Part of a broader strategy to expand its reach in the international markets, Ajmal Perfumes has commissioned a Dh30 million production facility in Dubai's Al Quoz Industrial Area. This is the company's second manufacturing plant in Dubai.
"While we did have some of our brands available internationally, in the past we were not aggressive enough in those markets. Neither did we have the capacity," said Nazir Ajmal, marketing director and chief perfumer.
"That would change with the new capacities that we have with the second plant, and gaining more access to the Western markets would be a big part of our strategy in the next five years or so."
The plant was opened by Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance and Industry.
Currently, overseas sales make up less than 20 per cent of Ajmal's sales.
In the recent past, contract manufacturing for outside brands has been a key component of Ajmal's earnings. Sales in the Gulf comprise up to 70 per cent of the company's total.
The new capacity will also come in handy as Ajmal seeks to consolidate its standing in the Middle East's perfume industry, valued at $2 billion and growing at double-digit rates.
The new plant has a built-up area of 40,000 square feet with production tuned to deliver 50,000 bottles of fragrance a day. Also, another 30,000 square feet of area adjoining the plant is owned by the company, and could be developed if the demand is there, said Ajmal.The existing plant would be used to make traditional Arabic fragrances.
The official said the company would be open in future to the prospect of an alliance with a "strategic investor or partner", even one which would involve shareholding.
On the possibility of taking its manufacturing interests to some of the neighbouring markets, Ajmal said: "If the demand is there and its meets our business interests, we could do it anywhere. There are lots of other firms that are getting their brands made in some of these markets already."
Retailing is another area on which Ajmal has been focussing. This brings in at least 50 per cent of the turnover now and the margins are quite good, said Ajmal.
"Further expansion is definitely on the cards, although the locations and the outlet numbers are to be decided."
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