Increased customer focus and strategic expansion of distribution network contribute to FINE’s continued market leadership

Published February 25th, 2010 - 12:45 GMT
Al Bawaba
Al Bawaba

FINE, the market leader in the Middle East’s hygienic paper industry and part of the Nuqul Group, has revealed that its multi-pronged approach of expanding into newer distribution territories and implementation of a more customer-centered strategy has helped reinforce the company’s leadership in the region’s hygienic paper segment. Amidst the current economic downturn, the leading tissue manufacturer successfully recorded an increase in revenue for 2009; with its market in the Kingdom of Saudi Arabia (KSA) accounting for 70 per cent of the growth and the UAE market contributing 30 per cent. FINE’s continued growth and expansion into newer areas in the region complement a recent industry report that the Middle East region’s tissue paper segment is expected to post an annual growth of eight per cent between 2009 and 2011. 
 
According to the company’s latest annual performance report, various levels of growth were experienced by all of FINE’s product categories. However, key products like facial tissues, maxi rolls, toilet rolls and baby diapers recorded higher growth rates over other categories. FINE’s key export markets in 2009 included Qatar, Oman, Bahrain and the Indian subcontinent. The company’s positive performance reflects the success of its 2009 strategy of improving its products according to consumer needs and developing a wider distribution network that aimed at penetrating untapped yet high potential areas. FINE also resolved to improve manufacturing efficiencies, which later resulted in a 15 per cent increase in output per unit and a decrease in manufacturing costs per unit of output.
 
Peter Janho, Chief Area Officer for the Arabian Peninsula and Iran, FINE, said, “The Middle East region has been identified as the largest and fastest growing segment of the global tissue paper industry. The region’s tissue industry growth is widely attributed to a strong presence in niche segments such as boxed facial tissues and kitchen towels. FINE aimed at complementing this strength by looking deeper into these niche markets to find out what consumers want. Our efforts to implement a more customer centric approach combined with the development of a wider distribution network have given us the advantage of reinforcing our leadership in the tissue industry segment. FINE’s 2009 performance reports have also shown that despite the global financial crisis, consumers did not cut back in its consumption of essential items like paper products.”
 
In 2010 FINE will be adopting a similar multi pronged strategy that includes investing in latest production technologies, further development of its distribution network and enhancing automation of current sales and distribution for both KSA & UAE through the use of individual PDAs by the entire sales force. The company has already announced that it will be allotting 80 per cent of its investment portfolio for the purpose of increasing production output. FINE will also concentrate on product improvements for its line of facial tissues, kitchen towels, toilet rolls and baby diapers.
 
“FINE’s positive outlook for 2010 is reflected in the strategy that we have chosen to implement. We are also keen on increasing our market presence as more Far East-based brands are carefully making their way into high potential markets such as the Indian Subcontinent and Eastern Africa. We are confident that consumers will still continue to patronize us as we have already established a brand that is known for its quality and hygiene, and as we are the only company to offer sterilized products. Our prompt attention to customer needs and presence on any store shelf in the region, are also major factors in our success” concluded Janho.
 
The FINE stable of products includes facial tissues, toilet paper, baby diapers, wet wipes, refreshing towels, adult briefs, jumbo rolls, kitchen towels and sanitary pads. FINE has a manufacturing unit at the Jebel Ali Free Zone in Dubai that is equipped with state-of-the-art equipment and facilities, and employs around 300 highly skilled staff. Currently FINE has an established presence in most of the Middle East countries including Jordan, Egypt, Lebanon, Saudi Arabia, Yemen and the UAE, and also in the USA.