(MENAFN - Khaleej Times) Al Bayader International, one of the leading food packaging specialists in the Middle East, plans massive expansion including 300 per cent jump in revenues, new manufacturing plant and a possible initial public offering, or IPO by 2017, according to vice chairman Firas Haddad.
Headquartered in Sharjah, the company has manufacturing facilities in Jebel Ali, Qatar and Sharjah.
In the Hypermarkets segment, Al Bayader has emerged as the clear market leader, with an impressive 90 per cent market share in UAE, Qatar and Oman, and a 50 per cent market share in Saudi Arabia, Kuwait and Bahrain. It also maintains a healthy portion of the market in the remaining Arab countries with a 15-20 per cent market share.
"Over the next five years Al Bayader " is looking to treble the turnover for its FUN range of single-use tableware and kitchenware products for consumers," Haddad told reporters at a news conference on Wednesday."Over the last five years, we have doubled our turnover with an annual average growth of 20 per cent," he said, but declined to give the current revenues figures.
Regarding IPO, he said: "It's not a final decision." There are 60 per cent chances for the IPO in 2017 and for that the company will start working in 2016, he told Khaleej Times later-on. If it happens, it will be either in Dubai or Abu Dhabi, he added.
The company produces more than 465 products and around 150 products added in the last two years, he said, adding: "We serve more than 350 retailers in over 615 stores spread across the GCC."
Talking about the industry size and growth, he said: "The UAE's mass grocery retail sector, or MGR, which includes grocery stores, supermarkets and hypermarkets, is one of the Gulf region's largest by value, with sales forecast at Dh19.45 billion in 2011 and accounting for 69.2 per cent of the total food and drink market."
"The value of the UAE's MGR sector is forecast to rise to Dh27.55 billion by 2015, when it should account for 73.8 per cent of the overall food and drink market. FUN hopes to capture a substantial amount of this market by 2017," he added.
"This is the region's biggest brand with the most comprehensive range of colourful, creative and consumer-friendly single-use tableware and kitchenware products," Haddad said.
Al Bayader International has pursued an industrial strategy that embraces in-house design, research and development and manufacturing with the aim of achieving 85-90 per cent self-sufficiency for the FUN brand.
Acknowledging that control over the entire supply chain helps meet the market's need for flexibility and efficiencies in inventory, Al Bayader's logistics strategy includes the opening of warehousing and logistics capabilities in 12 key locations of the UAE and across the region.