KUALA LUMPUR: The birth of Eversendai Corp Bhd, one of Malaysia’s most successful integrated structural steel turnkey contractors, came about by chance. It is currently in the running for projects worth RM12 billion.
Founder Datuk AK Nathan is neither an engineer nor a construction manager. He was in fact an insurance agent who later went into the printing business, yet he is today the executive chairman and group managing director of Eversendai.
“I am not an engineer, it’s just by chance that I went into construction and eventually learned the trade from the people whom I engaged and employed. And from then on, I single-handedly grew the company into a large entity,” Nathan told The Edge Financial Daily in an interview at his residence here.
Based in Rawang, Eversendai made its debut on the Main Market of Bursa Malaysia last July and has a market capitalisation of some RM1.26 billion.
Besides being an integrated structural steel turnkey contractor, it is also a power plant contractor and it provides mechanical, civil and electrical engineering services.
While it has a modest market capitalisation, Eversendai has a significant footprint internationally, especially in the Middle East. Notably, Eversendai commanded the largest market share of 26.5% based on annual fabrication capacity of structural steel in 2010 in the United Arab Emirates (UAE), according to Frost & Sullivan estimates.
Nathan said the company plans to strengthen its presence in other developing countries despite the current global economic uncertainties.
This is reflected in the five projects Eversendai has in India, which accounted for some 5% of its total revenue for the nine-month period ended Sept 30, 2011 after two years there.
“There are a lot of opportunities out there. We are bidding for various types of infrastructure projects, which is quite a big spread in places like India, Southeast Asia and the Middle East.
“All in all, we have tendered for some RM12 billion worth of projects, which are spread out over three to five years. And in general, based on our past track records, we always get 20% of the jobs we’ve tendered,” said Nathan.
In the serenity of his residence where Japanese koi swim leisurely in a large indoor pond, the 55-year-old recounted how Eversendai made its breakthrough in the 1980s.
It was an interview with Tameshi Yamaki of Nippon Steel Corp for the Proton factory steel erection works in 1983 that spawned the success story of Eversendai.
“During the interview, he looked straight into my eyes and I looked straight back as we talked. He later revealed it was through this that he knew he can trust me, and he
eventually awarded me the job,” Nathan said.
Another major breakthrough followed in 1988, which saw Eversendai making its first venture abroad, clinching the contract for the fabrication and erection of structural steel work for the Singapore Indoor Stadium.
“This is our biggest breakthrough. It is by virtue of working in Singapore that we are able to have the opportunities to work on high rise buildings, with the first being the Hitachi tower and subsequently the 66-storey Republic Plaza,” says Nathan.
Eversendai’s track record brought the company back to its home ground to participate in the high profile Kuala Lumpur Tower job in 1993.
A year later, Eversendai made history with the award of the contract to fabricate and erect the steel structure for Petronas Twin Tower 2, the tallest twin towers in the world.
“It is with that kind of exposure and experience that we are able to showcase ourselves in a big way internationally. It really does help support us to win other jobs with similar profile in the Middle East,” he said
Eversendai did not stop expanding. It later undertook many key landmark projects in the Middle East especially in Dubai, Abu Dhabi, Saudi Arabia and Qatar. In Dubai, it was part of the construction team for various iconic buildings such as the Emirates Towers, Ski Dubai, Rose Rayhaan Rotana Tower, Dubai Mall and Dubai Festival City.
In 2008, Eversendai made its mark again by participating in the erection of the structural steel work (including the steel spire) for the Burj Khalifa, the world’s tallest building at 828m and more than 160 stories high.
“We were able to win that kind of support from clients as we are able to get the job done as what we have promised them. And now, we are the sort of company that clients
come looking for, because of the reputation that we have built and through word of mouth,” said Nathan, crediting his success to the values he picked up while working with the Japanese in the 1980s.
