’ objective is to create a joint venture, on a 51/49 basis. “We are planning to expand the company, and manufacture more high-power transformers (up to 2000 kVA capacity). We are looking for a partner with a worldwide reputation, who can bring us its technical skills. Money is not our concern, but we are looking for the transfer of technological, management and training know-how. We produce a maximum of two high-power transformers per year, and the remainder have to be imported. There is already demand from companies such as Sonelgaz,” explains Mrs Boukaoula, who is also looking for partnerships to help produce large-capacity motors.
Such an arrangement would not be new to CABELEQ. The group already has many years’ experience working with foreign companies, and has been part of SITEL since the 1990s – one of the first major partnerships formed outside of the oil and gas sector in Algeria.
SITEL was established in 1990 as a financial and technical joint venture with the support of the Ministry of Postal Services and ICT, for the manufacture and installation of new telephone exchanges for Algerie-Telecom, the national public telephone company. This partnership, where the international partner holds the largest individual stake, is comprised of Swedish firm Ericsson (35 per cent), with SGP CABELEQ (20 per cent), ENTC (20 per cent) Sonatite (15 per cent) and the Algerian Exterior Bank (10 per cent) representing the Algerian side.
Since its inception, SITEL has produced and installed 2.25 million lines using Ericsson AXE10 technology at around 1,200 sites, and today it is in the process of connecting another 800 remote areas. As a result of its work, the landline network has increased to more than 3 million lines. The group aims to modernise and adopt new technologies such as optical fibre in order to recapture the domestic market, which has largely been overtaken by competition from imported products.
To diversify its activities, SITEL sells and operates GSM stations in the north of Algeria and also provides internet access services. Some 500,000 GSM lines will be developed for Algeria-Telecom and SITEL is soon to launch its own mobile handset on the Algerian market, with an initial production of 100,000 units a year.
The company also exports its know-how and acts as an engineering consultant in Africa, Middle East and China for the Ericsson group. It has maintained a leading position – almost a monopoly – in Algeria.
SITEL’s CEO Amin Baghli advises potential investors to look at Ericsson’s example and says, “If you really commit yourself, you will succeed in Algeria; don’t think only pure business, but come also to generate employment – that has been Ericsson’s philosophy and that is why have they have succeeded so well.”
transfer of technological, management and training know-how. We produce a maximum of two high-power transformers per year, and the remainder have to be imported. There is already demand from companies such as Sonelgaz,” explains Mrs Boukaoula, who is also looking for partnerships to help produce large-capacity motors.
Such an arrangement would not be new to CABELEQ. The group already has many years’ experience working with foreign companies, and has been part of SITEL since the 1990s – one of the first major partnerships formed outside of the oil and gas sector in Algeria.
SITEL was established in 1990 as a financial and technical joint venture with the support of the Ministry of Postal Services and ICT, for the manufacture and installation of new telephone exchanges for Algerie-Telecom, the national public telephone company. This partnership, where the international partner holds the largest individual stake, is comprised of Swedish firm Ericsson (35 per cent), with SGP CABELEQ (20 per cent), ENTC (20 per cent) Sonatite (15 per cent) and the Algerian Exterior Bank (10 per cent) representing the Algerian side.
Since its inception, SITEL has produced and installed 2.25 million lines using Ericsson AXE10 technology at around 1,200 sites, and today it is in the process of connecting another 800 remote areas. As a result of its work, the landline network has increased to more than 3 million lines. The group aims to modernise and adopt new technologies such as optical fibre in order to recapture the domestic market, which has largely been overtaken by competition from imported products.
To diversify its activities, SITEL sells and operates GSM stations in the north of Algeria and also provides internet access services. Some 500,000 GSM lines will be developed for Algeria-Telecom and SITEL is soon to launch its own mobile handset on the Algerian market, with an initial production of 100,000 units a year.
The company also exports its know-how and acts as an engineering consultant in Africa, Middle East and China for the Ericsson group. It has maintained a leading position – almost a monopoly – in Algeria.
SITEL’s CEO Amin Baghli advises potential investors to look at Ericsson’s example and says, “If you really commit yourself, you will succeed in Algeria; don’t think only pure business, but come also to generate employment – that has been Ericsson’s philosophy and that is why have they have succeeded so well.”
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