Danube targets to touch USD 1 billion in revenues by 2015

Danube targets to touch USD 1 billion in revenues by 2015

Company expects to grow by 25 per cent this year

January 24, 2011

Buoyant on its growth prospects, Danube Building Materials, the leader in construction, building materials and shop fitting industries, has set a target of attaining USD 1 billion (AED 3.67 billion) revenue by the year 2015. The company saw an impressive 25 per cent rise in revenues in 2010 in spite of the global economic crisis and projects a similar growth in 2011, that will take its revenues to AED 1.6 billion. Danube has also invested AED 50 million in a new manufacturing facility; spread over 1.3 million square feet, in Dubai TechnoPark, which would be functional this year.

In addition to securing significant growth, the company has also undertaken major expansion initiatives, which has expanded its market reach further across the region, as well as to India, one of the world’s fastest-growing economies. Danube expanded its retail footprint in 2010 and opened Danube BUILDMART showrooms in Dubai, Abu Dhabi, Al Ain, Bahrain and Mumbai. Each of these showrooms entailed an investment between AED 10 million and AED 50 million. The company plans to continue with its expansion through 2012, during which it targets to open 15 branches.

“The year 2010 was a very positive year for us and we are proud to say that we managed impressive growth and expanded at the same time. We added 10,000 new products to our portfolio for BUILDMART to meet housing needs, and now our total product portfolio is 25,000. Further, there were fresh initiatives and major investments, well thought over strategies and effective implementation, along with our foremost target to deliver the best to our customers, which together helped us stay strong even in tough market conditions. We are expecting positive growth results to continue in 2011 as well,” said Rizwan Sajan, Chairman, Danube Building Materials.

Danube cited a recent ‘UAE Construction Industry Outlook to 2012’ report by industry intelligence provider RNCOS, which says that the UAE construction industry is expected to witness a compound annual growth rate (CAGR) of around 20 per cent from 2010 to 2013.

“The bullish projections directed towards the UAE construction sector has drawn our focus further into broadening our presence in the domestic market, as we believe that excellent opportunities for growth are in sight for investors, developers and other players in the construction arena,” Sajan pointed out.

Danube not only saw strong performance in terms of its financials, its achievements were well recognized within and outside the industry circles. Danube was conferred with three prestigious awards including the Mohammed Bin Rashid Al Maktoum (MRM) Business Award and also received the Dubai Quality Appreciation Programme (DQAP) award. The company’s Chairman, Mr. Rizwan Sajan, was also named ‘Businessman of the year’ at Ahlan! Masala Awards 2010.

“Our achievements were recognized and personally I am humbled to have received the award by Ahlan! Masala. These achievements are the result of combined efforts of all our partners, employees and associates and we are grateful to them for their contribution. We are committed to not only our own growth but also to continue to make a positive contribution to the construction industry as a whole,” concluded Sajan.


About Danube Building Materials FZCO
Established in 1993, Danube Building Materials FZCO provides more than 15,000 products in stock and in-house value added services in all of its 14 showrooms across the UAE. The company operates from its head offices – a 285,000 square foot facility in Jafza north and a 365,000 square feet base in Jafza south, which houses its logistics centre, kiln drying facility, factory and warehouses. From a small trading firm, Danube has grown into one of the largest building materials company in the region, with 18 branches worldwide - 13 in the UAE, 2 in Oman, 1 each in Bahrain, Saudi Arabia and India, in addition to procurement offices in China and Canada. Danube has a team of 1000 people working from strategic locations in across the Emirates, including Jebel Ali, Deira and Abu Dhabi. The company has been and is currently involved in major projects across the UAE, Oman and Bahrain, including Emirates Hills, the Burj Al Arab, Shangri-La Hotel, Grand Hyatt, Motor City, Burj Dubai, Dubai Airport Terminal 3, Yas Island, Reem Island, Saadiyat Island, and Al Raha Beach Hotel, among others.

Wood prices in the Middle East remain stable over past six months

Wood prices in the Middle East remain stable over past six months

Danube Building Materials seeks to address increase in demand for wood as many construction projects are set to be completed
January 03, 2011

Danube Building Materials, the leader in construction, building materials and shop fitting industries, has announced that wood prices in the Middle East have remained stable over the past six months. According to statistics released by Danube Building Materials, wood prices began to stabilize starting the third quarter of 2010 and have remained stable ever since. Danube notes that the price for Medium Density Fibreboard (MDF) has been USD 285 per CBM, while the Malaysian Hardwood Plywood was priced at USD 495 per CBM.

