Danube generates AED 1.1 billion in sales revenues in 2008
Danube Building Materials, the leader in construction, building materials, and shop fitting industries, has announced that it has generated AED 1.1 billion in sales revenues in 2008, representing an impressive 70 per cent growth in its annual earnings. The company, which has exceeded its planned target of AED 1 billion for the year 2008, has also revealed plans to invest further in its core business.
Company officials have further announced that Danube has enough margins to ride out the current global recession, and that it is expecting to secure a 30 per cent rise in revenues for 2009. In line with this, Danube is currently in the process of recruiting new employees for various departments across different regional offices and branches.
The company's growth has been the result of its dedicated focus on establishing facilities in high potential production locations, which supply a significant bulk of the high quality products for its regional and international clients. Maintaining a high level of quality across all its products, and considering the current economic climate, the company is currently in the process of ensuring the smooth delivery of its products to customers. Among Danube's products that had the most intensive promotional activities and gained the highest sales during 2008 are its wood offerings, including medium density fibreboards and plywood, as well as sanitary, hardware and steel items.
"In spite of the recession, we aim to maintain a healthy growth in 2009 with the strong fundamentals we have acquired through the continuous operations of more than 18 Danube outlets across the GCC," said Rizwan Sajan, Chairman, Danube Building Materials. "Offering more than 12,000 products under one roof with a big network, allowed us to address our buyers and the products they are demanding. Moreover we are not retrenching any staff and haven't made any salary cuts; in fact, we are recruiting new members on a regular basis."
For 2009, Danube has charted plans to expand its business by inaugurating its
'Building Materials Mart' in Ras Al Khaimah and Bahrain, and a new one-stop shop facility in KSA. Despite the current market recession, the building materials company still considers the Middle East region as the market with the most growth potential, and is keen on supplying the rising demand for key products such as steel, MDFs, laminates, timber, glass, aluminium and others.
"Our vision as the leading supplier and one-stop shop for all building materials is to cater to the requirements of our entire customer base, from individual homeowners to contractors and developers working on mega projects across the region. Even though many of the projects are being shelved in this area, there are still many ongoing projects which should keep us busy for the next 2-3 years and by that time surely, the global economy is expected to recover and businesses will start to rise again," concluded Sajan.
In the UAE, Danube has undertaken a number of significant projects, including a contract to supply Formica toilet cubicles to the Dubai Mall, in addition to over
AED 200 million in new projects across Ras Al Khaimah, Umm Al Quwain and Dubai Techno Park. In the steel business, where most of the traders took a halt, Danube was able to show a positive figure because of the big network it has under its umbrella. Even when the steel prices started falling, the company was able to liquidate its stocks in the fastest time and bought again at the lowest level to come back into the market. In addition to its AED 200 million investment in the steel industry in UAE, an AED 40 million new steel facility in Bahrain was opened, along with a huge investment of AED 50 million in a new steel facility in Oman.
- Danube inaugurates new facilities in Ajman and Al Quoz valued at AED 55 million
- GCC steel trade expected to cross US$200 billion in 2010
- Danube to invest AED 100 million in the UAE steel industry in 2008
- Building materials prices expected to rise by 5 per cent in the third quarter of 2008
- Building materials prices in Middle East witness 15 per cent rise in April 2009