Ekhaya Auto-trimming and upholstry (pty) ltd

Business Location: Township
Province KwaZulu-Natal
Branch: Amajuba
Business Start Date:
Busniess Type: Company

Business Dynamics and Challenges

Business Activities: Ekhaya Auto Trimming and Upholstery is a 100% black-owned business, situated in Section 5 Madadeni Township, Newcastle (KwaZulu-Natal). The business is owned by Mr Mthandeni Khumalo and operates in the Clothing & Textile Sector, specializing in leather upholstery services to a large clientele, mainly the taxi industry, other small businesses and house-hold clients. The company currently turns over R128,000.00 annually and currently employs 3 full-time staff. Mr Khumalo took over the business from his late father in 2018.The business had been operating informally for more than 20 years. Mr Khumalo acquired skills through working in the business with his father, then later studied at Majuba TVET to obtain his N5 (Carpentry) qualification. Due to the large demand for services, Mr Khumalo decided to revive the business in order to service the existing clients and generate income.
Challenges/Needs: Mr Khumalo approached Seda to assist him with formalizing his business as well as other interventions that will contribute to the growth of his operations. Amongst the challenges identified, were that the client had no compliance documentation and thus was not able to service company vehicles which resulted in loss of big clients as well as to apply for funding to purchase additional tools and expand operations. Additionally, the client required assistance with training that will enable him to operate efficiently.

Intervention Insights and Results

Intervention Details: Seda conducted an Assessment on the business to identify the appropriate interventions. After completing these assessments, Seda decided to assist with the following interventions:

• CIPC Company Registration
• Productivity Training
Outcome Details: As a result of Seda's intervention, Ekhaya Auto Trimming (PTY)LTD was registered with CIPC and obtained the necessary compliance documentation. Subsequently, he was able to apply for IMEDP (DSBD Programme) for grant funding of which the outcome is still pending. The client also attended Productivity Training which assisted him with the requisite knowledge to improve business operations. Mr Khumalo was able to acquire bigger clients such as the local taxi association as well as several local businesses around Madadeni as a result of being compliant through Seda’s intervention.
The company achieved the following improvements:

• Turnover increased by 45% from R38,000.00 to R83,000.00 (Improvement Assessment Period), a significant turnaround considering the challenges the client faces
• The company increased employment from one (01) person to three (03) full time people employed, to fulfil the volumes of orders that Mr Khumalo is getting.

Client Feedback

Client Comments: " Seda's involvement in my business has been positive as it has resulted in significant growth to my business. I look forward to working with Seda to grow my business. "
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