Wellmade targets 10 franchisees

Saturday, January 14, 2012

ENCOURAGED by the positive outcome of their first international expansion in Selangor, Malaysia, Wellmade Motors and Development Corp. president and chief executive officer Philip Tan hopes to grow his business through franchising and targets 10 franchisees in the next five years.

Tan, in a recent interview, said he found a big opportunity in growing his business through franchising, considering the interest shown by potential franchisees both foreign and local.

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“Franchising is more popular in food. But it was only until I expanded my operations in Malaysia that I saw a big potential for my business to be franchised,” Tan said.

Tan is the first in the country to franchise a metal-working business, including manpower, in the global market.

“It is a fulfilling dream and a source of pride for the country, considering that we are a local company being franchised by a foreign firm,” Tan said.

Chance

According to Tan, it was his Malaysian client who showed interest in operating the same business but admitted he didn’t have enough knowledge in managing the business.

“I then saw an opportunity there that I could embark on an international expansion,” Tan said, who became the franchisor of his Malaysian client.

For his international operations, Tan said, he would provide the skilled workers, management system, ISO, software and company name. Tan prepared and trained skilled workers for Malaysia, who can be all-around workers and operate several machines.

“One good thing about this venture is that not only was I able to expand the business, but I have given my workers the chance to work abroad. Sending workers overseas can help in income generation and add value to the remittances,” he said.

Tan signed a three-year franchise contract with his Malaysian client turned business partner.

He sought help from the Department of Labor and Employment and Technical Education Skills Development Authority (Tesda) in this type of franchise agreement that includes deployment of Filipino workers.

Regional

The Selangor operation bears the name SM Wellmade Engineering Sd. Bhd. and occupies a 600-square-meter building sitting on an 800-sq.m property.

With the success of his first international foray, Tan said in the pipeline are expansions in Dumaguete and Tagbilaran. He added a Kenyan client also expressed interest in bringing his business to Kenya.

To sustain the supply of highly-skilled workers for his business expansion, Tan said he would put up an Institute for Strategic and Entrepreneurship Foundation this year to help professionalize workers.

“I’ll be putting up a training center that would help enhance the management system,”
he said.

More workers

This center will also help overseas Filipino workers enhance their skills so they could get better jobs and higher pay abroad.

“We are still finalizing plans. But I have already coordinated with Tesda for a National Competency Level 3 and 4 training center,” Tan said.
In five years, Tan hopes to add 250 employees to his growing business. Tan, who runs
four plants in Cebu, currently employs 120 people, of whom seven percent are persons with disabilities.

His first local franchise is in Davao City, operated based on a build-operate-transfer model that was turned over in March last year.

Wellmade engages in engine reconditioning, machining, and fabrication of metal component parts. It was founded in 1988.