Eros sees over Dh3bn sales

CEO Babani expects 35% sales growth backed by strong TV and mobile phone sales

Eros Group, a leading distributor of many global electronic brands, is expecting strong sales growth this year on the back of major sports events taking place and increased mobile phone sales.

Deepak J. Babani, CEO of Eros Group, projected in an interview with Emirates 24l7 that group sales will jump by 30-35 per cent this year with turnover crossing Dh3 billion.

“2012 stated off well with DSF and then we have had some big international events like IPL, followed by DSS and then we have Euro Cup. When Euro Cup finishes then Olympics games will start. So this brings in a lot of interest and a large number of people buy televisions. This is one trend which is very positive this year. When we look at global scenario, I think Dubai is performing better,” Babani said.

“Taking into account the global scenario at the beginning of this year, we set target of 20 per cent growth over the previous year; but I think we should look at 10 per cent more than that. In June, we revised our target and now we are looking at Dh3 billion turnover - thanks to Samsung, and TCL. I think for the whole portfolio should grow more than 30 per cent,” he said, adding that “Eros sales totalled Dh2.7 billion last year.”

Eros Group has distribution rights of Samsung, Hitachi, TCL, Linksys, Candy, Flip, BenQ, Sonos, Thermobreak, Lennox and Aiphone.

He said some of the loss of Iran is being offset by Arab Springs as the group is witnessing increased sales due to higher inflow of tourists. “We also expect Egypt to do well after elections. Iraq continues to be heading stronger and stronger. This year started off well from Eros perspective but second half is going to be even much better because we were aggressive in the first half in the smart phone and the results of smart phone sales will now come in H2.

“Now was the launch of Samsung SIII. We also have successor models; we have 3-4 more models at budget prices staring from Dh399 coming during the DSS. With the launch of these models we will clearly far the leader in the phone market. This is going to give a big boost to our business.”

New warehouse and outlets

The group currently operates 30 stores and two warehouses in the UAE and aims to expand on both fronts, Babani added.

“Currently we’ve 30 outlets. This year we will add at least four more – three in Dubai and one in Abu Dhabi. In fact something new we are developing in mobile phone market by having concept stores for smart phones. We are trying to give customers touch and feel. We’re looking at building up 2-3 such stores just for mobiles. The focus is not just to sell mobiles but also give customers feel and touch the mobile,” Babani told this website.

The group will also hire approximately more than 150 people for these new outlets and warehouse.

“About 40-45 people will be added for the outlets. We are also expanding our distribution side. We operate two warehouses – one each in Al Quoz and Jebel Ali Free Zone; now plan is to build a new warehouse spanned over 100,000 sqft which will be ready by November-December. We had 1,200 employees at the end of last year and this year we’re hoping to have 1,350-1,400 by the end of this year,” he added.

The group is also negotiating bringing 3-4 new electronics brands into its fold.

“We operate in region through distributors. Now we are seriously considering either collaborating with existing distributors and start joint ventures or go on our own. Qatar and Saudi are on our immediate radar.”

Print
  • Twitter
  • submit to reddit
comments powered by Disqus

Business

Videos

Most Popular in Business

Latest jobs available

More jobs on Emirates 24|7

Follow
Emirates 24|7

Follow
Emirates 24|7
Pinterest Facebook Facebook Twitter RSS

In Case You Missed It ...