Saudi beverage giant eyes $1bn sales
Dubai, February 20, 2011
Aujan Industries, one of the largest beverages firm in the Middle East, is on track to meet the ambitious $1 billion sales target by 2012, buoyed by its full-year 2010 growth figures of 20 per cent, said a top official.
The announcement comes ahead of Aujan’s participation at the Gulfood 2011 expo to be held from February 27 to March 2 at the Dubai World Trade Centre.
A Saudi-based manufacturer of popular beverage brands Rani, Vimto, and Barbican, Aujan outlined it plans for global expansion, product development and upgrade of distribution network.
'There are many fast emerging markets in the region which are crucial to our growth strategy. Our brands have long been market leaders in the GCC, representing as much as 90 per cent of market share in their segments, so the acceleration of growth within the Gulf would be relatively difficult,' remarked Kadir Gunduz, Aujan president and CEO.
According to Gunduz, the Middle East’s top juice brand, Rani, led brand sales, with increases of 23 per cent value year-on-year.
'Aujan’s Vimto cordial sold 29 million bottles in GCC in 2010, and currently accounts for more than 90 per cent of regional cordial market. Barbican brand also grew in terms of footprint and product range with the latest introduction of the brand in the Iranian and Egyptian markets, and the addition of the cans range to its portfolio,' he noted.
The group, said Gunduz, had announced plans to accelerate its growth in November last year, setting a milestone target of $1 billion in sales by the end of 2012.
Overall, the Aujan team aims to sustain the over 20 per cent compound annual growth rate (CAGR) that the team managed to deliver over the past 5 years, he pointed out.
To meet the target, Aujan is undertaking an aggressive strategy of global expansion and further gains in market share across the Mena and South Asia region with a focus on emerging markets including Egypt, Syria, Libya, and Algeria, Gunduz revealed.
'In markets where we enter as challenger brands we have huge potential. For example, in Egypt, Rani jumped from seventh to third best-selling juice in only nine months. Given the speed of our success, we’re now focused on creating a larger global footprint, and are in the initial stages of expansion into new territories including India and Malaysia,' he added.
To handle increased demand, Aujan plans to invest over 100 million euros ($136 million) for capacity expansion, modernization and infrastructure at its plants in Dubai, Tehran and Dammam, increasing output capacity by 40 per cent, the company chief said.
'Aujan also plans to add one more plant to its portfolio by 2013,' he added.
According to Gunduz, the Gulfood is a further opportunity for the company to grow and reach untapped markets.
'Gulfood is a great opportunity to meet the region’s top suppliers and distributors, and as we are actively looking to target new markets, of course we will be looking to broker new deals and take advantage of potential opportunities,' he noted.
'We will also showcase some of our most recent and innovative product developments, including new flavours that we are about to bring to market. We expect to create a great deal of trade interest as a result,' he added.
Aujan Industries, established in 1905, has operations in more than 50 countries and boasts of a turnover of over $800 million.-TradeArabia News Service