Al Rawabi to Invest AED 80 million to Expand Production, Increase Market Reach in 2016
New state-of-the-art automated facility to raise output to 70 per cent from the current 30 per cent; Feasibility study to open operations base in Saudi Arabia underway
Grows 15 per cent in 2015, double the industry average; Envisions to become a MENA brand by 2020
Dubai, UAE – March 23, 2016
Encouraged by above the industry average growth last year, Al Rawabi , the UAE’s locally based dairy producer by herd size and production capacities today said that it is planning a new investment of AED 80 million in 2016 to enhance production and to enter new export markets in the region.
Addressing a press conference to unveil the company’s growth plans in the context of the recent elevation of Dr. Ahmed El Tigani as the CEO of the company, officials said that the new investment follows last year’s AED 25 million in state-of-the-art cold storage infrastructure.
Congratulating Dr. El Tigani on his new role and commenting on the company’s consistent growth milestones over the years, H E Abdallah Sultan Al Owais, Chairman, Al Rawabi Dairy Company , said: “In 2015, we grew by 15 per cent compared to an industry average of 7 per cent. This achievement is the result of strategic thinking, phased investments over the years, innovation and commitment of Dr. El Tigani and his team to the brand.”
“We have an ambitious road ahead and our mission is to be a MENA brand by 2020 with presence in key markets across the region,” he said, adding that the company is confident that it will grow by 15 per cent in 2016 also.
As part of streamlining processes, Al Rawabi will also centralize operations of stores for more effective supply chain management and increased productivity.
The Chairman said that this year Al Rawabi will add a new modern state-of-the-art automated facility which will help the company increase output to 70 per cent from the current 30 per cent.
Currently, Al Rawabi produces 175,000 litres of fresh juice products and 325,000 liters of dairy products daily.
The company had invested AED 125 million to expand farm facilities and dairy cattle in 2013 and another AED 22 million in 2014 in new third generation filling and pasteurization lines as part of its strategy to become a regional leader.
Year of Innovation
Emphasizing the focus on product diversification, H E Abdulla Al Qubaisi, Vice Chairman of Al Rawabi Dairy Company said that 2016 will be one of the most innovative years for Al Rawabi . “This year we are looking at enhancing our portfolio with an unparalleled range of new value added products. These products will also seek to address key lifestyle-related concerns of our society like obesity, hypertension, diabetes and Vitamin -D deficiency.
He said the company will expand its range of fresh juices and is also working on reducing sugar content in fruit juice without compromising on taste. In the dairy products category, Al Rawabi is also looking at introducing a range of cheeses and to expand into new category of products, including ice creams.
Highlighting the company’s focus on enhancing its footprints across regional markets, Dr. El Tigani, said: “In the next three to four years, we will be present in all GCC countries, apart from increasing the brand’s visibility in more African countries. The aim is to double the turnover from 2015 levels by 2020 and reach a customer base of over 15,000 stores by the end of 2016 from the current 12,500.”
He said Al Rawabi will continue to enhance reach by adding new export markets and in 2016; it has plans to enter Bahrain. While the main operations are based in the UAE, the company entered Kuwait in 2015. Al Rawabi directly distributes to Oman and Qatar and exports its products to Iraq, Libya, Sudan and Yemen.
“We are also conducting a feasibility study to explore setting up an operations base in Saudi Arabia. On our home turf in the UAE, we are also currently in planning and feasibility study phase for a new dairy farm in Abu Dhabi,” Dr. El Tigani said, adding that Al Rawabi is also looking to grow alfa alfa hay in an African country to close the production cycle and minimize feeding cost.
About Al Rawabi Dairy Company :
Al Rawabi Dairy Company is a leading dairy and juice company in the UAE with a wide range of products from milk, yoghurt, laban, juice and functional products. Currently, Al Rawabi operates in the UAE, Oman and Qatar serving more than 12,500 stores with fresh products. At its farm in Al Khawaneej, Al Rawabi has a cattle stock of 12,500 cows. Starting in 1989 with 500 imported cows, Al Rawabi celebrated its 25th Anniversary last year. Innovation is at the core of the company – it introduced the plastic bottles in 1991 in the UAE and is the first company to introduce fresh juices in the GCC in 1995. It is also credited with introducing pasteurized juices in the region and functional products in the dairy industry – such as Nutree Boost and Super Milk. The new functional products are enriched with multivitamins and minerals, and designed to help solve the health concerns of the GCC population. The company is awarded with ISO 9001, ISO 14003, and ISO 22000, HACCP certifications and has received much local and international recognition, such as AgraME Award for Best Dairy Innovations in the UAE, Dubai Municipality Award for Excellence in Animal Welfare, Super Brand Award, Best Environmental Practices award as well as being listed among the 40 strongest brands in the Arab World by Forbes Magazine in 2008 and 2015 respectively.
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