Danube aims to generate AED 1 billion in sales revenues for 2008
Leading building materials company records 72 per cent growth in 2007
Danube Building Materials, the leader in construction, building materials, and shop fitting industries, has announced that it aims to generate AED 1 billion in sales revenues by the end of 2008, following a highly successful performance in 2007. Having achieved a 72 per cent growth in its annual earnings last year, the company has also projected that it could double its annual returns to touch the AED 2 billion mark by the end of 2010, based on the current uptrend in its overall growth and amidst the rapid expansion of the construction industry in the region.
The company’s outstanding growth has been the result of its dedicated focus on establishing facilities in high potential production locations, such as its newest factories in Lianyungang, China and in Bahrain, which supply a significant bulk of the high quality products for its regional and international clients. In the UAE, Danube has undertaken a number of significant projects, including the delivery of its new Formica toilet cubicles to Dubai Mall, in addition to over AED 200 million in new projects in Ras Al Khaimah, Umm Al Quwain and Dubai Techno Park. Product expansion has also been a highlight of the company’s operations in 2007, with its initial foray into steel trading, ceiling manufacturing, and glass and aluminum garnering considerable success.
“We are very satisfied with the outcome of our efforts to strengthen our operations in the UAE while extending our clout towards international production destinations. Last year has been remarkable for us as we have opened up a number of important ventures and gained outstanding exposure for our products with global and regional clients,” said Rizwan Sajan, Chairman, Danube. “Our participation in events such as the Dubai Woodshow and Big 5 has significantly contributed to our accomplishments. Following our successful venture into new markets this year, we are also looking into penetrating the cement market and introducing more innovative building materials to our clients.”
Danube had formed important partnerships during 2007 and its alliances with Jotun Paints and Alubond USA has resulted in the inclusion of these world-renowned brands in the company’s product offerings. Danube’s own innovations, such as its new ‘fire rated doors’ also made its debut in 2007, after obtaining quality accreditation from BM Trada, a prestigious UK-based certification body. For 2008, Danube has charted a specific action plan to target Saudi Arabia, Qatar and Kuwait where the demand for building materials is rapidly increasing. Considering the Middle East region as the market with the most growth potential, the company is keen on supplying the rising demand for key products such as steel, medium density fibreboards (MDFs), laminates, timber, glass, aluminium and others.
“Our vision as the leading supplier and one-stop shop for total 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. Our strategy is to maximize our inputs in the building materials sector and further boost our market position by reinforcing our regional expansion plans and further enhancing our product line, thereby enabling us to reach our sales revenue targets in the coming years,” concluded Sajan.
Established in 1993, Danube has an extensive portfolio of over 10,000 products ranging from MDF, plywood, timber, laminates, veneers to sanitary fittings, hardware, ironmongery, steel, aluminum and glass among others. At present, the company operates from its head offices in a 285,000 square foot facility in Jafza north and 365,000 square feet area in Jafza south, which includes warehouses, logistics, kiln drying and a factory. Danube currently maintains eight branches in the UAE, in addition to its global hubs in Oman, Bahrain, China and India.