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News Highlights:
- Household appliance market revenue in the Middle East and Africa (MEA), region grew from US$6.3 billion (Dh23.12 billion) in 2017 to US$7.6 billion (Dh27.9 billion) in 2021;
- Revenue in the UAE’s vibrant household appliances segment is projected to reach US$332 million (Dh1.21 billion) in 2021;
- Revenue is expected to show a Compound Annual Growth Rate (CAGR) of 14.84 percent between 2021 and 2025, resulting in a projected market volume of US$577 million (Dh2.11 billion) by 2025;
- In the Household Appliances segment, the number of users is expected to amount to 2.9 million by 2025, resulting a user penetration level of 21.5 percent in 2021 and is expected to hit 28.2 percent by 2025;
KHIND, a global consumer electrical and electronics manufacturer also a smart solutions provider for cooling and lighting, has signed an agreement with retail giant Al Futtaim to distribute KHIND products in the consumer electronics segment across the UAE.
The agreement will boost the household appliance market revenue in the Middle East and Africa (MEA), region that has been growing from US$6.3 billion (Dh23.12 billion) in 2017 to US$7.6 billion (Dh27.9 billion) in 2021, according to Statista.com, a global digital market intelligence provider. Household appliance market revenue in the MEA is projected to grow to US$8.4 billion in 2023.
The agreement illustrates the shared commitment of both parties to further penetrate the market and broaden their reach within the Middle East region that will also help the market to grow in the next few years.
Adil Mistry, Group Chief Executive Officer, Khind Holdings Berhad, said, “We have enjoyed many longstanding vendor relationships throughout our years in business and we are pleased to strategically align ourselves with Al Futtaim’s strong distribution network. I hope this will be a winning combination for us.
“I strongly believe that right distributor enhances a company’s exposure in the product market and can give an edge in terms of speed and efficiency. This association will widen our customer reach and help us to grow faster in the region.”
KHIND, which looks after the market development for the brand in 15 key markets across the region, has recently relocated to a bigger regional head office to increase the brand’s presence and boost the region’s growing consumer electronics and home appliance market.
The agreement was signed at the Malaysia External Trade Development Corporation (MATRADE) in Dubai, in the presence of Mr. Omar Mohd Salleh, Malaysia’s Trade Commissioner to the Gulf region.
“The UAE is Malaysia's largest trading partner in GCC and both countries enjoy a strong bilateral relationship. The agreement between Khind Holdings Berhad, a major Malaysian electrical and household appliances brand, and Al Futtaim will help the company’s products reach a larger customer base in the UAE,” Mr Omar Mohd Salleh, Malaysia’s Trade Commissioner to the Gulf region, said.
“This will help to create a win-win situation for both the partners and will help increase our exports to the UAE and strengthen our bilateral trade in the coming months. I take this opportunity to thank and congratulate both the parties. MATRADE will continue to facilitate such cooperation.”
Revenue in the UAE’s vibrant household appliances segment is projected to reach US$332 million (Dh1.21 billion) in 2021, according to Statista. Revenue is expected to show a Compound Annual Growth Rate (CAGR) of 14.84 percent between 2021 and 2025, resulting in a projected market volume of US$577 million (Dh2.11 billion) by 2025.
In the household appliances segment, the number of users is expected to amount to 2.9 million users by 2025, resulting a user penetration level of 21.5 percent in 2021 and is expected to hit 28.2 percent by 2025. The average revenue per user (ARPU) is expected to amount to US$154.26. In the Household Appliances segment, 50 percent of total market revenue will be generated through online sales by 2023, the report said.
Al Futtaim is one of the largest diversified business conglomerates which has footprints in key markets in the Middle East. It represents some of the best global electronics and automotive brands and retail chains in the region. Khind is another feather in its cap.
Mr Sachin Wadhwa, Managing Director of Al-Futtaim Electronics, said, “Through its relentless pursuit of excellence and providing products and services of the highest quality standards, Al-Futtaim Group continues to deliver on its promise of enriching the lives and aspirations of its customers each and every day. Al-Futtaim Electronics in partnership with Khind Middle East, uphold these values in bringing quality products at a competitive price point.
“We are excited to partner with Khind Middle East in distributing its range of class-leading products in the UAE, providing our customers with a unique and excellent shopping experience. We are confident that the partnership between Al-Futtaim Electronics and Khind Middle East will be beneficial for both companies in achieving success in in the distribution strategy and peak performance on the market.”
Khind Holdings Berhad, which is celebrating 60th anniversary this year, reported a 31.88 percent jump in topline revenue reaching RM478,99 million in 2020, up from RM363.20 in 2019. Its net profits jumped 1432.25 percent to RM28.5 million in 2020, up from RM1.86 million in 2019. Its performance in 2020 – the height of the COVID-19 pandemic has been outstanding – second to none!
Khind has an exceptional reputation of quality assurance which in turn, is a reflection of the brand’s ideology and the relationship status with clients. Holding onto the mission, it delivers happiness every day. With a vision – Delivering Happiness – KHIND offers affordable, reliable and trendy products for residential and commercial units that deliver exceptional performance, energy and cost savings.
KHIND, which was established in 1961 in Malaysia as small shop, developed into one of the largest electrical and home appliances manufacturer in the Far East. Its products are exported to more than 50 countries worldwide. KHIND products are currently available at retail outlets as well as on the online channels such as Amazon.ae, Noon.com and their own website https://khind.ae/shop/
KHIND Middle East is focusing on offering turnkey solutions to large customers including industrial facilities, shopping malls, theatres and public places where the lighting and cooling solutions need to be installed and monitored to reduce the carbon foot print.
© Press Release 2021
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