We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sun 27 Mar 2016 12:33 PM

Font Size

- Aa +

UAE dairy firm plans $21m spend to raise production, expand

Al Rawabi says money will also be spent on entering new markets across the Middle East and Africa

UAE dairy firm plans $21m spend to raise production, expand

Al Rawabi, the UAE-based dairy producer, has announced that it is planning to invest AED80 million ($21.7 million) in 2016 to enhance production and to enter new export markets.

Company officials said that the new investment follows last year's AED25 million spending on cold storage infrastructure.

Abdallah Sultan Al Owais, chairman, Al Rawabi Dairy Company, said: "In 2015, we grew by 15 percent compared to an industry average of 7 percent. This achievement is the result of strategic thinking, phased investments over the years, innovation and commitment.

"We have an ambitious road ahead and our mission is to be a MENA brand by 2020 with presence in key markets across the region," he said, adding that the company is confident that it will grow by 15 percent in 2016.

As part of streamlining processes, Al Rawabi said it will also centralise operations of stores for more effective supply chain management and increased productivity.

Currently, Al Rawabi produces 175,000 litres of fresh juice products and 325,000 litres of dairy products daily.

The company invested AED125 million to expand farm facilities and dairy cattle in 2013 and another AED22 million in 2014 in new third generation filling and pasteurisation lines.

Dr Ahmed El Tigani, CEO, said: "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."

This year it has plans to enter Bahrain after debuting in Kuwait in 2015. Al Rawabi directly distributes to Oman and Qatar and exports its products to Iraq, Libya, Sudan and Yemen.

"We are also conducting a feasibility study to explore setting up an operations base in Saudi Arabia. On our home turf in the UAE, we are also currently in planning and feasibility study phase for a new dairy farm in Abu Dhabi," El Tigani said.

Digital magazine: Read the latest edition of Arabian Business online

For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Mujeeb Haroon 4 years ago

Glad to hear about Progress, My best congratulation to Abdallah Sultan Al Owais Chairman Al Rawabi Dairy Co.