UAE dairy Al Rawabi introducing new products

Wednesday, Mar 23, 2016

Dubai: Dubai-based dairy and juice firm, Al Rawabi, plans increase its turnover to Dh1.5 billion by 2020, its Vice-Chairman Abdullah Al Qubaisi said. Turnover in 2015 was around Dh890 million.

The company aims to do this by launching new products, such as cheese and coffee, and increasing its share in the UAE market from 35 per cent today to 40 per cent, Al Qubaisi told Gulf News on the sidelines of a press conference in Dubai on Wednesday.

Founded in 1989, Al Rawabi manufactures juice and dairy products at its farm in Dubai’s Al Khawaneej area, and exports to Oman, Qatar, Iraq, Libya, Sudan and Yemen.

The company will also focus on producing more functional products that have more healthy ingredients, such as milk for consumers that have diabetes.

“We will not leave our core products like milk and juice but we will be more specialised in functional products,” said Al Rawabi chief executive Ahmad Al Tigani

On Wednesday, the company said that it will embark on an Dh80 million regional expansion.

It will invest Dh60 million to modernise its production facility in Al Khawaneej.

“We are going to change the filling machines and the pasteurisation and homogenisation units to be more automatic. We are going to add new inventions from Sweden and Denmark,” he said. “This will improve the quality of the products and help deliver them faster to consumers.”

The production facility is expected to be automated by March 2017, boosting daily production of dairy products and juice by 15 per cent, from the current 285,000 litres and 185,000 litres respectively, Al Tigani said.

Distribution centres

The remaining investment will go into setting up distribution centres in new markets in the GCC (Gulf Cooperation Council) and Africa, including Kuwait, Bahrain, Algeria, Nigeria, Ethiopia and Kenya, he said. It is also looking to open distribution centres in Saudi Arabia, including Jeddah, Riyadh and Dammam, by 2017.

“Africa is a promising market … it has a big population and the consumption there is very high,” he said.

In Abu Dhabi, Al Rawabi is looking to acquire a farm with an existing production facility, Al Qubaisi said. The facility, which is 80 per cent complete, will need an additional investment of $100 million in the next five years.

“We are in discussions with investors who own a farm but cannot run it. We will run it and transfer everything, including the cows,” he said, adding that Al Rawabi’s existing farm in Dubai is “fully utilised”.

If the company reaches an agreement with the investors, whom Al Qubaisi did not name, the facility could be operational by the end of 2017, he said. Al Rawabi also aims to supply its products to more than 15,000 stores in the GCC by the end of this year, from 12,500 today.

Al Tigani said he expects the company’s turnover to grow by 15 per cent in the current year.

By Sarah Algethami Staff Reporter

Gulf News 2016. All rights reserved.

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