Flexible Growth

Gerhard Hope , August 1st, 2010

Leminar Air Conditioning has clinched an exclusive distribution agreement with RWI Industries. We speak to RWI GM Fareed Majeed and Leminar GM Pramodh Idicheria.

What is driving rubber demand in the region?
Contractors today are focusing more on minimising the costs of their projects, leading them to identify the capacity of high-quality rubber insulation to save time, as well as labour and maintenance costs, in the long term. This trend is also indicative of the market’s continued movement towards maturity.

Can this be taken as a sign that growth has resumed following the downturn?
Even at the height of the financial crisis, we were able to maintain stable production outputs and reach our annual targets, and this is because of the steady demand for our products from our global clientele.

What are the particular HVAC applications for Gulf-O-Flex?
Gulf-O-Flex is a versatile range of rubber insulation products which can be used for pipe and duct insulation, and hot water and chilled water applications to meet the requirements in the oil and gas fields, construction, shipping and automotive industries.

What are Leminar’s plans for increasing product uptake?
Leminar plans to leverage the market standing of Gulf-O-Flex as a leading and well-accepted brand in the GCC region as the primary selling point, which will help the company secure AED30 million in annual sales in the UAE. The new distributor is also planning to further strengthen the brand’s position by providing customers with excellent service that matches the unparalleled quality of the product. Leminar is eyeing Abu Dhabi and Qatar, as both are currently the most active construction markets, and therefore pose the biggest growth opportunity for our products.

The distribution agreement stands to raise the profile of both companies in the region?
Under the terms of the agreement, Leminar will represent the Gulf-O-Flex brand for HVAC applications exclusively in the UAE. The partnership is aimed at further entrenching RWI’s position as the leading provider of closed-cell rubber insulation in the UAE, given that it accounts for 56% of the Middle East rubber insulation market share, supplying the majority of the region’s requirements for rubber insulation pipes, sheets and other rubber-derived products. With the solid foundation and strong backing of Leminar in terms of a distribution network in the UAE, RWI has full confidence that its new partner will be able to hit their sales target for Gulf-O-Flex this year. On the other hand, the new distributor plans to capitalise on its association with an established player in the UAE rubber insulation market and a trusted partner of many construction companies in building world-class developments.

Is green building/energy efficiency playing a significant role in the increased demand?
The growing demand of the environmental market, which is made up of alternative energy, energy efficiency, water and wastewater treatment, solid waste management and green building technologies, is driving construction majors to adopt measures that are in line with green building codes and sustainability efforts. Amidst this growing trend, RWI is promoting the importance of sustainable design through its range of eco-friendly rubber insulation products.

Could you give some more detail on RWI’s factory expansion plans?
Spurred by the growing demand for RWI products across the region’s most important industries, RWI has adopted a strategy to maintain continuous growth and expansion. The latest of these efforts involved an AED30 million investment to triple its production to 3,600 containers per year by 2013.