Danube revenue hits Dh1b amid expansion

Dubai : Danube Building Material has reported annual revenues of Dh1 billion in 2009.

The company has announced its goal to achieve 50 per cent growth in 2010 and says that it aims to secure 10-15 per cent out of its 50 per cent annual growth target within the first quarter of 2010.

"If you look at this industry's growth it is all negative. I know my competitors have lost more than 40-50 per cent. We were lucky enough to be able to manage the same growth in 2008 as in 2009," said Rizwan Sajan, chairman of Danube Building Materials.

The growth in revenue has been largely due to their expansion efforts in 2008 and 2009 which saw the introduction of Danube Buildmart, a retail complex.

Around 25 per cent of the revenue earned in 2009 was generated by this new retail outlet.

There are currently seven outlets in the GCC including one recently opened in Fujairah as well as Ras Al Khaimah, Dubai, Abu Dhabi.

"The main challenge for the upcoming year will be liquidity. We have to divert our company into generating revenues through more cash businesses. We are selling more home interior products with Buildmart than building materials products. More people have started owning their houses, and they want to decorate them," said Sajan.

Expansion plans for 2010 involve the opening of 12 more showrooms across the region.