Dr Khayyat, right, and Rasoul: masterminding a strategy of growth

Advanced Industries Group (AIG) has registered 100 per cent growth since it entered into partnership with Emaar Industries and Investments (EII), according to a company official.

As a subsidiary of EII, the group has gained exposure, recognition and the capability to realise its dreams and expansions, says Faysal Rasoul, chief executive officer of UAE-based AIG. The group comprises three base companies with each one a leading player within the region’s manufacturing industry.
 “EII’s association with AIG started more than two years ago and it was one of our first few partnerships,” says Dr Ahmad Khayyat, chief executive officer, EII.
 “Faysal had started these three companies and developed the business to a level at which it was ready for a company like ours to partner and help achieve the vision he had put in place,” Dr Khayyat recalls.
 “We grouped the three companies under AIG, a strategic decision aimed at ensuring the manufacturing of products to a standard unsurpassed by any other company and becoming a model for other companies within the industry,” he says, adding “over the past two years the companies have done very well in terms of their growth, market penetration, expansion of product range and development of new technologies.”
 Comments Rasoul: “As a joint initiative of EII, Zabeel Investments and Prime Investments, AIG signals a new dawn in manufacturing, where the focus is on pioneering products and systems and creating niche markets. There has been a natural synergy between the managements that has helped us develop and grow in a transparent way.”
 AIG’s base companies have unique manufacturing capabilities where each of the three distinctively adds value to the manufacturing process involved at AIG. They are involved in different specialties including projects in real estate development, commercial fields, hospitality, educational institutions and infrastructure as well as general services providing clients with an array of products and services.
 “Our vision is to continue attracting advanced industrial technologies that will become a cornerstone for the regional economy and our mission is to further build on our successful and established growth model through innovation in production and human processes. Our ability to offer comprehensive manufacturing excellence in niche segments is the result of the strategic merger between three eminent specialists,” says Rasoul.

The base companies 
AIG’s three base companies are Haseeb Rasoul FZC (HRC), a globally renowned master in furniture and interior fit-outs; Advanced Composites (AC), an award-winning company providing essential services in FRP infrastructural piping systems, and Specialised Metal Systems (SMS), which specialises in furnishing schools, colleges and universities. This unique fusion of expertise and facilities enables AIG to cater to the essential requirements of almost any development.
The group’s purpose-built industrial complex is located within Hamriyah Free Zone and spread over 500,000 sq ft.
 HRC draws on its wealth of local and international experience spanning over 40 years to satisfy a loyal clientele. The company’s outstanding work is reflected in every project undertaken, including several prestigious 5-star hospitality developments. Combining the use of the latest technology with high-end machinery and advanced production processes has earned HRC its identity as a specialised manufacturer, well adapted to the concept of mechanising skill.
 The company is currently in an expansive mode. It is in the process of setting up a manufacturing facility in Jordan to cater to the growing demand for hospitality projects coming up in the kingdom and the surrounding areas. HRC has a share holding and will be managing the new factory which is expected to start operations later this year.
 The company has also been invited to do a project in Pakistan. Besides geographical expansion, the company recently expanded its facility and workforce.
 Some of its prestigious projects are Between the Bridges in Abu Dhabi, Burj Lake Hotel, Dubai Marina Mall, Dubai International Airport Expansion, Rose Tower, Al Murooj Complex, Arabian Ranches, Shangri-La Hotel, Fairmont Hotel and Madinat Jumeirah, all of which are in Dubai.   
 Elsewhere it has executed the Four Seasons San Stefano in Egypt, Museum of Islamic Arts in Qatar, Balzac Hotel in France, Four Seasons – West Bay, Qatar; Hyatt Regency in Morocco and Cegali Hotel, Qatar.
 Advanced Composites was established in 2000 and is today a prominent producer of FRP infrastructural piping systems with an illustrious clientele. AC has proved its competence in pioneering solutions by providing the first complete FRP piping systems for district cooling and by developing a unique FRP system for well casing. The company’s award-winning services have received accolades in the local and global markets and it enjoys the highest accreditation from the American Petroleum Institute.
 “What distinguishes us from the rest is we have developed new products that are unique to the market. FRP system for well casing, for example, has helped us bag the prestigious, unique and highly challenging project namely the Great Man-made River project in Libya,” says Rasoul. The company is supplying for 120 wells.
“We have also started with district cooling and ours is the first company to provide the complete FRP solution in district cooling including production, design, engineering, installation and commissioning of the system,” says Rasoul.  This has helped AC win several prestigious jobs for Palm District Cooling, a subsidiary of Nakheel. Some of the projects include Jumeirah Village South Phase I - Triangle Area; Jumeirah Village South Phase I – Circle Area; Burj Dubai Development, Dubai Festival City and Jumeirah Lakes.
AC has the latest CNC machinery and enjoys the highest accreditation and certification from the American Petroleum Institute (API). It is currently developing new products for the oil and gas sectors.
“In a nutshell Advanced Composite is a solution provider for infrastructural projects ranging from oil and gas to district cooling, well casing and drainage and from sewerage to processing plants,” he says.  
“We have experienced huge expansion in terms of machinery and personnel from the time EII has been with us. Our production capacity has expanded four times and we have also doubled the workforce,” says Rasoul.
AIG’s third group company, SMS is a reputed producer of education industry furniture, backed by a decade of experience. It has more than 1,000 schools, colleges and universities in its portfolio, and it recently supplied school furniture to 50 federal government schools
SMS has further broadened its horizons by expanding into the manufacturing of office, hospital and laboratory furniture and fittings. A fully-fledged architectural metal works division, equipped with the latest CNC machinery, enables SMS to provide a high output, while catering to clients’ specific requirements.
“We provide service to hospitality and large commercial projects. We have recently launched a new product line – metal doors and fire rated metal doors,” says Rasoul adding that AIG is unique as no other group offers such diverse range of products under one roof.
Rasoul goes on to say that Research and Development are the key to successfully identifying new products and locating and targeting new market niches to maintain a competitive edge.
“Looking ahead, we see many opportunities for a phased and synchronised growth achieved by adopting horizontal and vertical patterns. To this end, we have funds in reserve to increase our capacity and further invest in research and development,” he says.
“We are also keen on expanding our portfolio and growing our list of clients by identifying new projects, catering to emerging market trends and providing products with unparalleled quality. At AIG, we are continuously acquiring and developing new technologies and processes that will help us further increase efficiency.
“Our most valuable asset is our team of professionals. Therefore, we invest time and effort in our employees, focus on providing them with required training and help them share in our growth and our future.”
For 2008, AIG plans to expand its business into new geographical locations. Besides Jordan, which is already in place, it is looking at opening a facility in Abu Dhabi for AC, and entering the Pakistan market with both HRC and AC products.
“A combination of a healthy market along with unique and specialised products and being a part of EII has given us the capability to realise dreams. With EII and Zabeel as partners, the sky is the limit,” he concludes.

