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Jumbo plans Dubai listing with eye on retail investor
Jumbo Group, the $2 billion electronics retailer, is planning to expand business organically as well as through acquisitions, in addition to a planned listing in Dubai.
- Gulf News Report
- Published: 00:29 March 14, 2008
Dubai: Jumbo Group, the $2 billion electronics retailer, is planning to expand business organically as well as through acquisitions, in addition to a planned listing in Dubai.
"Given Jumbo's current financial position, we would, in fact, be interested in acquiring some businesses with synergies," Vidya Chhabria, chairperson of Jumbo Group, said, responding to takeover rumours.
"We would want the people of Dubai to share in our success, and at the appropriate time we would definitely like to list Jumbo in Dubai. The listing when it happens will be skewed towards the small, retail investor to give them a chance to share in the growth of Jumbo.
"With Jumbo's projected growth rates exceeding 25 per cent year on year for at least the next ten years, it would definitely provide a good investment opportunity to the small investor."
The group's flagship company, Jumbo Electronics, was established in 1974 by Manohar Rajaram Chhabria, a non-resident Indian, who made a fortune selling Sony televisions. The company benefitted from the massive growth of the electronics retail business in Dubai.
Chhabria yesterday outlined her companies growth plans that is expected to raise its current annual turnover fivefold from Dh1 billion. "Jumbo's turnover will touch Dh5 billion soon. It has substantially increased the gap between itself and its competitors."
"The growth is solid and sustainable as it is organic, and not through acquisitions. The Jumbo Group has over the last few years reinvested millions of dirhams into the business to fund its rapid expansion. Jumbo has an exceptionally strong balance sheet completely free of any term debt. The group has several divisions with turnovers of over Dh1 billion."
Chhabria, however, ruled out inducting new partners. "We have no intention of bringing on new partners into the business nor any intention of diluting the stake in the business."
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