ArabianBusiness.com - Middle East Business News
Saturday, 06 September 2008 |
 
 
 
 
One step ahead
ArabianBusiness.com staff writer
Monday, 10 September 2007

Tolga Sezer said Aujan plans to become a global player.

When the directors of Aujan Industries unveiled a growth plan called ‘555' back in 2004, it created a stir in the region's FMCG sector, with many industry insiders intrigued to see how the 100 year old KSA beverage producer could achieve such a high level of growth amid fierce competition from multinational drinks brands.

But just four years on, Aujan is set to achieve its ambitious five-year plan of doubling its turnover to US$500 million by 2009, a full year early. Despite this, the company is showing no signs of complacency and is continuing to develop its brands and expand into new markets at a breakneck pace.

This is really a very exciting and interesting time because we can physically see the expansion happening. The factory in Tehran will provide the extra capacity for us to fully supply the Iran market and then continue with our expansion into the CIS markets and even into Russia.

Most recently, Aujan has set its sights on a new phase of expansion that will see the it consolidate its position in Iran and push into new markets including Iraq, India, and CIS countries. Indeed, in the past month, the company revealed that it is investing some US$100 million to establish two factories in Tehran, Iran. These factories - a bottling plant and can-making factory - should be ready by the end of this year and will initially produce Aujan's Rani products for the Iranian market and key export countries such as CIS nations.

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"The project is progressing very well," said Tolga Sezer, Aujan's executive vice president. "The can-manufacturing plant will be online by the last quarter and at the end of the year our bottling plant will be ready, and next year the entire supplies for Iran will be supplied the Tehran factories," Sezer said. "This is really a very exciting and interesting time because we can physically see the expansion happening," he added. "The factory in Tehran will provide the extra capacity for us to fully supply the Iran market and then continue with our expansion into the CIS markets, and even into Russia. We have already started exporting to markets in Kazakhstan, Uzbekistan, Azerbaijan."

Sezer added that Aujan is also experiencing strong growth in other key export markets, and particularly North African countries such as Egypt. "We recently conducted a product concept study in Egypt and we received very good results, and based on those results we will be establishing a new distribution set-up in Egypt," he said.

Turkey is another market that also has potential, and Aujan already has plans to carry out product concept tests in the country. Aujan is also carrying out product concept testing in the Indian and South African markets and based on initial results it expects to stage a test launch in Bombay.

This marks a significant change from Aujan's approach to export markets in the past, when exports were often made on an ad-hoc basis. Its approach to international markets is now far more holistic. "It is really about understanding the markets, the consumer, setting up proper distribution channels and reviewing these markets for the future," Sezer said. "We are in the process of doing that and we are reviewing these markets for the future, especially for key markets such as Lybia, Egypt, Sudan, Syria and South Africa. Our approach is always to look at all aspects of the business model, understanding the consumer and delivering the business and the brands."

But while Aujan is keen to realise its potential in new markets, it is also keeping a careful eye on its core markets in the GCC. To this end, the company recently increased the capacity of its factory in Dubai Investment Park by 25% and has also modernised its plant in Dammam, KSA.

"For our home markets and especially in KSA we have just commissioned another study to really understand the beverages segment and to identify future potential and gaps in our portfolio," Sezer said. "At the same time we are really looking at our entire set up, including distribution, to ensure it is fit for growth in KSA."


In a bid to keep pace with this level of growth, Aujan is also re-structuring important parts of its business operation, with the creation of separate business units to oversee different markets. "This is the way we will try to manage our expansion," Sezer said. "One hub will be KSA and Yemen, another will be for the Gulf and Bahrain, and another will be for the Levant - Iraq, Iran and Jordan. Each unit will have business unit managers, fully accountable top line and bottom line." He added that another unit will look after international markets.

In line with this geographic expansion, Aujan has been investing heavily in its brands, with brand extensions and completely new product launches. The company has launched new varieties of the popular Rani Float drink, including orange and raspberry, pineapple and banana, and banana and strawberry flavours. And as one of Aujan's flagship brands, the company is optimistic that the range will be instrumental in helping it to enter the new international markets successfully. "With Float we have a unique opportunity and this can be a growth proposition. I strongly believe in the potential of Rani," Sezer said.

