Ducab’s cable systems ... supplied to projects both in the region and beyond.
Ducab considers Indian venture
Dubai-based cable company has unveiled a series of expansion programmes in emerging markets that should treble its business by the end of the decade.
01 August 2005
As part of its commitment to treble business by 2010 and expand into newer markets, Dubai Cable Company (Ducab) is considering a production unit in India while strengthening its presence in the regional and local markets.
Currently celebrating its silver jubilee year, the UAE-based manufacturer of high-quality power cables is looking forward with a new vision that will see the company spread its wings across the region and beyond.
The Indian expansion is targeted at the country’s large infrastructure projects such as metro rail, airport upgradation and power generation, transmission and distribution.
“With the Indian market expected to grow at a high rate, we would like to set up a manufacturing base there itself,” says Jon Vail, general manager (technical).
Senior Ducab officials were in Kolkata (India) last month for negotiations with the private sector Calcutta Electric Supply Corporation (CESC). “Several new power generation units are expected to come up (in India) in the next few years. As each megawatt of power generation requires 5 to 6 km of cable, we are eyeing a major share of the pie,” he says.
Ducab has already supplied cables to the Delhi Metro Railway Corporation (DMRC).
Sales boost
Earlier this year, the company announced record sales of Dh687 million ($187 million) in 2004 – a 30 per cent increase compared to the previous year.
Ducab boasts a remarkable average annual sales growth of 15 per cent since 1981. The company’s annual production grew from 2,000 tonnes that year to 40,000 tonnes last year, while its manpower increased from 86 to 500 employees at present.
“We had a very successful year in 2004 and our impressive results are testimony to this. This performance couldn’t have come at a more appropriate moment for us as we commemorate the completion of 25 years of business,” says Colin Paskins, managing director.
“Demand in the short-to-medium term is very good as the region experiences a boom in construction and infrastructure development,” he continues. “A lot of projects are in the pipeline and we have to work hard to cater to the growing demand.”
Ducab’s product range covers low voltage power cables; medium voltage cables (up to 33 kV); control and auxiliary cables; wiring cables; as well as lead-sheathed cables for the oil, gas and petrochemical industry, and low smoke and fume (LSF) cables for projects where safety is paramount. Ducab also supplies cable accessories as a package.
The company launched production its new Dh125 million plant in Abu Dhabi with a capacity of 25,000 tonnes last March, taking total production capacity to 65,000 tonnes per year.
The new plant in Abu Dhabi concentrates on low voltage cables while the Jebel Ali unit, apart from manufacturing low voltage cables, focuses on medium and high voltage products and any new product developments.
While more than 75 per cent of the company’s current production is sold in the local market, the remaining is exported to other GCC countries, the Middle East and the Far East.
Though the Middle East and North Africa (Mena) region forms the major export market for Ducab, it is increasingly looking for new markets and has been successful in winning prestigious deals including in India, Iran, Jordan and Tanzania.
“Even while exploring new markets, looking after our home territory is our priority. We are taking a 25-year view. Our plan is to remain strong in the local market, but be less dependent on it,” says Paskins.
The company’s long-term plans include expansion into different markets, investment in upstream projects and new products while building Ducab as a global brand.
Iranian presence
Ducab has stabilised its presence in the Iranian markets with significant sales. The company has notched sales worth more than Dh20 million in the last two years in the Iranian market in various sectors.
Farid Mohammed Ahmed, general manager (sales and marketing), Ducab says: “One of the world’s largest producer of crude oil and the second largest exporter of petroleum, Iran is on a fast development track exploring its potential in the world petrochemical forum, thereby presenting numerous business opportunities for regional and international investors. The manufacturing, infrastructure and petroleum sectors of Iran are bound to prosper in the coming years.
Over the years, Ducab has been involved in several projects in Iran, including Bistoon/Mashal Daran project, Tabreez and Mashhad Urban Railway Companies, NIOC/IGC – Bandar Abbas Refinery, Khouzestan Water and Power Authority and the Abadan Refinery.
Ducab was able to meet the stringent requirements of the Iranian projects and also used specialised cables for major projects. For instance, LSF cables were used for the Tabreez and Mashhad Urban Railway, while lead sheathed cables were used for the Bandar Abbas Refinery, said Ahmed.
Technology edge
Paskins sees demand growing for fire performance cables and other specialised cables as high-rise buildings mushroom in the country. “The market is demanding better technology and we are ready to provide the latest in cables to meet customers’ needs,” he says.
Commitment towards quality has been another area of focus for Ducab.
“Ducab offers a quality brand and this is our main contribution to the industrial sector of the UAE. We are up to the world’s best,” he reiterates. “Quality is a journey which you never complete. Efforts to reach higher levels of quality are always ongoing,” he says.
The company’s cables have been type tested by the most sophisticated testing laboratories such as ERA technology; British Standards Institution; Lloyds Register; Warrington Fire Research Laboratories; British Approval Service of Cables (Basec) and Kema.
Ducab has been a proud recipient of several awards and recognitions. It claims to be the first manufacturer in the Gulf region with ISO9001:2000 certification for its quality management systems and is also the only cable manufacturer in the Middle East to obtain certification from Basec.
Ducab is also a two-time winner of the Dubai Quality Award in 1994 and 1998 (Gold Category).
The company was initially set up as a joint venture between the Government of Dubai and the BICC group of the UK. Today, the Government of Abu Dhabi and the Government of Dubai jointly own the company.
