AHMED GHOZZI: BEYOND AUTOMECH
By Hend Seif El Din
Photo credits: Khaled Fadda
How did it all start?
In 1986, I was 15 years old, my father used to be in the publishing and magazine business. His background was in printing houses, and he was very well connected in the business industry; whether abroad with raw material suppliers and machinery, and/or in Egypt. In 1986 he came up with the idea to organize the first exhibition in Egypt. Back then, Egypt had not yet witnessed or hosted an international exhibition connecting the local market to the global market. The first international exhibition for printing and packaging, along with an international conference. Back then, I was in high school; I was intrigued by the concept of creating Egypt’s first business platform and wanted to join forces; my father accepted it and let me join the team for three four days during the show. I ended up staying on site for seven days instead of three and went to college afterwards. I was always aiming to work full time, while I was in college.
So, did you start working with your father then?
I wanted to work with my father, but he refused, and said I should go work elsewhere, gain experience, then return to work with him. So I worked in a couple of magazines abroad, then came back and joined my father in 1991, for the third edition of the exhibition, by then I was a college senior.
How was it, working with your father?
Within two years, from 1991-93, I managed to bring in 88% of the company’s total revenue; I was 21 at the time. We were about 30 people in the company back then; five people working on the international market, seven on the local market, then there was me. We had a meeting then, and my father said I needed more training, courses…etc. So, my days were composed of work in the morning, and classes/trainings in the evening. Literally working 24/7. I was totally independent; I moved out of my parents’ house when I was 18 years old, an agreement with my dad, who was only 19 years older than I was, so we were on the same wavelength.
What happened next? When did you manage to become a partner?
In 1993, he asked me to join forces as a partner, within his existing portfolio, which included printing, packaging, textiles and plastic. In 1994, we had a misunderstanding, I had developed my own way of thinking, I studied the market closely and wanted to expand in new sectors that would make Egypt a business hub. I told him that I was going to leave his company. He agreed, and told me he’d join me as a partner, with whatever it is I wanted to venture in.
Which was?
I decided to establish a company and I launched the brand “Automech,” to be launched in 1996.
How did it go, with Automech?
With the first launch of Automech in 1996, the investors quadrupled their investments fourth-fold. The first Automech exhibition was the biggest exhibition Egypt had ever seen, literally the biggest one the Cairo Conference Center had ever hosted. That day, my father came to me, handed over his company’s keys, told me he’s retiring, and asked me to go and manage the company. Back then, he was in his late 40s, but he decided to step aside.
I’m assuming you took over the company then?
Yes, I went for it and restructured the company. After my father passed away in 2001, we continued working and filtered out certain industries, and we decided to focus on four or five main ones. Our portfolio was rapidly expanding and we became more oriented with quality not quantity as well as a focused strategy on the industries that would take Egypt to another level in a competitive global market.
What did the “final” portfolio include?
Our portfolio included the automotive giant, AUTOMECH. The real estate show NEXTMOVE. An industrial show, plastics & petrochemicals PLASTEX, and the biggest in the region–and textiles, ITCE. We started developing AUTOMECH; it grew 100% over the span of three years and became the automotive business hub for Egypt with support of international pavilions & governments. In 2007, we started thinking about real estate and implemented it in 2008, 2009, where the show witnessed a massive success, we were then approached for a joint venture by the global exhibition pioneers, INFORMA.
So what’s happening with the company now?
We are now negotiating joint ventures with international organizers including INFORMA to penetrate other industries that will benefit Egypt, it’s people and the economy… We are also getting into the conferences, seminars & training business.
What industry are you thinking of?
We’re working on several things, one of which is an international conference, targeting the upcoming generation which is the core of Egypt’s future; this will take place in Egypt, Saudi Arabia, and the UAE; replicas of the same conference. We’re also thinking of a railways and infrastructure show in Egypt, this will be another core sector that will define a new Egypt .
With the amount of manufacturers you’ll be brining in for this show, who would come to this show and be able to work in a country with these many problems?
The main mediator will be the government and their bidding contractors as well as entrepreneurs that believe in Egypt’s rapid rising potential
So what happened with Automech? Now you’ve joined forces with Formula?
After the January 25th revolution, a month later, I noticed that our country would need at least four years to bounce back. The fact was that the clients had lower budgets, due to lower sales, during that period. So clearly, they wouldn’t want to pay for a spot in Automech and/or Formula, or at least, not at this time, Thus, we would have needed to decrease the prices, which would be problematic, because there is no way that I would put on the show with lower standards, for example. So what was the alternative? I decided to join Formula, come up with a set price for the clients, and thus make life easier for the client. There’s only one major show on the market, so in the end–even if we, as in Formula and Automech, make less profit–the client will be more comfortable.
So is this merge for good, or is it temporary?
This is a permanent and strategic merge that we are honored to facilitate for our loyal clients. Other than exhibitions, where does Pace e Luce for example come in, because I see this as completely different! Starting 2008, I was considering entering a project with the concept of ‘Luxury.” In 2009, I was approached by Pace e Luce. At that time, I had no interest in the beauty sector. In 2010, someone that I trust very much told me about how good they, so I took her word for it, and decided to go meet with them. That’s how we initiated the whole idea; the only country where Pace e Luce is a joint venture is in Egypt, in the rest of the countries
it’s a franchise. But here, it’s a full partnership, which means that I’m an owner of the trademark, which thus means that I control the quality and expansion plans.
So how did you go about it?
We had a five-year business plan, with the first store opening in Maadi due to positioning purposes, then we expanded to Heliopolis, and now to Mohandessin; we’re also currently expanding the Heliopolis branch. We’re open in Marassi during the summer to serve our clients, and we’re also opening a branch in the 6th of October area. Finally, we want another branch in the Fifth Settlement, and that’s it, no more expansion.
How can you control all of these, since all the employees have to be skilled, not anyone would do?
Every business has its problems. In this industry we had no references; we learned everything on our own. We created a checklist, which is used for daily supervision. This covers every single detail from cleanliness, to the taste of the coffee served, and everything in between. We’re the ones who set the standards, so we hire employees accordingly. Building loyalty is also key, which takes time and effort, it also requires the right type of investment.
Back to exhibitions…when’s the next one?
The next exhibition is due in March. Automech-Formula.
What about Cityscape?
Cityscape should take place in April 2014 and with Egypt’s real estate market rising, it should be a great success & benefit to Egypt’s people and economy.