EII’s role
“EII’s role in all its partnerships has been to provide its expertise to help re-engineer the financial position of the company, to open roads, create a network to expand business and, most important, to help associate ourselves with the management  and help them in creating their strategies forward,” says Dr Khayyat.   
Any business that EII gets, it looks at the growth potential for the company, the markets that they are serving and the stamina in its existing management to realise the company’s potential and vision.
“We are now in our third year of operation and with the input and support of our partners we have managed to expand our business. One of the key performance indicators has been the revenue generated by the group, which has increased from Dh600 million in 2006 to Dh1.4 billion last year, which is excellent news for shareholders as the value of those invested interests has increased substantially,” says Dr Khayyat. This year EII hopes to double this figure. It currently has 12 subsidiaries and seven opportunities in hand and hopes to seal some this year.
“Acquiring 12 companies over the last two years was very demanding and 2008 is a challenging year for us as we aim to strengthen our focus on maximising the growth of our portfolio and meet our plans to diversify into new high-growth sectors. Our approach in the coming months would be to further boost our subsidiaries’ profits while making key investments that ensure that portfolio risks are well managed,” says Dr Khayyat.
EII is also looking at broadening its horizons by seeking opportunities in new markets.
“Powered by the highly competent and skilled workforce, we will move forward with full confidence and meet the challenges we face through innovation and diligence,” Dr Khayyat concludes.

Other subsidiaries
Among other EII subsidiaries are:
• Multiforms – a leading manufacturer and supplier of custom aluminium curtain walling, cladding and a range of advanced architectural materials.
• Mammut Building Systems – one of the region’s largest manufacturers of pre-engineered steel buildings (PEBs) and polyurethane injected sandwich panels.
• Caparol – specialist in the production of façade and insulation technology, cladding and rear-ventilated façade, exterior paints, interior paints, enamels and glazes.
• Starwood – a primary manufacturer of quality internal and external doors, wooden and aluminium kitchen cabinets and wardrobes
• Emirates Jewellery Manufacturing Company – a joint-venture company between EII and Damas producing a full range of fashion jewellery, from individual diamond and gold collections to more generic pieces
• Emiratex – a UAE-based industrial-scale laundry and dry-cleaning service provider that principally serves the booming hospitality sector of the UAE
• Dynergy Technologies - a UAE-based company specialised in the assembly and supply of medium voltage (MV) and low voltage (LV) electrical switchboards and operating with a specific focus on energy solutions for local communities, hotels and tower projects.
• United Arab Chemicals Carriers (UACC) – a shipping company intending to operate 27 tankers in the clean petroleum products and commodity chemical markets.
• Depa, a holding company for a group of complementary subsidiaries whose services include finishes for floors, walls and ceilings, refurbishment and upholstery of furniture and case goods and design coordination.