ABU DHABI: UAE-based Al Rawabi, a leading producer of dairy products and juices, announced plans of a new investment worth Dh80 million ($21.7 million) in 2016 to enhance production and to enter new 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 Dh25 million ($6.81 million) in state-of-the-art cold storage infrastructure, said a statement from the company.
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 Tigani and his team to the brand.” “We have an ambitious road ahead and our mission is to be a Middle East and North Africa (Mena) brand by 2020 with presence in key markets across the region,” he said.
Al Owais also noted that the company is confident that it will grow by 15 per cent in 2016. As part of streamlining processes, Al Rawabi will also centralise operations of stores for more effective supply chain management and increased productivity, said the statement.
Additionally, 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 litres of dairy products daily, added the statement.
The company had invested Dh125 million ($34.03 million) to expand farm facilities and dairy cattle in 2013 and another Dh22 million ($5.99 million) in 2014 in new third generation filling and pasteurisation lines as part of its strategy to become a regional leader, it said.
Abdulla Al Qubaisi, vice chairman of Al Rawabi Dairy Company, said: “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.”
“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,” he added.
Tigani added: “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 concluded.
