GCC to have two more Buildmart stores

Danube will open two more Buildmart stores in the GCC and two new ones in India on the heels of its first store opening in Mumbai on June 25, according to its Chairman.

Rizwan Sajan, Chairman, Danube Building Materials, said: "We have already signed up with Lulu Group since they are opening their biggest mall in Cochin. We have also signed up with Phoenix in Mumbai. The total value of both ventures will total to Dh30 million.

"We have got a great response in India, where we inaugurated our first Buildmart yesterday. The first day sales stood at Rs3.75 lakh (Dh29,753) on the first day, which was not even the case in the UAE."

"As for the other two stores, it all depends on when they will handover the place since they both are new malls. We are hopeful of starting by end 2010 or the beginning of next year. We also hope to start a new store in Delma Mall in Abu Dhabi and another one in Muscat in the next two to three months. We have planned a total budget of Dh150m for the Buildmart expansion plans over the next two years."

There are currently nine branches in operation, as a result of the company's Dh200m expansion plan to grow its flagship retail brand to a total of 16 branches by the end of 2010.

The store in India will include its high-end sanitary ware, chandeliers, wallpapers, parquet flooring, curtains, carpets, ceramic floor, wall tiles, home décor and a host of lifestyle products; in addition, to a free in-house home interior designing consultancy service.

The opening of the new branch complements recent reports that India's economy is expected to grow at 7.5 per cent from 2010 to 2011 and will be higher at eight per cent in the following year, according to the company statement.

Sajan added, "After the launch, we will be undertaking steps to entrench our presence further into other GCC construction hotspots, including Abu Dhabi in the UAE, Saudi Arabia, Bahrain and Oman."

In addition to the new facility in India, other global Danube retail facilities are in the UAE, where 15 branches are located, Oman (two), one each in Bahrain and Saudi Arabia, in addition to procurement offices in China and Canada. The company has also invested Dh50m in a new 1.3 million sqft manufacturing facility in TechnoPark, which will be functional by early 2011.

"We are planning to open more showrooms and retail complex outlets in the next few months. We are satisfied with the performance and returns of all our branches, which has become an important factor in our continued growth in the UAE and the rest of the region," said Sajan. He added that the company is still hopeful of looking at an IPO in the next four to five years.

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