"Rani Float with its unique proposition can be a global brand, and our major and rapid expansion proves the point. Whatever market we enter...Rani is always successful. It is definitely the growth engine of the company and this year it will be a US$250 million brand."

Aujan is working on a new phase of TVC advertising for Rani Float in Dubai. The adverts involve a stuntman from the UK, but the company is reluctant to reveal further details at the moment.

In other developments, Aujan has re-launched its children's beverages range, Hani, with new packaging and new variants, including bubble-gum flavour, apple and kiwi flavour, and Hani with jelly. Feedback from the market has already been encouraging, according to Sezer.

"It is a very interesting range, especially with all the work we are doing with kids. This range of products is well appreciated by kids," Sezer said. "They love it, and this is what they want." He added that Hani is being supported by a special TVC on children's channels in the region.

With Ramadan only a month away, Aujan's attention is now also fixed on one of its oldest products, Vimto cordial. The drink, which is well established as a staple Ramadan product, will be promoted by a multi-million dollar TVC campaign. These adverts will show humourous scenarios in which there is a shortage of Vimto cordial, according to Sezer.

"We have a very interesting campaign," Sezer said. "Vimto cordial has a very strong presence in Ramadan.

That is why we have developed ad-entertainments, which is a new concept. Our communications will hopefully add some sweetness to the Ramadan month...It is the ultimate family month, and the role of Vimto is to add some sweetness to it."



 
Comments (18)

Manchester City's future
Posted by Mohamade Iqbal Oojageer, Port-Louis, Mauritius on 3 September 2008 at 14:14 UAE time

Dr Sulaiman
Congratulations to you as the new big boss of Manchester City. With your massive investments, you will prove to the world, Insha Allah, your vision is gold and City can become the biggest club in the world and new English reference for quality football. I am a seasoned Sports Journalist and I can foresee success and positive revolution in British sports, especially soccer.
Adel Ali-Last Laugh
Posted by Biniraj, Sharjah, UAE on 29 July 2008 at 12:27 UAE time

It was indeed right decision launching of Air Arabia. I described Air Arabia as REAL AIRLINE. .. i noticed one thing that, they are on time, they are on line, they are on right price, that is what we need.

I am proud to say as a Air Arabian traveller, and I salue Mr. Adel Ali for his visions.
GCC s top 100 CEO s...An analysis
Posted by Ataur Rahman ,Business Development Manager, Dubai, UAE on 10 July 2008 at 20:39 UAE time

An analysis of the the top 100 in GCC reveals a shocking statistic too..63% of them are from UAE, 14% Saudi, 13%Kuwait, 6% Qatar, 4% Bahrain.
More shocking to me is that in Energy sector only there are 4%..in construction 4% Media & Marketing, 4% Politics & Economic 4% Banking & Finance 20% Real estate 23%
Why inspite of all the boom in petrol price there are just 4% of them belongs to this sector. I demand an explanation.
Dubai
Posted by john, New York, US on 25 May 2008 at 16:48 UAE time


Dubai's real estate watchdog on Sunday launched its own magazine in an effort to address investor concerns over a lack of transparency in the market.
Len's request for art galleries in the UAE
Posted by stuart mayhead, Abu Dhabi, UAE on 21 April 2008 at 09:21 UAE time


Hi Len if you visit www.artinthecity.com you will find and Art Map of Abu Dhabi, Dubai and Sharjah which shows all the local galleries and has a calendar of events noting all the exhibitions. If you sign up for them you will receive fortnightly reminders.
art galleries
Posted by len on 20 April 2008 at 14:15 UAE time

I'm looking for modern art galleries in your country. Can you help me with a list?

Editor's Reply Kindly visit www.timeoutdubai.com for a full list of art galleries in Dubai, or www.timeoutabudhabi.com for a full list in the capital.
commnet
Posted by Nabil Alwakidi, jeddah, KSA on 13 April 2008 at 10:24 UAE time


Dear Abdulkareem,

Perfect person on the right place, very difficult to find some one like you. this comment will show you how much we like your job.

