Mohsin Tajbhai was appointed CEO of Grand Parade Investments (GPI) in July, making him the consumer goods company’s fourth CEO in two years.
GPI is one of the JSE’s biggest empowerment companies. The firm brought Burger King to SA in 2013, but has had a long list of problems, including with the rollout of the franchise itself.
Losses in its entire food division and poor capital allocation decisions haven’t helped.
Predictably, last year shareholders called for a shake-up of its board and better governance.
But Tajbhai is taking the hot seat at a time when GPI’s fortunes could turn around. Its stock has clawed back 56% of its value within a year, even though over five years, it is still 53% lower than it was.
Decisions to sell its investments in coffee and baked goods firm Dunkin’ and ice cream business Baskin-Robbins have been well received. Founder and executive chair Hassen Adams has reduced his shareholding and influence, and activist shareholder Value Capital Partners (of Altron and Adcorp fame) has bought in.
Tajbhai, who was born in Zeerust in the North West, moved to Cape Town to study engineering. He was later head of engineering firm Nadeson Consulting Services. But after a decade as an engineer, during which time he worked on projects such as Cape Town’s tallest building, Portside Tower, he switched to a career in business.
"I found the ability to leverage my engineering skills to solve new problems extremely refreshing.
"Engineers are trained to think differently," he says.
Tajbhai joined GPI as COO of its manufacturing and property division in May 2017. It was a job that gave him broad knowledge of the business.
"Being on the management committee gave me the opportunity to participate in the setting of the strategy of the business."
Tajbhai says his appointment coincided with a turbulent time "when shareholders had lost confidence in the business". Its investment in Burger King was beginning to bite and it put dividends on hold.
Last year Tajbhai was appointed an executive director and he has served as acting CEO since January, when Prabashinee Moodley resigned after just five months in the position.
Tajbhai will have to bring some stability. But he believes stamping his authority on the firm is not the way to do that.
He would like to create a company with a management team that feels vested in the success of the business, allowing for people to have purpose and a sense of ownership.
He is hopeful for a turnaround at GPI. "I thrive in an environment where I’m surrounded by professionals who are driven and motivated, and I’m very comfortable at the moment with the current executive management team.
"I’m also confident that together we will add tremendous value to the group," he says.
Tajbhai holds an MBA from the University of Cape Town Graduate School of Business.
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