Emax earns revenue of Dh200m in its first-half operations in GCC

Dubai: Emax, a division of Dubai-based Landmark Group, has recorded revenues of Dh200 million in its first-half operations in the GCC following robust growth in sales. Of this, Dh100 million came from the UAE, a top official said.

"When compared with the estimate of the market and the potential of the sales figure we had in our mind when we started the Big Box concept, we have done extremely well. Our financial year is from July to June," Neelesh Bhatnagar, managing director, Emax, said.

The retailer expects sales in GCC to touch Dh500 million, up 150 per cent in 2007-08, of which Dh250 million should come from the UAE.

In 2008-09, the group expects turnover of Dh800 million, of which Dh300 million will be from the UAE and Dh250 million from Saudi Arabia.

In 2009-10, it expects a turnover of Dh1.4 billion, of which Dh400 million should come from the UAE and Dh450 million from Saudi Arabia.

The group currently has eight Emax stores across the GCC - two in the UAE, two in Saudi Arabia, two in Bahrain, one in Qatar and one in Oman.

In December last year, it opened a three-level Emax Big Box store, the largest multi-branded consumer electronics store in the Middle East spreading across 135,000 square feet, retailing 17 product categories, over 300 brands and 100,000 products in King Faisal Street, Sharjah.

The group expects to open 40 outlets across Gulf region and India by 2010 with an investment outlay of Dh500 million, out of which six will be in the UAE by 2008.

It will be a combination of big box standalone stores and large format mall-based stores. The total area of Emax's retail space will reach two million square feet by 2010.

New ventures

"Our next Emax Big Box store will be at the Oasis Centre with 100,000 square feet space currently under construction and one in Bahrain by year-end," Bhatnagar said.

The group plans to open first Emax Big Box version in India by early 2008. The outlet will either be in Bangalore or Hyderabad.

He said India is a happening place and an untapped market. "There are a lot of new entrants into the market and we do not won't to miss out the opportunities."

"We are already in the country with Lifestyle stores and Max fashions. So I don't see any reason why we should not be opening Emax in India,'' he said.

"Our goal is become an absolute market leader in electronic retailing and biggest in the region. We are the only Pan-GCC player to have retail outlets in Gulf countries," he said.

Emax expects to enjoy about 15 per cent of the Pan-GCC electronics market by 2010. The Gulf industry is worth Dh22 billion, of which UAE will be worth about Dh5 billion-Dh6 billion.

"The big chunk of the market is in Saudi Arabia. Even for the group, major businesses come from Saudi Arabia. In the next eight to ten years, the electronics industry is going to boom in the UAE.