Danube Group has come a long way over the past 20 years from a small trading shop to one of the region’s leading building materials companies.

It started off in Dubai with three employees. Today it operates in over 40 locations in nine countries, including the UAE, Oman, Bahrain, Saudi Arabia, Qatar and India and boasts procurement offices in China and Canada and total staff strength of over 2,000.

“Keeping pace with our Dubai-based business house, we recently extended our presence in the African region with the opening of new showrooms in Kenya and Libya,” says Rizwan Sajan, founder and chairman of Danube Group as he chronicles his company’s remarkable progress. “We also have expansion plans in other areas of Africa such as Ethiopia and Tunisia and these could materialise soon.”

He also has his eyes on Azerbaijan which he believes is another promising market for upcoming construction projects, one that will enhance the competitiveness of Dubai businesses abroad.

Recently Danube established an industrial complex in Technopark, Dubai, which will help reduce the UAE construction industry’s dependence on imported finished products.

Sajan: brisk expansion

Strategically located to cater to the GCC markets, the complex, built at a cost of Dh50 million ($13.6 million), is spread across 450,000 sq m and is integrated with the Warehouse Management System (WMS). It features several value addition units measuring 150,000 sq m – units for melamine pressing, steel cut and bend, décor (veneer pressing), general development, manufacture of ceiling tiles and distribution. A large warehouse of 300,000 sq m tops the complex.

The Warehouse Management System deploys wireless hand-held scanners and the latest technology to support intelligent operations including real time update of data and inventory management.

Sajan said the complex came up following steady growth in the construction sector as a consequence of development activities in the UAE.

He added that Danube’s new investment demonstrated commitment to delivering a broad range of innovative logistics solutions throughout the country. “And since the complex is strategically located to cater to the GCC markets, it helps in creating direct jobs and supporting hundreds through indirect employment.”

Sajan is happy that traders and end-users will benefit from the complex’s custom-made products, slashing the time and cost of imports. Danube will spruce up its logistics operations to meet the anticipated increase in demand, he says.

JEBEL ALI BASE
Danube Group functions from its head office in the Jebel Ali Free Zone and operates through three segments, namely Building Materials, Buildmart (interior solutions) and Online Services or Danube Direct.

It offers more than 25,000 products in stock coupled with value-added services across all its showrooms in the Mena region and India. As the construction sector picks up demand also rises for Danube’s building materials such as MDF, plywood, boards, exotic timber, veneer, laminates, aluminium cladding, steel, hardware, ceramic tiles, wall panel, chandeliers, sanitaryware, kitchenware and glass as well as solutions related to the acrylic, electrical, flooring, ceiling, paints and fire fields.

Buildmart at the Al Ain Mall

The Danube interiors brand Buildmart offers chandeliers, luxury sanitaryware, wallpaper, curtains, venetian blinds, carpets, parquet flooring, decorative paints and ceramic tiles all of which are witnessing an increase in demand. Products from the sanitaryware and tiling sections are among the best-selling offerings, according to Sajan.

The entrepreneur highlighted that Danube embraces responsibility for its actions and strives to have a positive impact on the environment and communities. “Danube is the first building material company to be FSC certified in the GCC region and it provides customers with greener products through responsible forest management,” he claims.

“These certifications confirm that our line of products such as wood, MDF, plywood, boards and door core, have been manufactured using raw materials harvested from certified sources, controlled wood sources or post-consumer reclaimed sources. Danube is the only company to have the highest range of products under the FSC certification in the GCC.”

Danube also offers products such as sanitaryware, gypsum and cement fibre boards that can be used for Leed-certified projects. 

The company has been showered with accolades and awards including the Mohammed Bin Rashid Al Maktoum Business Excellence Award, Dubai Quality Award, Dubai Customs Award, Dubai Logistics and Supply Chain Award and the Top 20 Performers, UAE, prize. Danube was the first building materials company in the UAE to be awarded the Mohammed bin Rashid Al Maktoum (MRM) Business Awards for two consecutive years.

Sajan characterises 2012 as “a year of achievements and rewards.” It saw exponential growth in sales and expanded its presence in the region with new showrooms in the UAE, Saudi Arabia, Qatar, Oman, Kenya and Libya.

“Compared to 2011 we have definitely moved up the ladder and are confident we’re on track to meet our $1billion revenue target by 2015. Aiming to maintain sustained development, we will post a 15 per cent increase in our business growth in the coming quarter and open 75 more retail showrooms across the Mena region by 2015.”

Some of the projects Danube has been involved with in the UAE are the Burj Khalifa, Yas Island Development, Meydan Race Course, Emmar Projects, Dubai International Airport Terminals 3 and 4, Palm Jumeirah and Dubai Metro.