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Business
SA MANUFACTURING GROUP EYES INTERNATIONAL GROWTH AMID GLOBAL SHIFTS
By Eamonn Ryan
Robert Kruger , executive chairman of the HC Group of Companies , and Leon Potgieter , the company ' s CEO , recently shared with RACA Journal their vision for the future of local manufacturing and strategy of organic growth and resilience amid global challenges .
Founded in 2001 , the HC Group has grown exponentially through a focus on innovation , excellence and commitment to its people . HC Group ’ s growth trajectory reflects its commitment to local manufacturing while expanding into international markets . With an annual growth rate of approximately 28 % and projections for a 33 % growth rate over the next five years , the company continues to evolve , balancing job creation in South Africa with global partnerships . While many businesses in South Africa struggle , it stands out as an example of how resilience , adaptability and talent development can lead to success .
A key element of the group ’ s growth has been its focus on organic expansion . Both Kruger and Potgieter emphasise that its success is not tied to acquisitions but to building strong internal teams and capitalising on market opportunities . " Our business is our people . If you acquire the right people , the business follows ," says Kruger . This belief in fostering talent has been central to its long-term sustainability .
The duo also discuss how they ' ve navigated South Africa ' s unique business risks , including political instability and foreign exchange challenges . According to Kruger , businesses must actively mitigate risks and constantly pursue growth to thrive in South Africa . This mindset has propelled HC Group to expand internationally , reducing forex exposure and creating new opportunities .
The group ’ s international ventures have revealed an advantage : agility . Potgieter notes that while South Africa ’ s manufacturing sector is often underestimated , local companies like HC Group can adapt more quickly to market shifts than larger , slower-moving international corporations . " We are much more agile , much more able to make decisions and move forward ," he asserts , emphasising that this flexibility is key in today ' s competitive global market .
Europe , in particular , has shown increasing interest in African businesses that understand the continent ’ s complexities . As traditional markets like the US , Russia and China become more challenging due to political instability and regulatory changes , Africa is emerging as a promising growth region . Potgieter sees this as an ideal opportunity , with investors seeking companies that can tap into the African market and , in turn , export products globally .
HC Group ’ s technological capabilities represent a significant competitive advantage . For instance , the company recently demonstrated its innovative solutions in the Netherlands , earning accolades from international investors for its strong business acumen . Recognising the need for technological development and intellectual property
Robert Kruger , executive chairman of the HC Group of Companies .
Leon Potgieter , CEO of the HC Group of Companies .
( IP ) in South Africa , the Dutch government has partnered with HC Group to enhance technological exchanges . This mutually beneficial relationship supports the development of new IP in South Africa while potentially assembling products in Europe , all while maintaining local manufacturing and jobs .
“ HC Group ’ s ability to deliver high-quality manufacturing solutions positions it as a leader in a market that increasingly prioritises value and practicality ,” says Potgieter .
Both Kruger and Potgieter remain highly optimistic about the future , noting that South Africa offers cost-effective solutions and a workforce willing to tackle challenges . They see Europe ’ s
All images supplied by HC Group
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RACA Journal I April 2025 www . refrigerationandaircon . co . za