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Danube records 20% sales growth in H1 on expansion

The steady growth in the construction industry and continued focus on expansion plans, the Danube Group has recorded a significant double-digit growth in sales for the first six months of 2012.

The company has achieved a 20 per cent growth in sales, compared to the first half of last year on growth and demand for products in the Middle East and African markets, according to founder and chairman of the Danube Group Rizwan Sajan.

“2012 is a landmark year for us and the expansion has not only strengthened our market presence in the region, but has also helped us reach a wider audience. The company is in excellent position to meet its target for the annual year with record volumes and sound profitability,” Sajan said.

“Our 20 per cent growth in sales ....has also allowed us to expect higher sales for the end of 2012. Danube, as a company remains steadfast in meeting the requirements of growing customers and stake holders and will continue to live up to our reputation of being providers of world-class materials,” he added.

Danube has a large presence in the UAE and sees impending growth across the Middle East region including areas such as Qatar, Bahrain, Oman and Saudi Arabia. To keep pace with the emerging market trends, the company continues to explore investment opportunities in untapped markets such as Africa.

Danube, which started as a building materials supplier 19 years ago, has also found success with its introduction of a one-stop-shop concept called Danube Buildmart’ for home interiors. The outlets target a diverse retail segment ranging from developers to architects, interior designers to home owners.

The leading retail facility has been a major force in generating sales growth for the company indicating a share of 32 per cent in total sales for the first half of 2012. To-date, there are 35 Danube Building Materials and Buildmart showrooms. The company also maintains procurement offices in Canada and China.“Our strong belief in the potential of the UAE market is rewarded by the positive developments and growth in sales. The continuous year on year growth encourages us to expand our operations and leverage upcoming opportunities in other markets around the world,” Sajan said.

With its strong cash position, Danube Group is well poised for a growth of 25 per cent for the next two quarters of 2012. Danube maintained a constant price trend in the last few years. However, the raw material and ocean freight charges were abnormally high this year which led to the increase on landing cost. This in a way added pressure to the profit margins thereby resulting in a price rise.

However, the prices would stabilise soon as the freight costs are expected to fall down in the coming three months.

Anis Sajan, managing director of Danube Group stated that UAE real estate sector is back on track with several companies reviving their projects while others were setting up new infrastructure.

In line with this, Danube will continue to open more outlets and create a stronger market presence not only in the Middle East but also across the global market. Danube will open 20 new showrooms by next year across UAE, Oman, Qatar, Saudi Arabia and Africa.

The first half of this year saw the opening of three new Danube showrooms in key locations that include Saudi Arabia, Abu Dhabi and Al Ain. The increased demand for its products coupled with its expansion has resulted in the company growing its workforce since its inception, to 1,700 people.

—abdulbasit@khaleejtimes.com