According to Danube, the pricing for Film Face Plywood was pegged at USD 375 per CBM, and the Meranti Wood pricing saw an increase of 0.67 per cent from USD 750 to USD 755 per ton. The price of American Ash Wood meanwhile saw a 1.2 per cent decrease and was priced at USD 825 per CBM. The price of European Beechwood increased by 1.19 per cent, from USD 550 to USD 555. On the other hand, African Teak Wood called Iroko has been priced at USD 1,100 per CBM.

“We believe that the stabilisation of wood prices coupled with the current regional market situation where several construction projects are nearing completion, will considerably boost demand for wood. Danube is well-positioned to capitalise on this demand and cater to the diverse requirements of this dynamic market with our broad range of high quality products,” said Rizwan Sajan, Chairman, Danube Building Materials.

The company recently announced that in the next five years, it plans to list itself in Saudi Arabia and the UAE for an initial public offering (IPO). This decision was taken, following the significant growth it had achieved in recent years in terms of geographical expansion and achievement of revenue targets. Danube Building Materials also revealed that it is also open to dual listing in both countries, as part of its aims to secure AED 2.5 billion to AED 3 billion in total revenues in the next three to four years.

“An IPO listing can spur regional growth for Danube and help us become more profitable through optimum use of the revenue generated. Meanwhile, we will remain focused on consolidating our presence in the GCC region, and look to replicate the success we have achieved in the UAE across key regional markets,” concluded Sajan.

About Danube Building Materials FZCO
Established in 1993, Danube Building Materials FZCO provides more than 25,000 products in stock and in-house value added services in all of its 17 showrooms across the UAE. The company operates from its head offices – a 285,000 square foot facility in Jafza north and a 365,000 square feet base in Jafza south, which houses its logistics centre, kiln drying facility, factory and warehouses. From a small trading firm, Danube has grown into one of the largest building materials company in the region, with 25 branches worldwide - 17 in the UAE, one in Saudi Arabia, two each in Bahrain and Oman and three in India, in addition to procurement offices in China and Canada. Danube has a team of 1000 people working from strategic locations in across the Emirates, including Jebel Ali, Deira and Abu Dhabi. The company has been and is currently involved in major projects across the UAE, Oman and Bahrain, including Emirates Hills, the Burj Al Arab, Shangri-La Hotel, Grand Hyatt, Motor City, Burj Dubai, Dubai Airport Terminal 3, Yas Island, Reem Island, Saadiyat Island, and Al Raha Beach Hotel, among others.

Rizwan Sajan named ‘Businessman of the year at Ahlan Masala Awards 2010

Rizwan Sajan named ‘Businessman of the year’ at Ahlan! Masala Awards 2010



Chairman of Danube Building Materials lauded for effective leadership and pioneering efforts in construction building materials industry



December 19, 2010



Danube Building Materials, the leader in construction, building materials and shop fitting industries, has announced that its Chairman, Rizwan Sajan, has been named ‘Businessman of the year’ at this year’s edition of the Ahlan! Masala Awards 2010, held recently at the Atlantis, The Palm in Dubai, UAE. Sajan was cited for his leadership in increasing the growth of the Danube Group into an AED 1 billion conglomerate - effectively driving in growth and increased revenues with the launch of the Danube BUILDMART chain despite the global financial crisis.



In securing the ‘Businessman of the year’ award, Sajan’s excellent leadership, dynamism in strategy, and ability to expand the growth of Danube, both in terms of people and partnerships, were key factors in bagging the award. Within the last five years, Danube has registered exponential growth in revenues, which has exceeded AED 1 billion in 2009, an investment of AED 100 million in the expansion of its ‘Danube BUILDMART’ concept across the GCC, and the addition of 350 staff during the height of the recession. The company, which is known to provide world class construction building materials and interiors and exteriors products and services, recently inaugurated its AED 50 million 'Danube BUILDMART' in Dalma Mall, Abu Dhabi, the largest of all showrooms opened by the company, and prior to that the opening of its AED 15 million store under the same banner in Ibn Battuta Mall, Dubai.



“I am very humbled with this award and the confidence they have placed in me not only recognizes the hard work I have put into the company but also affirms the dedication of Danube’s employees in helping us achieve success and growth,” said Rizwan Sajan, Chairman, Danube Building Materials. “Having been also recognized recently in the MRM Business Awards and the Dubai Quality Awards demonstrates our continued commitment towards providing our customers with world class construction building materials, interiors and exteriors products and anything they will need to improve infrastructure and the aesthetic value it holds.”



