Business

Saturday July 11, 2009

Your 10 questions


Eversendai Corp Sdn Bhd MD Datuk A.K. Nathan fields the 10 questions posed to him by our readers.

How did you get started in the structural steel industry? William Lee, Seremban

I started by selling insurance and later got involved in a printing business, which was what I had wanted for a career. By chance, I went into the construction business in 1982 with the Dayabumi project.

‘Man of steel’ is a good monicker for Datuk A.K. Nathan. Starting from scratch, he has built Eversendai Corp Sdn Bhd, a structural steel contractor, into an international player that has been involved in highprofile projects such as the Petronas Twin Towers and the Burj Al Arab hotel. Last November, he was named the Ernst & Young Malaysian Entrepreneur Of The Year.

I built Eversendai Corp from zero, entering the business with no knowledge and experience. I am not an engineer. I have no degree. I spent most of my time on the jobsite, working alongside my workers and Japanese engineers to learn the trade and develop myself.

In 1983, I met one Tameshi Yamaki of Nippon Steel Corp for the Proton factory steel erection works. During the interview, he looked straight into my eyes and I did the same while talking.

A few days later, Mr Yamaki came to my office and awarded the contract to me. I was surprised as I did not have an established track record and he did not know me well. I was young then, only 27. I was left wondering. After the project started a month later, I accompanied him to the airport as he was leaving for Tokyo on business. After he had checked in, we sat together for a drink. I asked why he had offered me the job. He said: “Nathan, do you remember when I first met you? I looked straight into your eyes and you looked back into mine and your eyes did not run. From there, I knew I can trust you.” I was stunned.

Through sheer perseverance, I tackled the intricacies of the business to a level where I astounded engineers and professionals with my innovative construction methodology, using my common sense.

It’s clear that you worked very hard to get Eversendai to where it is now. What do you do when you’re not working? Samad Mohd Ariff, KL

Nowadays, I am busy either with social work or spending long hours preparing training or presentation materials for my talks, which I deliver frequently. I spend about 70% of my time away from home on business.

I am a visionary and do a lot of thinking to map out my plans for Eversendai. I enjoy the calmness of my home with my Japanese koi. I do play golf, which I enjoy very much, and I also spend time with my very close friends.

What’s the story behind your company’s Japanese-sounding name, Eversendai? Kelly, Taiping

In 1984, in a conversation with Mr Yamaki, who had given me the opportunity to work on the Proton factory, I asked him where in Japan he came from. He said Sendai. I liked the sound of the name and asked about the meaning. He said it meant “thousands of generations”. I liked that, and I added the word ‘ever’ to make it Eversendai. Today Eversendai is a very well known brandname in the construction industry, locally and internationally.

Of the many projects your company have taken part in, which one had the most impact on your business? T C Goh

The Proton factory project was my biggest breakthrough. It was when I learned about the Japanese work culture, which I have incorporated into my management system.

The Singapore indoor stadium project in 1988 was technically very challenging and that was the second turning point in my life. Our work on the Petronas Twin Towers was my showcase to win projects like the Kingdom Trade Centre project in Saudi Arabia and the Burj Dubai.

The Burj Al Arab hotel is Eversendai’s signature project and has paved the way for Eversendai’s entry into the Middle East’s booming construction market as a specialist structural steel contractor. One good project leads to another and all my executed projects have their own merits.

Why did you sell a 30% stake in Shin Eversendai Engineering (M) Sdn Bhd to IJM Corp Bhd in 2004, and how did the deal come about? M. Bala, Alor Star

Dubai was experiencing unprecedented growth and Eversendai had a presence in this market since 1996. At the time, IJM was looking at the Middle East market, which had immense opportunities for mega-projects. Selling 30% to IJM was a strategic move because Eversendai’s growth was constrained at that point. I envisaged that Eversendai needed a big brother to support its growth. As such, it was agreed that IJM would participate as a preferential shareholder. We did tender for some projects but these did not materialise as both companies were busy with their own projects and independent visions. Eversendai decided to buy back the 30% preferential shares from IJM in 2007 by mutual agreement.

Do you believe that it’s harder for Indian entrepreneurs to make it big in Malaysia, and what’s your advice to them? K.T. Samy, PJ

In general, it is hard for any emerging entrepreneur to make it big in any country. However, if you set your mind to it, nothing is impossible. You must have, among other things, a positive attitude, inspiration, self-confidence, determination, focus, passion, discipline and initiative. You must work hard, keep your promises, provide good service, stop giving excuses, be punctual and develop personal relationship at all levels. Do it right the first time to make it happen. Never give up and always use your common sense. You must keep to your commitments to win the trust and confidence of the clients. This is very tough to practise, but it can be done if you want to. Above all, you must maintain this always.

Your company has a reputation for winning major jobs in the Middle East. Why is that so? Alan Seow, Kepong

In fact, all the countries I have ventured into are by invitation. I have built a very good reputation and a good brand name for Eversendai. I always get the projects completed on time without compromising on delivery date, quality and safety. Clients in the Middle East do not compromise on their requirements and specifications, and Eversendai has been able to fulfil their needs. Nowadays, we get invited to bid for contracts solely based on our good reputation, without any marketing in the Middle East.

As far back as 1999, you spoke about listing your business. Has that changed? A. Selvamuthu, Johor Baru

I wanted to list Eversendai in 1999 but by the time I was ready, the Asian financial crisis hit. Now I am pondering if I should I go in that direction. Looking at what has happened, I feel it is far better to be a private company than a listed entity, but I am not writing it off completely. I will look at it when the time is right.

In the message in the company website, you say Eversendai is “growing beyond expectations”. What had you hoped for when you started the business, and what is your goal now? Kamala Devi, Shah Alam

When I started my journey towards success, I did not envisage this level of growth. I did not even dream of establishing fabrication factories, as my concentration was more on construction. But today, I have factories in Dubai, Sharjah, Qatar and Malaysia.

My strategy is to capitalise on the labour capacity, available skills and proximity to the Middle East by establishing a fabrication factory in India as well as venturing into the Indian and African construction sectors. In the long term, as part of my portfolio and diversification management strategy, I plan to venture into oil and gas-related projects and export fabricated steel to Japan, Europe and America.

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