Reshma and Vinesh Yakub embody the idea that family-run businesses possess a resilience that allows them to grow and endure across generations, regardless of their size.
About a year ago, the husband-and-wife team from Pietermaritzburg faced a life-changing decision. Reshma’s cousin, Ashika Singh, had been diagnosed with terminal cancer, meaning her husband, Shushen, would soon be left to run the small packaging and marketing business they had built together over 20 years. During this difficult period, Ashika made a heartfelt request to Vinesh, to support Shushen and help sustain the business in her absence.
Although Vinesh had started a new job just two months earlier, several factors made the decision to resign and join Micor Marketing in Mkondeni, Pietermaritzburg’s industrial hub much easier.
For one, both Vinesh and Reshma brought years of extensive experience in the packaging industry to the table. In fact, they met while working at another packaging company owned by one of Reshma’s cousins. Vinesh had also built valuable industry expertise during his time at major companies such as Nampak and DHL Supply Chain who were contracted to Unilever.
There was also a mutual understanding that Vinesh and Reshma would have the first option to acquire Micor Marketing should Shushen ever decide to sell. Above all, however, they were family – a foundation of trust that allowed them to make significant decisions quickly and with confidence.
Sadly, Ashika passed away shortly after her diagnosis. Within a year, Shushen decided to sell the business and relocate to Johannesburg to be closer to his daughter. While such personal challenges can place enormous pressure on a small business, the involvement of Vinesh and Reshma gave Micor Marketing renewed momentum and an opportunity for future growth.
Reshma, who also runs her own bookkeeping practice, sprang into action to raise the finance to buy the business from Shushen. While she was aware of several bridging-finance providers, the short repayment terms would put too much strain on the business.
Provincial development finance institutions offered better terms, but their application and approval process were too slow for the urgency of the situation.
Fortunately, an accountant Reshma worked closely with recommended Business Partners Limited as a potential funding partner and facilitated an introduction on her behalf. Following these discussions, Business Partners Limited agreed to finance the purchase of Micor Marketing for close to R1 million, structured as a loan repayable over five years.
Rather than succumbing to the challenges of the past year, Micor Marketing not only stabilised but expanded its broad range of offerings. These include manufacturing boxes for the shoe industry, producing plastic and cardboard packaging for several small manufacturers, supplying boards and specialised plastics to exporters in Richards Bay, and assembling and packaging pot scourers.
Reshma was also able to convert some of her bookkeeping clients into packaging clients, while Vinesh’s extensive industry experience enabled him to build strong relationships through advisory and consultation. Most recently, he commissioned a set of packaging machines for a client and advised on packaging design for a furniture factory.
Going forward, the couple is planning to buy large-format printers for the manufacturing of small runs of tailor-made packaging. This will allow Micor Marketing to occupy an underserviced niche in an industry where minimum order quantities typically start in the thousands.
Reshma is confident that they will approach Business Partners Limited again for their expansion finance. “Given our turnover and order book, there won’t be any issues securing bank finance, but I would rather go to Business Partners Limited. The service we received was highly personal something you don’t always get that from a bank,” she explains.
The long-term future looks promising for Micor Marketing. With both their son and daughter now involved in the business, Reshma and Vinesh are laying the foundation for sustained growth and a legacy that can be continued into the next generation.
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