By Michael Thorne
Consumer electronics vendor aims to streamline its regional inventory supply chain.
Consumer electronics and household appliance vendor Elekta has revealed plans to establish a major distribution hub in Dubai’s Jebel Ali Free Zone.
The new facility, which will cover 250,000 square feet, is set to open in July 2007 and will replace Elekta’s current network of six distribution warehouses in the UAE.
It will also include 10,000 square feet of office space to accommodate the company’s operations staff and senior management, establishing it as Elekta’s global headquarters.
“We are building the warehouse to a height of 12 metres to provide us with greater warehousing space,” Elekta Trading director Rohit Dev told ECN.
“In general, the height of warehousing space rarely exceeds six metres, however new developments in Europe, for example, are significantly taller.
“We’ve decided to adopt this latter approach as it will provide us with significantly more space despite the building boasting the same average footprint.”
Dev confirmed the new distribution centre would be located on a plot of land adjoining the existing Black and Decker head offices in the Jebel Ali Free Zone and have a capacity of five to seven thousand pallet positions.
“This will hugely benefit our channel partners in the Middle East,” Dev claimed.
“Elekta is one of the few companies that has close to 270 products in its range. We’re not only providing the service, new products and designs but we’re the best one stop shop for those businesses looking to distribute a comprehensive range of consumer electronics items.
“This new centre is set to create greater efficiencies in our supply chain and enable us to provide better service to our clients,” he added.
Elekta will invest around US$5 million in establishing the new warehouse and office facilities, Dev said.
He stressed the benefits of the new investment would provide significant returns for Elekta’s business across the Middle East and surrounding regions, including in India, where the company has enjoyed significant gains in recent years.
Elekta’s marketing activities for the Middle East, excluding countries where it has established a local presence, such as Saudi Arabia, will continue to be managed by the company’s existing Dubai office, which is located in Deira.
The company’s director also confirmed that Elekta was looking to expand further into the lucrative markets of Central and Eastern Africa.
Dev described these markets as potential commercial goldmines for his business, given the lack of international consumer electronics vendors currently operating in both regions.
He confirmed that Elekta is looking to sign distribution agreements servicing up to seven new markets although he was reluctant to reveal further details.
“We recently launched our range of products in Tanzania, a market we believe has enormous commercial potential,” he said.
“We’re currently negotiating further deals with partners targeting five to seven new markets.”