Ducab, the UAE-based manufacturer of cable and wire solutions, is hopeful of achieving a sustainable business growth despite being faced with tougher market conditions on account of low margins and decrease in projects.

The company, which generated approximately $1.5 billion revenue in 2015, says it is on track to grow year-on-year and even overtake its sales performance this year. 

“The market today is witnessing margins under pressure owing to increased competition and a decrease in the number of projects in the region. However, Ducab has a strategy in place to tackle these market volatilities and deliver sustainable business growth,” says Ashish Chaturvedy, marketing manager, Ducab. 

To achieve its targeted growth, Ducab says it will continue to focus on innovation in product range and wider geographical expansion, a strategy which has been its primary growth driver.

“Our strategy for 2016 is to continue to have a quality-assured product range that will keep us relevant to a number of growth sectors. We are looking at utilities, real estate and construction, oil and gas, transportation, and hospitality as some of the key sectors to track and supply to,” Chaturvedy says.

UNIQUE PRODUCT RANGE

Indeed, innovation in product expansion has contributed significantly to Ducab’s increased market penetration. 

In the year 2015, Ducab says it signed contracts and commenced delivery to a number of local, regional and international projects across multiple sectors and generated approximately $1.5 billion revenue. 

Its export market penetration grew by about 10 per cent in 2015 over 2014. 

Further this year, the company secured significant orders worth $70 million in oil, gas and petrochemical (OGP) sector in Abu Dhabi (UAE) and $100 million in Kuwait, to name a few. 

Through its innovative journey, Ducab has continued its strong rate of growth in specialised products by introducing product lines that are designed for particular sectors, such as Ducab PetroBICC, designed for the OGP sector; Ducab RuBICC, with flexible rubber cables; Ducab FlamBICC, the Fire Performance cable series; and Ducab NuBICC, a cable range specially developed for nuclear power plants.

Chaturvedy: specialisation is key to growth

“Technologically advanced cabling solutions are one of our biggest strengths and we take keen interest in understanding our customer needs before offering our world-class products and services, both for local and export markets alike,” quips Chaturvedy.

BANKING ON BEST-SELLERS 

While Ducab continues to see growth across its products, its medium voltage (MV) cables account for one third of the company’s total production. Range-wise, its Ducab NuBICC range, devised for nuclear power and Ducab FlamBICC designed for fire performance, have done exceptionally well. 

The Ducab NuBICC range satisfies the most rigorous safety class requirements in nuclear power plants, while the Ducab FlamBICC range of cables is a sophisticated product which can be used across various areas of application such as in schools, shopping malls, mass transit systems and also in services where circuit integrity is very important under fire conditions such as special equipment in hospitals, Chaturvedy explains.

Ducab also has in its portfolio Ducab MarineBICC, a range of cables customised for the marine and offshore industry. “These high-quality and long-life cables are suitable for extreme temperatures and moisture, and are braided for extra protection, without affecting the flexibility of the cable,” says Chaturvedy. 

Expanding further, Ducab, at its upcoming aluminium plant - Ducab Aluminium Company (DAC) located in the Khalifa Industrial Zone of Abu Dhabi (Kizad), will manufacture electrical conductive (EC) grade aluminium alloy rods, wires, and bare overhead conductors.

A joint venture with Senaat, Abu Dhabi, DAC is a 50,000 tpa aluminium rod mill. It is currently under construction and is on track to open soon, says Chaturvedy. 

“This is a project we are looking forward to as the new plant will manufacture EC grade aluminium alloy rods, wires, and bare overhead conductors when complete. Environment-friendly processes will be employed within the mill, and liquid aluminium will be supplied from the EMAL smelter in Taweelah, Abu Dhabi,” he elaborates.

The plant will target the GCC and the Middle East and North Africa (Mena) regions for overhead conductors and wires. 

In total, Ducab has five manufacturing facilities in the UAE, and one in the UK, with a manufacturing capability of over 115,000 metal tonnes of high, medium and low voltage cables and 110,000 tonnes of copper rod and wire per annum. Ducab facilities also include England-based AEI Cables UK.

PRIME PROJECTS

The projects completed in 2015 and the first half of 2016 by Ducab include the Abu Dhabi Midfield Terminal Project,  multiple refineries in Kuwait, Dubai Canal Project, Doha Metro, Dubai Mall expansion, and the Mall of the Emirates expansion.

With the Midfield Terminal Project, Ducab has been involved right from the early stages where its local presence ensured a quick turnaround time on the order, availability of world-class manufacturing facilities, on-ground expertise, and round-the-clock technical and after sales support, which are all highly critical components of the project.

Presently, Ducab’s ongoing projects include the iconic Bluewaters Island project in Dubai, the upcoming Dubai Parks and Resorts spread across 25 million sq ft of land, multiple projects with Adnoc, Delhi Metro, Riyadh Metro and the Al Ain Hospital amongst many others. 

Ducab is also supplying the world’s first entirely 3D-printed office in the UAE, the ‘Office of the Future’, with approximately 10km of cables and wires. Additionally, its Ducab NuBICC range of cables was recently selected by the Korean Hydro & -Nuclear Power Co (KHNP) for the Shin Hanul 1 and 2 Nuclear power plant under construction currently. This project is the first international nuclear project for Ducab and a significant win post stringent testing and qualifications. 

EXPORTS PUSH IN AFRICA

Ducab is presently seeking expansion in new markets and considers Africa an exciting opportunity. Apart from Africa, Ducab products are also exported to the GCC and the wider Middle East, other non-GCC countries; Asian states; Europe and Australia, explains Chaturvedy.

Its most popular export range is power transmission cables which are used in large projects such as hotels and resorts and public transportation. The company sees significant demand for special cables for the oil and gas industry and for MV and HV cables for infrastructure projects in the GCC. “India is one of the biggest export markets for our copper rods while Ducab FlamBICC, our fire performance cables, have witnessed substantial growth to several markets outside of the UAE including Hong Kong and UK,” Chaturvedy adds.

Within the GCC, Ducab has supplied power cables to projects such as Ras Gas Project, Dasman Hypermarket in Qatar, Central Bank of Oman and Dilmunia Health Centre. Further abroad, a few of its milestones include working on the Public Utility Board in Singapore, ICC Tower and the HSBC Corporate Office in Hong Kong and Delhi Metro in India.