23 May 2015
RIYADH: As the billionaire founder and chairman of Danube Group, one of the Gulf's most successful business conglomerates, Rizwan Sajan is a well-known name in the business circles of the Gulf countries, especially in Saudi Arabia and the UAE. 

But the story of Sajan is fascinating and inspiring for everyone, more so far young business leaders. 
In fact, his is the rags-to-riches success story of an ordinary man, who made it big in life after he started his venture in Dubai in 1991 with no money in his wallet. 

But Sajan wasn't one of those who was to accept misery as his destiny. 

He was to write his own fate; so he has, that too in golden letters today. In fact, financial constraints failed to deter Sajan from pursuing his business plans. He went ahead with scripting a brilliant success story and established his own business successfully in the UAE in 1993. What followed is history. 

Now, Sajan is the founder and chairman of a billion dollar business empire called Danube Group. 

Arab News Riyadh Bureau Chief Ghazanfar Ali Khan caught up with Sajan for an interview recently in which the Danube chief spoke about his business, future plans and his vision for Saudi Arabia. 
Here are the excerpts of the interview-- 
 
Q: Danube Group is now focusing on Saudi market. I understand that you have an ambitious expansion plan for Saudi Arabia, a country with very stable political and economic systems with a lot of liquidity in the market?

A: Danube is lauded as the number one building materials company in the MENA region with our presence including Saudi Arabia, UAE, Oman, Bahrain, Qatar, Africa and India, in addition to procurement offices in China and Canada. 

Keeping pace with the trend of the emerging markets, we are also expanding extensively in other areas of African Markets. 

Considering the growing demand of construction and building material market in the Middle East, Danube Group is concentrating on expanding in Saudi Arabia. 

With our base already set in the UAE and other GCC markets, we wish to concentrate more in the Saudi region and ensure supply of such high-quality products at reasonable costs. 

Once we establish in Riyadh, we will open few stores in Jeddah and Dammam region as well in the coming years.
 
Q: Please give me a brief background about your visit to Riyadh and about the new flagship store that has been opened in the city center of Riyadh?

A: Danube Home, the retail and home decor wing of the group recently inaugurated its first store in Riyadh, further increasing our presence in the Kingdom's fast developing interiors market. 

The brand is a one-stop-shop supplying building materials and home decor furnishing for our home. 

Our vast range of product items available in the store consist of flooring, ceiling, doors, windows, garden, furniture, carpets, curtains, wallpapers, tiles, bathroom and many more. 

This concept is one of its kind started by Danube Home in the entire Middle East region. 
We will soon be coming up with more branches across Saudi Arabia.
 
Q: How many Danube showrooms will be opened in the Kingdom within next three years from now?
A: Currently Danube Group has 10 building material stores in Saudi Arabia spread across the Country. 

Danube Home is the first showroom recently opened that will look into the client requirement of providing both hard and soft furnishing under the same roof.

At this stage, we are still testing waters in the market. So far, the brand has received great customer response and if we see the same trend in the coming years, we can look forward to the opening many more such stores end of next year 2016.
 
Q: Besides the Kingdom, which are the target markets globally for you? Do you have plans to expand the network of your stores and offices in some new regions or countries in near future?

A: Danube Group is now the market leader in building materials in this region, created through years of astute growth. 

Today, the group has a sprawling empire with 40 showrooms/offices spread across the Gulf, India and China, with 2,200 plus employees and revenues on track to cross a billion dollars this year. 

We offer a wide portfolio of products into building materials like MDF, plywood, boards, exotic timber, veneer, laminates, aluminum cladding, steel, hardware, ceramic tiles, wall panel, chandeliers, sanitary ware, kitchen, glass, acrylic, electrical, doors, flooring, ceiling, paints, fire solutions and much more. 

The group is looking forward to tap other market segments in countries such as Russia and CIS Countries.
 
Q: You have successfully ventured into real estate business of late? Can you share the details of your projects with special reference to Saudi Arabia and the UAE.