“Safety and timely completion — we have pretty much incorporated these fundamental values into the company, and practised them without fail. I have been emphasising these philosophies to my staff all the while, right from the company’s inception,” he added.
With some 6,800 employees now, Nathan said his vision is for Eversendai to become a world-renowned contractor.
“God will honour my commitment. When I make a commitment, I will deliver. I don’t believe in making empty promises. My staff and team support my vision and what I look towards fulfilling and achieving in the years to come,” he said.
Standing out among its local peers
Eversendai stands out among its local peers for commanding the bulk of its earnings from abroad and for having above-industry average profit before tax margins of 13.5% for the nine months ended Sept 30, 2011.
The company posted net profit of RM83 million on the back of RM720.4 million revenue during the period.
Its Indian and Malaysian operations contributed 5% and 6.5% respectively to its overall revenue, with the remaining coming from the Middle East region.
“The portion (from India) will grow larger. But I believe our major revenue contribution will still come from the Middle East.
“In the meantime, we are also looking at new markets,” said Nathan.
He said one of Eversendai’s strengths is that the company has always been able to look ahead.
“We always look to the future. We try to identify developing countries that possess the opportunities for us to ride on their growth.
“Take India as an example. I very much read it as a plane that is ready to take off.
When the time comes, it will take off. And we have gone in at the right time. When the boom takes off, we will just ride the wave,” said Nathan.
Eversendai is now looking at some new business opportunities via organic growth.
“We have not identified (any businesses) specifically, but we will be looking at expanding our core businesses, which are structural steel, power plant construction as well as civil construction. We are looking at taking on bigger projects,” he added.
Eversendai currently owns four fabrication plants in Hamriyah (Sharjah), Rawang, Doha (Qatar) and Al Qusais (Dubai).
These plants have a combined annual production capacity of 119,000 tonnes.
Eversendai’s earnings visibility looks strong going forward. It has an outstanding order book of RM1.5 billion that will keep it busy over the next three years.
Having grown Eversendai to what it is today, Nathan has every reason to be confident of the company’s prospects in the years to come.
Founder Datuk AK Nathan is neither an engineer nor a construction manager. He was in fact an insurance agent who later went into the printing business, yet he is today the executive chairman and group managing director of Eversendai.
“I am not an engineer, it’s just by chance that I went into construction and eventually learned the trade from the people whom I engaged and employed. And from then on, I single-handedly grew the company into a large entity,” Nathan told The Edge Financial Daily in an interview at his residence here.
Based in Rawang, Eversendai made its debut on the Main Market of Bursa Malaysia last July and has a market capitalisation of some RM1.26 billion.
Besides being an integrated structural steel turnkey contractor, it is also a power plant contractor and it provides mechanical, civil and electrical engineering services.
While it has a modest market capitalisation, Eversendai has a significant footprint internationally, especially in the Middle East. Notably, Eversendai commanded the largest market share of 26.5% based on annual fabrication capacity of structural steel in 2010 in the United Arab Emirates (UAE), according to Frost & Sullivan estimates.
Nathan says his vision is for Eversendai to become a world renowned contractor.
Nathan said the company plans to strengthen its presence in other developing countries despite the current global economic uncertainties.
This is reflected in the five projects Eversendai has in India, which accounted for some 5% of its total revenue for the nine-month period ended Sept 30, 2011 after two years there.
“There are a lot of opportunities out there. We are bidding for various types of infrastructure projects, which is quite a big spread in places like India, Southeast Asia and the Middle East.
“All in all, we have tendered for some RM12 billion worth of projects, which are spread out over three to five years. And in general, based on our past track records, we always get 20% of the jobs we’ve tendered,” said Nathan.
In the serenity of his residence where Japanese koi swim leisurely in a large indoor pond, the 55-year-old recounted how Eversendai made its breakthrough in the 1980s.
It was an interview with Tameshi Yamaki of Nippon Steel Corp for the Proton factory steel erection works in 1983 that spawned the success story of Eversendai.
