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Al Rawabi plans to invest $21.7m

April 2016

UAE-based Al Rawabi, a leading producer of dairy products and juices, has announced it will invest Dh80 million ($21.7 million) to boost its profile from the production and marketing standpoints.

Some of the investment will go into building a new production unit to raise output levels and create new products, it said. The latest initiative follows an investment of Dh25 million made last year for creating a state-of-the-art cold storage facility.

The company also recently elevated Dr Ahmed El Tigani as the CEO of the company.

Abdallah Sultan Al Owais, chairman, Al Rawabi Dairy Company, said: “In 2015, we grew by 15 per cent compared with 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.” 

Al Owais also noted that the company is confident 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.

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 to expand farm facilities and dairy cattle in 2013 and another Dh22 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, it plans to introduce a range of cheeses and to expand into new categories of products, including ice creams.

Chief executive 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.”




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