The growth follows the company’s impressive 25 per cent rise in revenues during 2010 in spite of the global economic crisis and projects a similar growth in 2011, taking its revenues to $435 million. Danube’s increase in business can be attributed to its provision of world class high quality building materials and home interiors combined with great value and special services. The growth also marks the success of Danube’s move to implement a strategic expansion initiative across and beyond the Middle East region.
The first half of this year saw the opening of three new Danube Building Materials Showrooms in key locations that include the sanitary ware wholesale market of Sharjah; Al Dibba and in Saudi Arabia. The new showrooms are equipped with the latest state of the art equipment and have been designed to meet the growing demand for essential building materials for ongoing major projects.
The company has also revealed its plans to continue with its expansion initiatives and is looking to target the opening of 15 more branches in strategic locations across the Middle East by 2012. Meanwhile, Danube BUILDMART, the retail arm of Danube Building Materials, has also revealed that revenues for the first half of 2011 have also witnessed dramatic increase. The leading retail facility, which has found success in its introduction of a ‘one-stop-shop’ concept for home interiors and furnishings, was able to key in 46 per cent growth in 2010 and continuing with a year-on-year growth that is expected to drive in a 30 to 40 per cent increase before the end of 2011.
“The 21 per cent growth that we have gained for the first half of 2011 clearly shows that we are on track to meet our target of $ 1 billion in revenue for 2015. The increase in revenue has also given us the confidence to look forward in reaching $435 million by year’s end,” said Rizwan Sajan, Chairman, Danube Building Materials.
“The Middle East region is currently exhibiting a key vibrancy that reflects recovery efforts from the recent economic downturn. As the number of major projects increase so does the demand for building materials. Rest assured that we will continue to live up to our reputation of being a leading provider of world class, high quality essential materials needed for these ongoing projects.”
Recent industrial reports have shown that the UAE’s construction industry will see a CAGR of around 20 per cent from 2010 to 2013. The expected growth is driven in by the continuous increase of strategic construction activities and infrastructure development. The UAE has attracted investments from all over the world. In line with this, Danube has expressed confidence in playing a major role by leveraging its diverse portfolio of construction and building materials across these major ongoing projects.
“The upbeat economy of the UAE and the rest of the Middle East region have given us the confidence to drive in more growth as we head on to the latter half of the year. We are assured of more growth as the economy of the region displays strong stability and continuous growth. Also, we will continue with our moves to create a stronger presence by opening more retail branches across the region. Danube prides itself in being able to understand the demands and requirements for companies that are involved in the growing number of construction and infrastructure projects in the region. Opening more branches in various strategic locations not only assures our customers of easy access to our wide range of products but also gives them the confidence of quick delivery to their project site,” Sajan, added.