T Nagadi-made box culverts on their way to a customer
ncreased spending by the Saudi Government and private establishments on construction projects has prompted T Nagadi Preformed Concrete Factory to install new equipment and widen its offerings. The company recently set up two machines to produce pipes of inner diameters of 300 mm to 2,000 mm. It now has nine pipe-making machines with capability to produce pipes of up to 3,600 mm inner dia. Five other machines exist to produce various types of manholes and box culverts. Expansions are ongoing including adding equipment to produce hollow core slabs and pre-stressed slabs. 'The machines are expected to be in our plant in Yanbu Al Nakhal soon. We have plans to commence production in the fourth quarter,' said area manager VK Gopalkrishnan. Also to be installed by the end of June at the company’s Riyadh production site is a wire drawing machine. All the new machines are being imported from Belgium and Italy. Riyadh-based T Nagadi manufactures reinforced concrete (RC) pipes and jacking pipes with internal linings of high density polyethylene, PVC or GRP. The product range includes various kinds of manholes including handholes and those for stormwater drainage, telecommunication and sewers. The company’s pre-cast elements follow client specifications. Also manufactured at T Nagadi facilities are cable tiles, interlocking pavers, masonry blocks and precast fence walls. The company has three production facilities, one in Riyadh, another in Yanbu Al Nakhal and a third in Madinat Yanbu Al Sinayat, all of which occupy a total area of 300,000 sq m. 'In view of the large area we have for production, we have nearly unlimited capacity to meet requirements anywhere in the kingdom,' commented Gopalkrishnan. The company currently has capacity to produce 200,000 cu m of concrete which can be upgraded on demand. The company, owned fully by Sheikh Tarik Mohammed Ibrahim Nagadi, has currently no international collaboration. All its machines are sourced in Europe and come with the technical support of the manufacturers. T Nagadi is also a member of the Jacking Pipe Manufacturers’ Association in England. Improved sales The company’ sales of SR215 million ($57.3 million) in 2010 was an improvement over the previous year’s figure of SR210 million. The first quarter of this year yielded SR55 million. 'The global recession did not affect the company due to the region’s strong economy. Demand is rising in Saudi Arabia because of various expansion projects,' commented Gopalkrishnan. The largest contributors to T Nagadi’s sales came from infrastructure products such as pipes and manholes, these accounting for around 50 per cent of total turnover. Jacking pipes loaded on to a vehicle The company is now looking at Qatar to fuel its growth considering the huge investments that will be made on infrastructure and construction projects ahead of the soccer World Cup. A sales office will open soon in Doha. The company also has Bahrain within its radar. Currently the company is implementing orders for sewer manholes and jacking pipes it received from contractors Bin Sammar, Al Jazea, Al Rajhi Construction, Al Muhaidib, Mashael Al Rowad, Abdullah Al Sayegh & Sons and Al Marafik Construction and Eastern Projects. The company is also supplying material to the Ministry of Water and Electricity. Its ongoing contracts include supplying telecommunications manholes and handholes to Saudi Telecom, Mobily and Zain. As much as 90 per cent of its raw material requirements include steel, cement, sand, aggregates and chemicals, lining material and collar plates come from the Saudi market. Items such as spare parts and cast iron frames and covers are imported as they are not freely available in the local market. Gopalkrishnan commented that profits were hit by frequent hikes in raw material prices with contractors unwilling to compensate the price increase. 'Competition is tough and prices are not stable and we suffer much from this,' he said. That is not the only gripe. T Nagadi has suffered from dumping. 'While competition conducted in the right manner could be good for business, it can be poor and dirty as well. We’re suffering. Customers are being offered ‘unimaginable discounts’ by competitors. In this way, none of us will benefit except the contractor.' This is clearly a buyers’ market, as Gopalkrishnan has explained. Contractors delay payments and when reminded respond by buying from other suppliers. 'In this way our money is blocked and we lose the business.'
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