• On an upward trajectory

    As a leading investment holding company, the J&J Group looks to smart partnerships and acquisitions for its ongoing success

    Founded in 2000, the J&J Group has grown using a multifaceted growth model, which has included start-up joint ventures, partnerships, and acquisitions of both growth and mature companies.

    The primary goal of the J&J Group is to identify, structure and invest in businesses to the mutual benefit of all stakeholders involved. The group remains steadfast in its pursuit of growing its business, community and government relationships to continue delivering value-creating enterprises.

    Relationships with strategic partners have been a key element in guiding its growth, allowing the group to build a variety of mutually beneficial partnerships and working relationships with companies such as Old Mutual, Rand Merchant Bank, AREVA, Verizon, the Tata Group, Murray & Roberts (VRESAP, UCW), Dr Reddy’s Laboratories, Bombardier, Macquarie Bank and SolaireDirect.

    The J&J Group has been an integral part of numerous development projects

    SECTORS OF INVOLVEMENT
    Transportation
    The J&J Group has a significant stake in the Gautrain Rapid Rail Link (Gautrain), further solidifying its commitment to growing the infrastructure portfolio.

    Gautrain is a private-public partnership (PPP) that provides a fast passenger train service connecting South Africa’s financial capital, Johannesburg with Pretoria (the administrative capital, Tshwane) and OR Tambo International Airport.

    Energy
    An important part of the vision of the group is to support ongoing initiatives that contribute to the development of energy supply and resources in both South Africa and the rest of Africa.

    The J&J Group holds ownership control of Util Labs – an energy technology company that has developed a smart-grid solution involving end-to-end, real-time, bi-directional measurement monitoring and control throughout the low-voltage network.

    Financial services
    The J&J Group has built a presence in financial services through its flagship holding company, Macquarie First South.

    In August 2006, First South Securities concluded a merger with the corporate advisory arm of Macquarie Bank Africa, the global, Australia-based bank, thereby creating Macquarie First South.

    Macquarie First South provides a range of financial services, including a stock-broking service that covers a full research team and a trading and settlement service to institutions, as well as investment banking advisory services. In the latter part of 2015, the J&J Group exited the partnership.

    Healthcare
    The J&J Group entered the healthcare sector in 2004 with the establishment of Venture-pharm, which developed a joint venture partnership with Dr Reddy’s Laboratories, trading in generic medicines. The group exited this investment in 2010.

    Infrastructure
    The J&J Group has spent the past few years steadily growing a pipeline of infrastructure opportunities in South Africa, SADC region, the rest of Africa and the Middle East, with a particular focus on renewable and conventional energy, telecoms and transport infrastructure. Through its partnerships with Areva and Lesedi Nuclear Services, the group has been able to participate in the bid submissions for Eskom’s nuclear power plant programme.

    Adding to its portfolio of infrastructure providers, the group also holds a 50% stake in Kutluano Engineering Consultancy, an engineering consulting and project-management firm that owns EON.

    ICT
    The J&J Group had, until the latter part of 2016, a significant presence in the South African ICT industry. Its principal investment was in TATA Consulting Services South Africa, (TCS SA), which is a major global player that has rapidly expanded its presence in Southern Africa.

    The group has since exited this partnership but has agreed to work with TCS SA on project-by-project basis.

    RENEWABLE ENERGY
    The J&J Group, together with Old Mutual and SolaireDirect, owns two solar farms outside Vredendal and Aurora in the Western Cape.

    These projects are part of the Department of Energy’s Renewable Energy Independent Power Producer Procurement programme (round two) and have already been commissioned, providing a total of 20 MW (10 MW each) to the Eskom grid.

    J&J DEVELOPMENT TRUST
    Good companies make good products. Great companies go further by giving back. The J&J Development Trust is a means to making the world a better place.

    BACKGROUND
    Trading as the J&J Group, Jay and Jayendra (Pty) Ltd is a South African-based investment holding and management company with investments in a select group of companies.

    Over the past 18 years, the company’s targeted investment areas have included road and rail concessions; telecoms; financial services; and conventional and renewable energy. Its most significant investments in PPPs include the following:

    • The Gautrain – a rapid transit system linking South Africa’s financial and legislative capitals (Johannesburg with Pretoria) with OR Tambo International Airport. Consortium members includes Murray & Roberts, Bombardier, Bouyges and SPG.
    • The Vaal River Extension Substation Augmentation Project (VRESAP) was a PPP project designed to transport raw water through a 122 km steel pipeline from the Vaal dam to Secunda. Consortium members included Murray & Roberts, Group 5 and WK Construction.
    • As part of the Protea Parkway Consortium, the J&J Group reached preferred bidder status for the construction, maintenance and operation of the Western Cape N1/N2 toll road.
    • As part of the Prison PPP project, the J&J Group reached ‘best and final offer’ (BAFO) stage.
    • The group also reached BAFO stage on the design, finance, construction, maintenance and operation of South Africa’s Department of Foreign Affairs premises.

    The J&J Group had roots in the IT sector and continued to have a significant presence in the market through its principal investment in TCS SA. The group also had a significant stake in Verizon Business South Africa, a subsidiary of the US-based telco that provides advanced IP, data, voice and wireless solutions to large businesses and governments from around the world.

    The J&J Group has also built a presence in financial services through its flagship holding company, First South Financial Services. In 2006, First South concluded a merger with the corporate advisory arm of Macquarie Bank Africa. The merged company provided a range of services, including stockbroking services that covered a full research team and a trading and settlement service to institutions as well as investment banking services.

    Since its establishment, the J&J Group has built good, mutually beneficial relationships and partnerships with several global companies. These are anchored by Old Mutual, the LSE-listed financial institutions, which is a significant shareholder in the J&J Group.

    Other significant international companies with which the group had concluded business partnerships include Areva, Verizon, Tata Group, Macquarie Bank, Bouyges, Dr Reddy’s Laboratories and Bombardier.

    The J&J Group has a strong group Executive Team comprising Jayendra Naidoo (Chairman), Tladi Ditshego (CEO) and Nazir Alli (Resident Adviser).

    South Wing, The Place
    No. 1 Sandton Drive, Sandton, 2196, P O Box 784738
    Sandton City, Sandton, 2146, South Africa
    Tel: +27 (0)11 301 5000, Fax: +27 (0)11 783 8653
    info@jandjgroup.com
    www.jandjgroup.com