A smooth operator

Sahara was the vehicle that kicked off the transformation of Clan Gupta from car-boot salesmen to parasites on the ship of state, and its demise won’t be greeted with widespread wailing and gnashing of teeth. Mustek, on the other hand, is a perky performer that has kept its nose clean and gone about growing into one of the largest assemblers and distributors of PCS and related bits and pieces in SA.

The company’s interims show an excellent performance despite difficult economic conditions, with headline earnings up 55.5%.

Mustek points to communications, mobility and energy as three pillars that are constantly evolving and providing opportunities for the group to add value with its portfolio of brands.

In the energy field it is targeting solar as a way to allow commercial users to mitigate the effect of rising electricity prices. It points to the return on investment that a solar setup can provide over its expected 25year life span, with tax deductions and government rebates making the installation particularly attractive.

Mustek is also poised to take advantage of opportunities in smart education and learning, an area with enormous potential to enhance the classroom experience and provide quality teaching at a fraction of the cost of traditional methods. 3D printing is another niche in which it expects to show strong growth.

The group is continuing to explore further niches in which its brands can exploit opportunities as they arise.

It’s an exceptionally fluid market, with plenty of upside for a nimble operator like Mustek.

A planeload of Guptas turned up with a minister of mines in their pocket and an offer the Swiss couldn’t refuse