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Landmark Group eyes $5b revenue by 2015
DUBAI - Landmark Group, the Dubai-based retail and hospitality giant, said on Wednesday that its annual Middle East revenue was on track to exceed $5 billion by 2015 with expansion and diversification plans “going full steam ahead.”
- PUBLISHED: Thu 6 Oct 2011, 11:08 PM UPDATED: Tue 7 Apr 2015, 5:23 AM
The conglomerate, which has marked a milestone with more than 1,000 outlets encompassing 18 million square feet of retail space across its portfolios in the Middle East and India, believes that the main drivers of the projected growth would be markets in Egypt, Lebanon and Turkey.
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Vipen Sethi, chief executive of Landmark Group, said the conglomerate would also explore African markets as well as more Asian markets while strengthening its hospitality brand in the Middle East.
“The recent foray into Kenya with the opening of two stores is the beginning of our African entry,” he said.
Currently, Landmark’s Middle East turnover is $3.8 billion. Including its Indian business, the total group turnover at present is $4.5 billion.
The group, founded by its chairman Micky Jagtiani, who is ranked as the richest Indian businessman in the Gulf, started with a single Babyshop store in Bahrain in 1973 with an initial capital of $6,000.
Today, it has grown as a major force to reckon with, in the retail industry. The year 1990 proved a turning point for the group when it shifted headquarters from Bahrain to the UAE and opened its first Shoe Mart store in Dubai.
Sethi said the group had registered a 28 per cent growth for the year 2010-11. “From an annual revenue of $1.1 billion in 2006, we have registered a consistent annual growth of 25 per cent every year, over the past five years.”
He said the group’s fast-track growth had been sustained by a structured expansion and diversification strategy. During the 90s, its geographical reach extended into the entire GCC region. In 1990, the group forayed into the Indian retail industry with the Lifestyle department stores. Over the past decade, the group has expanded its footprint in the region with its forays into Egypt, Turkey and Lebanon. It has also built a presence in Jordan, Yemen, Sudan and Pakistan.
Speaking to Khaleej Times on Wednesday, Sethi said the group’s impressive growth is a testimony to the hard work of its 35,000-plus employees.
“Our employees have driven our operations seamlessly with absolute passion over the years. We have built strong relationships with our partners within the region and globally. On the basis of this strong people power, we aim to grow our retail footprint, expand our reach to five new countries, and introduce new brands and achieve a revenue of over $5 billion by 2015,” he said.
Landmark Group first forayed into the hospitality and leisure industry in 1998, with the launch of Fun City. It further strengthened its portfolio by acquiring the Middle East and North Africa, or Mena, franchisee rights for Fitness First in 2010.
The group has also diversified its interests in this division by creating a budget hotel chain, Citymax Hotels, he pointed out.
Sethi said over the past four decades, the group has developed a spate of in-house brands that have emerged to become market leaders. Centrepoint, Babyshop, Splash, Shoe Mart, Lifestyle, Beautybay, Iconic, Emax, Home Centre, Q Home Décor, Max and Shoexpress are some of the homegrown products under the group’s umbrella. In addition, Candelite, its latest retail offering, is already garnering a market positioning as the first-of-its-kind confectionery and savoury store in the Middle East.