Bollywood’s top celebrities graced the evening’s affair with no less than living legend Amitabh Bacchan leading the list; followed by Hrithik Roshan, Karan Johar, Manish Maihotra, and Riya Sen. Also present during the awards were the honorable panel of judges headed by eminent personalities in Dubai including: Rekha Tourani, Falguni Mehta, Imran Choudhary, Raju Shroff, and K Rajaram. Sponsors for the event included Petrochem (Headline Sponsor), Audi Middle East, Exclusive Yachts, World Gold Council, Sukar.com, Supermax, Shoemart, Splash, Alkozay Tea, Dubai Outlet Mall, Prestige and Philips. Media Sponsors included Cool 94.7 FM, Khaleej Times and Zee Network.



About Danube Building Materials FZCO

Established in 1993, Danube Building Materials FZCO provides more than 25,000 products in stock and in-house value added services in all of its 17 showrooms across the UAE. The company operates from its head offices – a 285,000 square foot facility in Jafza north and a 365,000 square feet base in Jafza south, which houses its logistics centre, kiln drying facility, factory and warehouses. From a small trading firm, Danube has grown into one of the largest building materials company in the region, with 25 branches worldwide - 17 in the UAE, one in Saudi Arabia, two each in Bahrain and Oman and three in India, in addition to procurement offices in China and Canada. Danube has a team of 1000 people working from strategic locations in across the Emirates, including Jebel Ali, Deira and Abu Dhabi. The company has been and is currently involved in major projects across the UAE, Oman and Bahrain, including Emirates Hills, the Burj Al Arab, Shangri-La Hotel, Grand Hyatt, Motor City, Burj Dubai, Dubai Airport Terminal 3, Yas Island, Reem Island, Saadiyat Island, and Al Raha Beach Hotel, among others.

Danube Building Materials records 30 per cent overall growth in FY’09-‘10

Danube Building Materials records 30 per cent overall growth in FY’09-‘10

Leading manufacturer underlines strength amidst economic challenges

July 04, 2010

Danube Building Materials, the leader in construction, building materials and shop fitting industries, announced that it has achieved 30 per cent overall growth in FY’09-‘10. The excellent results the leading manufacturer has recorded underlines its strength despite the challenges posed by the dwindling market as a result of the recent global financial crisis. In addition to securing significant growth, the company has also undertaken major expansion initiatives, which has expanded its market reach further across the region, as well as to India, one of the world’s fastest-growing economies.

The most recent milestones achieved by Danube in the past fiscal year include the subsequent inauguration of two 'Danube BUILDMART' branches worth AED 15 million each – in Ibn Battuta Mall, Dubai and in Bawadi Mall, Al Ain. Further, the company also unveiled its ‘Danube BUILDMART’ branch in Mumbai, India, located within the city’s well-known Oberoi Mall on June 25, 2010, marking its first international branch outside of the GCC.

“The growth we have seen for FY’09-’10 is a true testament to our strength and resilience, as well as our capacity to meet customer demands, which has evolved significantly due to the unique situation created by the global financial meltdown,” said Rizwan Sajan, Chairman, Danube Building Materials. “This success has been the result of our foresight, strong strategies, and ultimately, the value for money we offer to our customers. In addition to launching new stores, we have also invested in expanding our production capacity, while maintaining unwavering focus on ensuring the quality of all our products.”

Being built as part of its expansion plan in the coming years, the company has invested AED 50 million in a manufacturing facility located in TechnoPark, Dubai, to boost its production volumes and meet the demand as the market approaches full recovery. Spanning 1.3 million square feet, the new facility will be completed in phases and is expected to commence operations by early 2011. As a testament to the overall success of Danube, a certificate for the ‘Dubai Quality Appreciation Programme’ (DQAP) has been awarded to the company in April this year, in recognition of its noteworthy activities and achievements.

About Danube Building Materials FZCO
Established in 1993, Danube Building Materials FZCO provides more than 15,000 products in stock and in-house value added services in all of its 14 showrooms across the UAE. The company operates from its head offices – a 285,000 square foot facility in Jafza north and a 365,000 square feet base in Jafza south, which houses its logistics centre, kiln drying facility, factory and warehouses. From a small trading firm, Danube has grown into one of the largest building materials company in the region, with 18 branches worldwide - 13 in the UAE, 2 in Oman, 1 each in Bahrain, Saudi Arabia and India, in addition to procurement offices in China and Canada. Danube has a team of 1000 people working from strategic locations in across the Emirates, including Jebel Ali, Deira and Abu Dhabi. The company has been and is currently involved in major projects across the UAE, Oman and Bahrain, including Emirates Hills, the Burj Al Arab, Shangri-La Hotel, Grand Hyatt, Motor City, Burj Dubai, Dubai Airport Terminal 3, Yas Island, Reem Island, Saadiyat Island, and Al Raha Beach Hotel, among others.