Caparo ME launches electrical products plant in Saudi Arabia
SR25 million plant in Dammam will manufacture electrical conduits and fittings
Caparo Middle East, a leading manufacturer and distributor of industrial and electrical products, inaugurated its first investment in Saudi Arabia, in a fully integrated state-of-the-art manufacturing plant in Dammam, Al Khobar region of Saudi Arabia.
The manufacturing plant, Caparo Tabalsa Arabia Factory Co. LLC, is a joint venture between Caparo ME and Eng Sinan Ali Ahmed Bukamseen, a reputed Saudi Arabian investor, developed with an investment of SR25 million. The joint venture is also expected to create about a hundred jobs, of which forty have been filled already.
Caparo ME’s specialisations include electrical metallic conduits and fittings complying with American UL standards. Located in the 2nd Industrial City, Dammam, KSA, the 30,000-square-foot factory is built on a 50,000-square-foot plot of land to cater to the growing needs for these products in the Middle East and Africa regions. At full capacity, the factory will produce about half a million electrical conduits and related fittings per month.
The market size for electrical conduit products was valued at $10 billion in 2023 and will reach over US$19.9 billion by 2032, propelled by increasing concerns related to electrical supply faults, fire hazards, health risks, and operational safety, according to Global Market Insights (GMI).
Currently Caparo ME distributes these products by importing them from factories in managed facilities from China and India. The new manufacturing facility in Dammam will help reduce imports and assist Saudi Arabia in achieving self-sufficiency and become an exporter of industrial and electrical metallic conduits and fittings. This expansion will contribute to the Saudi economy and increase prospects for further investments by Caparo ME in the future. The new plant will help Caparo ME revenues grow through manufacturing in KSA rather than importing products, not only increasing market share in KSA, but also in the GCC, the wider Middle East and Africa.
Caparo ME is part of a global business house Caparo Group founded by Swraj Paul. “This new industrial venture reflects Caparo’s long-term commitment to the Saudi Arabian economy, as it evolves and diversifies to become a major global economic powerhouse. We are very happy and proud to be able to inaugurate this investment at this time,” he said.
“This manufacturing plant will play a vital role not only in eliminating imports of industrial and electrical metallic conduits and fittings complying with American UL standards but also help Saudi Arabia to export these products abroad. In this way, we are also aligning ourselves with the economic diversification plan under the Saudi Vision 2030.
“In line with the Saudi Vision 2030, we are also supporting the Saudisation drive by creating employment, paying taxes and levies, generating exports and reducing dependency on imports.”
Headquartered in London, UK, the Caparo group of associated businesses operates across the world, predominantly in manufacturing, distribution and sales at over forty locations. Caparo ME has been operating independently from Dubai and serving the GCC market since 2005.
Anjli Paul, Director of Caparo ME, added: “Following the inauguration of the joint venture manufacturing plant, we will become a dominant force to be reckoned with in the region. Aligning with the vision of the Saudi Arabian Government, we will promote local manufacturing and local human talent, and look forward to increasing Caparo’s business presence in KSA.”