30 November 2009
Saudi-based soft drinks maker Aujan Industries achieved 10 per cent growth this year, Executive Vice-Chairman Dr Kamel Abdullah has revealed.
This was despite the fact that 2009 was the toughest year the company had faced because of the fallout from the global financial crisis and the rise in the cost of raw materials.
Abdullah said this year's growth rate was half the level achieved in 2008, but added: "The percentage was good in comparison with those of our rivals in the UAE and the Gulf.
"We faced major difficulties, especially the rise in the cost of raw materials, and we have not increased the prices of our products. We competed well in the UAE and the Gulf markets and are in a good position."
Abdullah told Emirates Business Aujan planned to boost its growth in the UAE next year by about 20 per cent, revealing the company's market share in the country stood at 10 per cent compared with 20 per cent in Iran. And the company was working to boost production for Egypt and Iraq.
He said sales of Rani, Vimto and Barbican had reached $600 million (Dh2.2 billion) this year. The company has assets worth $400m, including a large plant in Dubai.
Abdullah said Aujan had announced it would turn into a public joint-stock company in 2008 or 2009, but had decided not to go ahead with an initial public offering. "We were thinking of offering some 40 per cent of the company in the local Saudi market to be exchanged by the largest number of shareholders," he said. "The reason was to protect the firm from any disputes among the family members and give them a chance to leave the company at any time without affecting its continuity - Aujan was established 100 years ago.
"There were two reasons behind the decision not to launch an IPO. The first one is the situation in 2008 and this year, when the markets were damaged by the fallout from the global crisis and the sudden rise in prices of raw materials. And the second reason is the success of investments in Iran and Iraq which boosted sales and secured liquidity. We are not now contemplating a public offering."
Saudi-based soft drinks maker Aujan Industries achieved 10 per cent growth this year, Executive Vice-Chairman Dr Kamel Abdullah has revealed.
This was despite the fact that 2009 was the toughest year the company had faced because of the fallout from the global financial crisis and the rise in the cost of raw materials.
Abdullah said this year's growth rate was half the level achieved in 2008, but added: "The percentage was good in comparison with those of our rivals in the UAE and the Gulf.
"We faced major difficulties, especially the rise in the cost of raw materials, and we have not increased the prices of our products. We competed well in the UAE and the Gulf markets and are in a good position."
Abdullah told Emirates Business Aujan planned to boost its growth in the UAE next year by about 20 per cent, revealing the company's market share in the country stood at 10 per cent compared with 20 per cent in Iran. And the company was working to boost production for Egypt and Iraq.
He said sales of Rani, Vimto and Barbican had reached $600 million (Dh2.2 billion) this year. The company has assets worth $400m, including a large plant in Dubai.
Abdullah said Aujan had announced it would turn into a public joint-stock company in 2008 or 2009, but had decided not to go ahead with an initial public offering. "We were thinking of offering some 40 per cent of the company in the local Saudi market to be exchanged by the largest number of shareholders," he said. "The reason was to protect the firm from any disputes among the family members and give them a chance to leave the company at any time without affecting its continuity - Aujan was established 100 years ago.
"There were two reasons behind the decision not to launch an IPO. The first one is the situation in 2008 and this year, when the markets were damaged by the fallout from the global crisis and the sudden rise in prices of raw materials. And the second reason is the success of investments in Iran and Iraq which boosted sales and secured liquidity. We are not now contemplating a public offering."
By Abdel Hai Mohamad
© Emirates Business 24/7 2009
