GENAVCO on protecting against market fluctuations
Asif Khan explains why a broad product portfolio is a must
The equipment dealers that have been most successful in the wake of the financial crisis have been those with broad product portfolios capable of compensating for market fluctuations. As division manager for GENAVCO’s Equipment Business Unit, Asif Sayeed Khan is only too aware of the need to ensure that all of his bases are covered.
“Not all market segments have picked up to the extent that we would have liked, but some are doing excellently,” he told PMV.
“The road construction sector is performing particularly well at present. Although we are experiencing demand from across the UAE, I would say that our major focuses have been Abu Dhabi and the Western Emirates. One of the most talked-about projects is the widening of the road between Mafraq and Ghweifat. Contractors such as Al Jaber and Ghantoot are currently working to expand this 325km stretch of road, and this is driving demand for related equipment,” Khan added.
Indeed, the GENAVCO division manager revealed that to date, his department has exceeded its 2014 growth target by 27%, largely due to the Emirates’ resurgent road-building sector. However, demand is not confined to the country’s highways, as he explained.
“The expansion of Abu Dhabi International Airport is also precipitating demand for this type of equipment,” he said. “So too are the runways and taxiways that are being repaired by Al Naboodah at Dubai International Airport. These are really good projects when it comes to sales of road-building equipment.”
In a bid to capitalise on this growth, GENAVCO added Sigma asphalt plants to its product portfolio in 2013. Not content to rest on their laurels, Khan revealed that he and his colleagues plan to add plate compactors and walk-behind rollers to their line-up during the current quarter.
“These products will be added to our range [in August],” he said. “We’ve already identified a partner; I cannot provide a name until they’ve signed, but the agreement is almost finalised. I can say that this is a German manufacturer, very keen to tie up with our existing Wirtgen Group offerings. The two companies’ products go hand in hand.”