Jordan-based air express company, Aramex, has identified Iraq and Pakistan as priority markets for its short-term expansion needs.
Having gained from two major acquisitions in the last 12 months, Aramex is seriously exploring new ones, added Fadi Ghandour, president and chief executive.
"There are four or five companies that are being looked at. It could be in the publication distribution business - we feel it has operational synergies with our main business."
Aramex ventured into the publication distribution line last year by buying out one of Jordan's biggest firms - Jordan Distribution Agency. Prior to that, it acquired Memo Express, which had extensive interests in the UAE.
For Iraq, the company recently signed up a local partner there to handle its shipments via road. In doing so, Aramex became the first courier company to start operating in post-war Iraq.
"As and when the laws are clarified, we will expand our presence there and, if it so allows, go in on our own, which has always been our management practice," said Ghandour.
"Pakistan is another market where we will be adding new resources to grow our interests. These two markets will require a lot of our time and attention in the near term. Our Indian operations has given us a big boost, especially on the topline numbers. On the bottomline, we believe there is still room for more improvement."
Aramex came out with a strong 18 per cent growth in revenues to total $137.6 million in 2002. Operating income was up an even healthier 28 per cent to $7.7 million.
Aramex - now majority-owned by a Dubai-based investment house Abraaj (formerly Rasmala Buyout Fund) - has its corporate head office in Jordan, but has Dubai as its operational hub.
Apart from the air express side, freight forwarding and express trucking services pulled their weight in the company's 2002 numbers.
"We invested heavily in the express trucking services out of Dubai and Jebel Ali Free Zone, especially for electronics distribution, to the rest of the Gulf states and it has paid off," said Ghandour, who holds 26 per cent in Aramex.
"This is certainly not a low yield business when deliveries are made door-to-door within a 24 or 48 hour basis."
For 2003, the company is targeting revenues of $165 million and a net profit of $8 million. And by 2005, its sights are set on breaching the $200 million mark.
Gulf News