“During the interview, he looked straight into my eyes and I looked straight back as we talked. He later revealed it was through this that he knew he can trust me, and he
eventually awarded me the job,” Nathan said.
Another major breakthrough followed in 1988, which saw Eversendai making its first venture abroad, clinching the contract for the fabrication and erection of structural steel work for the Singapore Indoor Stadium.
“This is our biggest breakthrough. It is by virtue of working in Singapore that we are able to have the opportunities to work on high rise buildings, with the first being the Hitachi tower and subsequently the 66-storey Republic Plaza,” says Nathan.
Eversendai’s track record brought the company back to its home ground to participate in the high profile Kuala Lumpur Tower job in 1993.
A year later, Eversendai made history with the award of the contract to fabricate and erect the steel structure for Petronas Twin Tower 2, the tallest twin towers in the world.
“It is with that kind of exposure and experience that we are able to showcase ourselves in a big way internationally. It really does help support us to win other jobs with similar profile in the Middle East,” he said
Eversendai did not stop expanding. It later undertook many key landmark projects in the Middle East especially in Dubai, Abu Dhabi, Saudi Arabia and Qatar. In Dubai, it was part of the construction team for various iconic buildings such as the Emirates Towers, Ski Dubai, Rose Rayhaan Rotana Tower, Dubai Mall and Dubai Festival City.
In 2008, Eversendai made its mark again by participating in the erection of the structural steel work (including the steel spire) for the Burj Khalifa, the world’s tallest building at 828m and more than 160 stories high.
“We were able to win that kind of support from clients as we are able to get the job done as what we have promised them. And now, we are the sort of company that clients
come looking for, because of the reputation that we have built and through word of mouth,” said Nathan, crediting his success to the values he picked up while working with the Japanese in the 1980s.
“Safety and timely completion — we have pretty much incorporated these fundamental values into the company, and practised them without fail. I have been emphasising these philosophies to my staff all the while, right from the company’s inception,” he added.
With some 6,800 employees now, Nathan said his vision is for Eversendai to become a world-renowned contractor.
“God will honour my commitment. When I make a commitment, I will deliver. I don’t believe in making empty promises. My staff and team support my vision and what I look towards fulfilling and achieving in the years to come,” he said.
Standing out among its local peers
Eversendai stands out among its local peers for commanding the bulk of its earnings from abroad and for having above-industry average profit before tax margins of 13.5% for the nine months ended Sept 30, 2011.
The company posted net profit of RM83 million on the back of RM720.4 million revenue during the period.
Its Indian and Malaysian operations contributed 5% and 6.5% respectively to its overall revenue, with the remaining coming from the Middle East region.
“The portion (from India) will grow larger. But I believe our major revenue contribution will still come from the Middle East.
“In the meantime, we are also looking at new markets,” said Nathan.
He said one of Eversendai’s strengths is that the company has always been able to look ahead.
“We always look to the future. We try to identify developing countries that possess the opportunities for us to ride on their growth.
“Take India as an example. I very much read it as a plane that is ready to take off.
When the time comes, it will take off. And we have gone in at the right time. When the boom takes off, we will just ride the wave,” said Nathan.
Eversendai is now looking at some new business opportunities via organic growth.
“We have not identified (any businesses) specifically, but we will be looking at expanding our core businesses, which are structural steel, power plant construction as well as civil construction. We are looking at taking on bigger projects,” he added.
Eversendai currently owns four fabrication plants in Hamriyah (Sharjah), Rawang, Doha (Qatar) and Al Qusais (Dubai).
These plants have a combined annual production capacity of 119,000 tonnes.
Eversendai’s earnings visibility looks strong going forward. It has an outstanding order book of RM1.5 billion that will keep it busy over the next three years.
Having grown Eversendai to what it is today, Nathan has every reason to be confident of the company’s prospects in the years to come.
