Aujan Industries has achieved spectacular spurts in revenues and looks set to make phenomenal progress in the Middle East and neighbouring markets with ambitious plans to expand production capacity.

In 2005 the company had announced a grand goal to achieve a turnover of $500 million in 2009, but strong performance since then has put it on track to accomplish the goal a year before time.
Aujan has seen its turnover of $280 million in 2005 race to $335 million in the following year. This year it is poised to cross the $400 mark. “I believe we will reach our 555 target ($500 million in 5 years with 5 brands) a year ahead of schedule,” said Aujan Industries chairman Sheikh Adel Aujan. He commented: “I am fortunate to have been able to work with such hard-working professional and motivated people. I have watched Aujan develop over the 40 years since I joined the company and am very proud of all our achievements.”
Two years ago the company diversified its manufacturing operations, setting up a facility at Dubai Investments Park and is shortly to launch its Iran factory. The company has invested $110 million in two facilities, one of which is a beverage-filling line and the other an aluminium can-manufacturing unit.
It is envisaged that the Iranian production will first cater to the 70-million Iranian market and with further increases in output it will look at markets beyond Iran, mainly states in the former Soviet Union.
Within the next five years, there could be two more plants, one in North Africa and the other in the Levant. Eventually the company will consider entering the vast Indian market.
Aujan is considering an IPO in early 2008 with the size of the public issue more than SR700 million. The company is currently valued at SR2.4 billion ($640 million).
The company’s roots go back to 1905 when the Saudi Aujan family established a general trading base in Bahrain. In time, one of the products they marketed, Vimto, grew in popularity in Saudi Arabia. The company moved its base to Saudi Arabia and commenced producing the drink in the kingdom. Vimto’s appeal developed so fast it is said to be a favourite drink during the holy month of Ramadhan when over 10 million bottles of the beverage are consumed.
Vimto though is not the flag-bearer of the Aujan range. That accolade goes to Rani, which now contributes some 70 per cent of the turnover in terms of volume with the remainder shared by Barbican, Vimto and other brands.
Rani became a successful product thanks to the fruit floats inserted in the drink, which was a novel concept when introduced more than 20 years ago. Rani started with orange floats, subsequently moving to pineapple and peach.
Aujan’s Hani brand is focused on children of six to 12 years. The packaging is similar to those for sports drinks with re-sealable caps.
In partnership with Unilever, Aujan launched Lipton ice tea in the Middle East, a region that traditionally consumed the beverage in hot form. “By pursuing an aggressive sampling programme, Aujan was able to break down the barriers to the unfamiliar presentation of a traditional drink,” the company said.
Other brands it markets are Three Diamonds, Pom and Canada Dry as well as Cadbury’s and Wrigley’s confectionery products.
Turnover received a fillip with the opening in November 2005 of a production facility at the Dubai Investments Park. There, for the first time, Barbican malt drinks were produced in addition to Vimto and Rani.
The main production facilities in Dammam have an annual capacity of more than 300 million litres and a billion cans or bottles. The Dubai facility was opened with more than half the Dammam capacity.
A key factor in Aujan’s success has been the distribution strategy which entails placing the products in consumers’ hands on time and in good condition. Three hundred mostly refrigerated vehicles unload Aujan brands on more than 27,000 outlets every week. According to the company, coverage is 100 per cent in supermarkets and wholesalers and 70 per cent in all retail outlets in GCC states.  Eighty per cent of all outlets are provided with company-owned coolers.
“All vehicles are fitted with Polestar global positioning systems for accurate tracking to ensure the most efficient distribution and merchandising support,” the company says.