Car & General CEO, Vijay Gidoomal. PHOTO | BELLA OSAKO | NMG
Vijay Gidoomal studied law in the UK and returned to Kenya in 1992. The following year, he joined Car & General and was responsible for establishing operations in
Uganda and Tanzania as managing director.In 1996, he became the CEO and oversaw radical restructuring of the company introducing new product lines, and then went on to set up five distinct business lines spanning automotive and equipment, financial services, agriculture, real estate and manufacturing.
Mr Gidoomal spoke to the Business Daily about the 31-year journey at C&G, with 28 as the CEO and still counting. He talks of the recent launch of electric three-wheelers, what has worked or hasn’t and the art of getting things done through people while ensuring he is empowering the next generation of leadership.
What does the introduction of electric three-wheelers in Kenya mean for the Car & General?
It is a very important step for us. We launched Piaggio three-wheelers in 2002 as one of our major businesses after we restructured the business [in 1996]. This represents another major stepping stone as we transition into the electric vehicles space.
The transition is not going to happen overnight but we feel we can transform the three-wheeler transport from internal combustion engine to electric vehicles. Hopefully, by the end of the year, we will have made a lot of progress.
The passenger electric three-wheeler can go for 145 kilometres on a single charge while the cargo one can do 115 kilometres. That is enough range to cut on charging costs.
We have estimated that the total cost of operating electric three wheelers will result in a saving of about 30-35 percent. It is more expensive to purchase but if you consider the savings on operating, it is significant. More than 60,000 units have been used in India and so there is no doubt that this is a viable deal.
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In 1992, after studying law in the UK, you returned to Kenya and headed to Uganda and Tanzania the following year to lead C&G units in those two markets. Was this always part of the plan when you were studying law?
Coming back was a great move and then after that, the rest was about seeing where opportunities were and trying the most out of it. At that time, it was Uganda and Tanzania.
In 1996, you were at the heart of the major disruption that C&G took by dropping traditional business lines such as tyre retreading and introducing new lines. What was going on in your mind?
If I was to say one thing, it would be that when we always looked at the Asian tigers, we thought about the African lions. That inspired us. That story has not transpired yet.
When you look at many African economies, they have not emulated the growth of the Asian tigers and I am hoping that when I look at the demographics of Africa by 2050 that is an opportunity we cannot afford to let go of. We need to create African lions in the same way the Asians created the Asian tigers.
When I look at the last 20 years, the growth we expected has not been met but we have to keep evolving as a business and as a people.
Not many people can stay in the same organisation for this long. You have been here for over 28 years. How has the experience been and how has this helped in your understanding of the business?
It has been a great journey. It has been an interesting one with phenomenal experience as well. It has had its ups and downs for sure. It is not plain sailing. I think had we not had so many disruptions, it would have been a bit more plain sailing.
We have had so many disruptions from the financial crisis, Covid-19 and all these wars. The ultimate thing is that what I would like to have seen is more growth across the economies because the bigger the economies are, the more resilient your business is.
Read: Car & General issues profit warning on climbing costs
You have helped C&G build about five distinct business lines. What power does this diversity give a business like C&G?
The diversity of our business is what has really helped us. Imagine if we were just in the bodaboda business. Volumes dropped 77 percent. We would have had a problem. The fact that we have other business units puts us in a much stronger position.
Looking at the diversified business lines, with some relatively new, does it sometimes make your 28-year journey as a CEO look like it has just started?
It is just starting. When I look at the C&G business, it looks very much to be at the beginning of the journey in terms of where it is.
→ palushula@ke.nationmedia.com
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