Raphael Khlat
Raphael Khlat explains that the Faisal Jassim Trading Company (FJTCO), of which he is MD, is inevitably playing a major role in the Brave New Dubai slowly being forged in the wake of the global financial meltdown and its impact on the local construction industry.
Pointing to the expanse of dusty construction bustle visible from his second-floor office window, Khlat says this is because practically every major project in Dubai has contained at least one product represented by his company.
This is no idle boast. From its humble beginnings in 1988 as a partnership between several electro-mechanical engineers, FJTCO today represents a slew of world-class, top-quality brands. “I come from an electro-mechanical background, and joined the company as a partner in 1993.
"My immediate aim was to nudge the business into the trading environment, as contracting was relatively cutthroat at that stage, with a minimal profit margin. In those days we focused mainly on electrical controls, specifically on the interface panels between building management systems and electrical switchgear,” explains Khlat.
“In terms of servicing the MEP market, our strength has been built on our air-con and plumbing ranges, in addition to electrical switchgear and associated controls. We also focus on boilers, solar systems, cooling towers and heat extractors, for example.”
Khlat reveals that the company has a specific strategy of bringing new products onto the local market. A particular case in point was its introduction of pre-insulated HVAC ducting in 2002 to 2003.
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Local input
“This was initially more expensive than the traditional galvanised iron product, but through local input we targeted pricing aggressively, and today have 50% to 60% local market share. This product was revolutionary for its time. We knew we had to get to grips with the benefits and the know-how in order to get it accepted widely by contractors. We took the time to train our technicians properly and educate the market as to the associated benefits. Today we are reaping the rewards of this strong approach,” says Khlat.
How does FJTCO go about identifying leading-edge brands, and what particular products are suitable for the local market?
“We attend a lot of exhibitions where the latest technology is showcased, which gives us a heads-up in terms of what is happening on the global market. However, what is important is interpreting these latest developments in terms of the specific local requirements, and what is happening in Dubai at this precise moment in time. The products we focus on must be well-known brands with global exposure, and be backed up by extensive knowledge and expertise. Hence we tend to concentrate on the premium players who have invested a considerable amount in extending their depth and range in terms of ongoing research and development,” says Khlat.
He adds that FJTCO prefers to engage proactively with the original equipment manufacturers it represents.
“This is an exciting, dynamic business and trading environment. We do not focus on off-the-shelf, commodity-type products, but emphasise ongoing development and flexibility. It is only possible to cultivate such a relationship with manufacturers who are able to understand the dynamics of the market. This helps to position us at the forefront, and places us in the best position to be able to respond to its specific needs, as well as to set new trends and benchmarks.”
Global leaders
What this means, in a nutshell, is that FJTCO is “proud to be associated with people who understand the industry, and not only tell you about the price. By associating with global leaders, we grow the entire industry.”
Jassim explains that the company deals directly with contractors, as opposed to having a network of distribution outlets.
“We have a good relationship with both designers and contractors. Specifiers will base their designs on your products if they understand how these can give them the leading edge. This, in turn, places a responsibility on us to ensure that contractors are supplied with the most cost-competitive, high-quality products available.”
Khlat explains that this drive has pushed FJTCO in a number of different directions. “We add a lot of local value in order to sustain our business. Our aim is not only to be a trader, but to differentiate ourselves as a complete service provider. Hence we manufacture or semi-manufacture up to 65% of our products, which places us in a totally different dimension.”
The company is also flexible enough to be able to supply the smallest pump to the largest boiler that may be required. “We have a very comprehensive range, due to us being associated with large manufacturers.”
In terms of the latest trends impacting on the industry, Khlat says energy conservation is finally moving beyond being a statement of intent to a practical, implementable reality.
“We are at the beginning stages, and there is still a lot that has to be done, like DEWA shifting to night loading to conserve electricity. Another major change has been in the area of building design, where energy management has become a major issue. This places a huge onus on us as the supplier to ensure that adequate and appropriate equipment is installed. Another question is how large systems behave over time. Thus monitoring and measurement are becoming equally critical, in addition to design issues such as better insulation and improved air tightness, or ensuring that air-con systems are not noisy and annoying.”
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