A: Danube Group entered the Realty market in June 2014 with the launch of its property arm 'Danube Properties' in the UAE and its first villa project 'Dreamz by Danube'. 

Dreams by Danube' is a premium residential project being constructed in Al Furjan area of Dubai. 
The massive project will comprise 171 attractive town houses, and has received a whopping investment of AED500 million from the company. 

The project is conveniently located at a distance of 10 minutes from the Ibn Battuta mall and also near to the EXPO 2020 site. 

The community is expected to house Dubai's growing urban populace, who would be drawn to the project due to the fact that the area consists of excellent infrastructure and transportation facilities that include elegant roads and well-connected metro services.

The homes, beginning from a reasonable price of AED2.5 million, will be an awe-inspiring blend of contemporary country housing architecture and modern innovative designs. 

The villas will be offered in three and four bedroom categories and will showcase elegance and finesse with Italian marbles, modular kitchen, luxurious bathrooms with classic sanitary ware and Jacuzzis; all from Danube's acclaimed array of products. 

The project has proved to be a record-breaking success, being sold out within three hours on its launching day last June thereby becoming a milestone in Danube's history.

This residential project fused quality and lower price together therefore gaining the attention and confidence of a much wider class of people in Dubai. 

We have awarded the official contract to United Engineering Construction Co. (UNEC) and it's expected to be completed by end of 2016.

The second project was launched in Jan 2015, Glitz Residence by Danube, Which consists of Studio, Single and Double BHK in total 292 apartments (G + 8 two towers) in Studio City next to Motor City. The entire project was sold in 2 Hours on the launch day. Total project value AED300 million. 
 
Q: How do you see the real estate market till 2020 and beyond in the UAE, a focused market for you?
A: Honestly, Dubai is underrated when it comes to the real estate market. 

If you compare it to the top cities in the world like Hong Kong, Singapore and London, Dubai is 1/3 of the price in the industry. 

But with the coming Expo 2020, the demand will surely come over to Dubai where people will want to come and see the city. The year 2020 is definitely not what Dubai is only targeting. 

The city is always looking at making itself the best financial center and the best tourist attraction in the world. There is absolutely a higher demand for 2020 and beyond.
 Full report -- www.arabnews.com

Q: Danube Group has received several awards and commendations for its role as a company and for several community initiatives within the framework of its Corporate Social Responsibility. Please give a brief account of the commendations won by your company.

A: The group has received prestigious awards for its excellent leadership, strategic concepts and initiatives.

These awards include the Mohammed bin Rashid Al-Maktoum Business Excellence Award; Dubai Quality Award Both ; Dubai Customs Award, the Dubai Logistics and Supply Chain Award and UAE's Top 20 Performers. Danube is the first building material company in UAE to be awarded the Mohammed bin Rashid Al-Maktoum (MRM) Business Award and DQA -- Dubai Quality Award held under the patronage of Sheikh Mohammed bin Rashid Al-Maktoum for consecutive two years.

Danube Group has recently joined hands with Dubai Metro's Naming Rights Project launched by the Roads and Transport Authority (RTA), securing naming rights for the Jebel Ali Industrial Station, which is now renamed as Danube Metro Station. To this end, I would like to say that Danube is the only expatriate-owned company to own a metro station in Dubai.

Q: You are also expanding your footprints in India. What is the brand for India and how it is doing sir? 

A: Our decision to enter into Indian retail market has been very recent, where Danube Home has partnered with its franchise to build the brand. 

The first one will come in Noida which we have signed up with some big builder over there. 
They are opening similar stores with the same concept of Danube Home as we opened in this region.
 
Q: Going back to your real estate projects. In fact, in terms of real estate property, you have made very successful inroads and your Dreamz property and Glitz property were sold like hotcakes in the UAE. So what makes you out of that and what are the new plans? 

A: The idea of entering Dubai's real estate market was always in the plan but we wanted to take our time to be able to justify our focus on this vertical integration. The UAE, especially Dubai, has always been known for its property market across the globe. 

