Danube Group, a leading building material and real estate company in the region, announced on Sunday a 30 per cent surge in turnover to Dh2.8 billion for 2014, and unveiled plans for its foray into men’s fashion in 2015.
For 2015, the company forecast a growth of 18 to 20 per cent as it planned to diversify into new businesses.
In a statement, Danube said its first real estate project, Danube: Dreamz comprising of 171 luxury townhouses located in the neighbourhood of Al Furjan community, received an exceptional investor response, generating a revenue of Dh500 million while its building materials division recorded a turnover of Dh2.3 billion in 2014.
With all its property units being sold within a day of going on sale, the UAE-based company launched its next project, Glitz Residence. The Dh300 million project is located at Studio City, Dubai.
“We are extremely happy to have recorded such a brilliant performance in 2014. We were a little skeptical at the start of the year, especially with the results received in first quarter. It was after March where the growth curve took a steep hike, even though the market did not give any noteworthy results,” said Rizwan Sajan, founder and chairman, Danube Group.
Around 40 per cent of the revenues of Danube building materials division has come from the UAE, while 30 per cent from Saudi Arabia, 20 per cent from Oman and 10 per cent from other markets. “Sales started picking up from second quarter, and thereafter we maintained an upward performance graph throughout the year. Our best months were June-July where the launch of our realty division gave a boost to our performance for the year.” Sajan added.
“With Dubai winning Expo 2020, the business environment received a great boost. The government has already announced several new projects towards making Expo 2020 a successful event. With added infrastructure comes the need of building material, and given our strong position in the market, Danube naturally is the preferred choice of the developers,” said Sajan. He said the strong performance has encouraged Danube Group to further diversify into new sectors and strengthen the existing business. Having established itself as a strong player in residential real estate market, Danube plans to come up with more major projects. After the recent rebranding of Danube Home, the company plans to unveil new showrooms in Sharjah, Qatar, Muscat and on Shaikh Zayed Road Dubai. Each showroom will be more than 50,000 square feet.
While focussing on consolidating its core building material business with new showrooms, Danube will continue its foray into the real estate sector with its third residential project very soon. This new project will primarily comprise of apartment buildings.
Danube said it would diversify in the retail sector by adding men’s fashion brand towards the end of 2015. The launch of the first showroom is expected by the second half of the year, with plans to have three fully functional showrooms by the end of 2015.
“Also the success of Cha Cha Chai, a dedicated tea and snacks joint, will witness an addition of six stores in 2015. These will be in addition to the seven existing outlets that are conveniently located in popular spots within Dubai,” the company said.