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By Alex Lim
RUNNING a profitable family business is easier said than done, but Gaylin International's success shows that it can be achieved.
The company, a winner at this year's Enterprise 50 (E50) awards, was started by Mr B.Y. Teo back in 1974.
Mr Teo and his brothers bought and sold miscellaneous items and products, and did a little bit of manufacturing of cargo nets and so on, occupying a 300-ft space at Beach Road.
Today, the company sits on two parcels of land in Jurong with a total land area of 320,000 sq ft, manned by 125 employees.
Gaylin International is now led by managing director Desmond Teo, the younger brother of Mr B. Y. Teo. The company is a wellknown supplier of products and services for the offshore oil and gas, shipping and construction industries.
When the company was first started, the Teo brothers would splice the steel ropes and cables used by the offshore oil and gas industries by hand.
More than three decades on, Gaylin International owns sophisticated machinery and equipment used in the production and testing of cables, ropes and other related specialised equipment essential to the proper functioning of the industry.
It is also a sole distributor for quality brands such as Sweden's Gunnebo, Austria's Teufelberger, the Netherlands' GN and Technotex, America's Samson and Slingmax and Germany's Diepa.
The company now exports to overseas markets like the Middle East, United Kingdom, the Netherlands, Korea and China.
The company has also set up overseas operations in Vietnam, and Mr Teo is already eyeing Korea, China, India and the Middle East as future venues.
Besides the relatively straightforward provision of products, it has also assembled a strong engineering team, providing roundthe- clock services.
'We believe in quality products and quality service,' says Mr Teo.
While many companies are struggling to grow their businesses in the face of the current economic slowdown, this is not the case for Gaylin International.
'We do not face any difficulty in the current economy,' he says.
This is because the company is more exposed to the oil and gas industry, where the demand for products and services remain buoyant.
In fact, Gaylin International engiwas able to maintain a growth rate of between 30 and 35 per cent over the last five years.
Last year, its total turnover was $85 million.
'There are many new projects in the oil and gas industry,' explains Mr Teo.
That said, new projects alone are not enough to help achieve the kind of growth rate that Gaylin International has had.
For this, Mr Teo credits the company's strong foundation - especially over the last decade - that set the stage and generated the momentum for the business to grow.
Then, there is the technical know-how that Gaylin International has accumulated over the last 35 years. With many years of operating experience under its belt, the company has built a very good reputation in the market, says Mr Teo.
The company's next target is to hit the $100-million turnover mark within the next three to five years. It is also planning an initial public offering, so that investors can bring in new capital to propel the company to greater heights.
Meanwhile, Mr Teo will maintain a business strategy that has stood the company in good stead all these years: expanding the variety of products it has in stock and paying close attention to new trends in the industry so as to meet growing customers' needs for safe and new products.
'We can't afford to stay where we are today. We have to keep going,' he says.
This article was first published in The Straits Times.
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