The market has gradually picked up in the past few years and after thorough research and planning with my team, combined with our experiences, we decided to take the current opportunities in this sector. 

As Danube Properties, we believe in the concept of luxury living at affordable prices. 

All our properties have been designed and priced around the same concept in order for people to be able to invest in it without any financial stress.

We are happy that both the projects were sold instantly. Currently, we have plans of expansion in our property division and soon will be launching our third project. 
 
Q: What has been the company's performance during 2014 in terms of sales and growth? Do you find them encouraging, which can lead the company to make inroads in new segments of business?

A: At the close of 2014, Danube Group announced staggering annual financial results for the firm. 

The company recorded an annual turnover of AED2.3 billion, that is 15 percent increase over 2013 closing. 
The brand had quoted a 16 percent sales growth in the beginning of 2014 and further forecasted to close on an increase of 15 percent by the end of the year.

In 2014, the No 1 building material company in the region also saw the exhilarating performance for their real estate division, Danube Properties which scored a revenue of AED500 million during the year, in addition to the core business revenues of 2.3 billion. 

This in total makes the year on turnover as AED2.8 billion.

The year 2015 will see broadening of the business in terms of other verticals, apart from the primary Danube Home and real estate. 

Danube will take a leap, by branching out in retail sector with men's fashion brand, toward the end of 2015. 

The launch of the first showroom is expected toward the second half of the year, with plans to expand and have three fully functional showrooms by the end of 2015. 

Q: The Gulf countries especially the Kingdom where you are opening such big stores have intensified plans to nationalize their workforce. Do you accept it as a challenge or an opportunity? What is your comment, have you employed some Saudis so far?

A: We always comply and cater to the requirements of Saudi government. To be honest with you, I must say that I have found some exceptionally good Saudis who are currently working in our company in Danube. 
Currently, 26 percent of our work force is Saudi nationals. 
 
Q: You have entered into real estate business with a bang? Which are the major projects you launched in the Gulf?

A: Danube Properties, the property arm of building materials firm Danube, has started work on its two real estate projects in Dubai. 

Dreamz by Danube', their maiden project is a premium residential project being constructed in Al-Furjan area of Dubai. 

The massive project will comprise 171 attractive town houses, and has received a whopping investment of AED500 million from the company. 

The project is conveniently located at a distance of 10 minutes from the Ibn Battuta mall and also near to the EXPO 2020 site. 

The community is expected to house Dubai's growing urban populace, who would be drawn to the project due to the fact that the area consists of excellent infrastructure and transportation facilities that include elegant roads and well-connected metro services.

The homes, beginning from a reasonable price of AED2.5 million, will be an awe-inspiring blend of contemporary country housing architecture and modern innovative designs. 

The villas will be offered in the two, three and four bedroom categories and will showcase elegance and finesse with Italian marbles, modular kitchen, luxurious bathrooms with classic sanitary ware and Jacuzzis; all from Danube's acclaimed array of products. 

Glitz residence by Danube, the second property project undertaken by the firm will be constructed at the prime location of Dubai Studio City offering consumers spectacular views of Dubai's cityscape. 

The cluster of apartment buildings will redefine urban lifestyles with 292 luxury affordable apartment units available in a mix of studio, one, two and three bedroom apartments. 

Glitz by Danube will cater to the increase in demand for luxury affordable residential property from local and regional buyers looking for contemporary designed apartments in a centrally located community with a wide range of leisure and community facilities. 

The spacious homes, designed to the highest standards of aesthetics, range in housing area from 470 to 1,645 sq ft in each apartment block of eight levels. 

The apartments are a unique combination of contemporary design, luxury and comfort within a setting of lush landscape. 

Each flat will come equipped with superior lifestyle amenities and premium finishing from the country's best building materials and interior supplier with the promise to deliver some exceptional features at extremely reasonable prices. 

The building will include a swimming pool, roof top golf course, kid's play area cum party hall, leisure deck with a barbeque station, state-of-the-art health club and much more.

Both projects enjoyed strong investor interest with all units being sold out within hours of launch.

© Arab News 2015