Best of luck for everything!

Cheers,
Nabil Alwakidi
Success
Posted by shahla naim, AbuDhabi, U.A.E on 19 March 2008 at 11:18 UAE time

Success, from my point of view is 10%luck, 40%study, 50% hard work. Upon reading this article, I think am still at the first 10%.
Very proud to be a muslim after reading this article.
Posted by Nasrin Quraishi, Chennai, India on 5 March 2008 at 15:03 UAE time


Good Evening,

I am very happy and proud that I am living in this world where HRH Mr.Abdullah Al Awadi is living. I pray Almighty God to work under him atleast for a year.

Thank you
networking with your esteemed Arabbusiness
Posted by Safwat Faroun, Ramallah, Palestine on 13 February 2008 at 19:20 UAE time

I am currently residing in the west bank, and I am looking for jobs. Your Arabbusiness could be of indispensable value to me. Keep up the good work!
Abdullah Al Awadi's name in Arabic
Posted by Jehad M. Shaban, Kuwait, Kuwait on 9 December 2007 at 15:57 UAE time

As per your Arabic article of the top 100's CEO's in the GCC, would you kindly correct Mr.Abdullah Al Awadi's name in Arabic to: عبد الله العوضي and the company name to: Al-Ahlia Holding Company. Thank you.
Saudi ARAMCO
Posted by Nand, Riyadh, Saudi Arabia on 9 December 2007 at 11:41 UAE time


Wonder what standing Saudi ARAMCO has? Is it not among the most admired companies in the GCC?

Posted by Prabal Rai, kathmandu, nepal on 6 December 2007 at 12:07 UAE time


Dear Sir,
How possibly I can contact direct to Amir Alwalid Bin Talal for my own personal plea concerning my occupational hazzards in compny own by him? Please guide me in this regards.
Yours truly
Prabal Rai
Kathmandu Nepal
Energy Industry
Posted by Ibrahim, Abu Dhabi, UAE on 6 December 2007 at 09:43 UAE time


I've worked in the oilfield since 1989, mostly in the UAE but also all over the MENA region, and this is the first time I've heard of this company (SS Lootah). What about Al-Dulaimi group (Qatar) or Mohammed Barwani (Oman) or AlMansoori (UAE)? I wonder what the definition of "Energy Industry" is? I suspect the people who selected the winners don't understand how our industry works.
Interesting information
Posted by Omair bin Zahid Al Husain on 5 December 2007 at 22:07 UAE time

It is interesting information. Being an entrepreneur myself, I don't mind knowing who could be of advantage to me and where I can find products and/or services I need. I wonder what was the criteria for selection though, but a wiseman said that the modern day winner in the corporate world is the one who could "learn, unlearn and relearn!" Keep us up to date Arabian Business.com. Thank you very much.
Wonderful Article
Posted by Nikhil Sindhu on 5 December 2007 at 19:03 UAE time


Thank you Anil for the insight about an extraordinary person.
Amazing
Posted by Faris AlQURESHI, Riyadh, Saudi Arabia on 5 December 2007 at 12:53 UAE time


Dear Anil,

The best best interview for the most admiring and decent personality.

Best of luck for everything!

Cheers,
Faris
CEO Vision Drives the list
Posted by Prof Philbert, Salmiya/ Kuwait, Kuwait on 5 December 2007 at 10:57 UAE time


If the company is going to achieve something of some recognition, they must follow three I's - Innovation, Infrastructure and Integration.

Innovation is importnat to give the company an ability to extend the product and service life cycle from point of stagnation to new thinking - a sort of sigmooid curve that repeats itself - saying in simple words - an old wine in a new bottle.

Infrastructure for aiding innocation is another key dimension that can add value to corporate growth. A CEO must take a balaced scorecard to organizational development.

Integration is keeping all elements of the orgnization togehter and take a unified approach to the big picture.
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