Dubai's Danube grows as UAE demand for steel, timber rises
With the Burj Khalifa and World Trade Center Abu Dhabi among its clientele, Danube Group's materials division is "thriving", its CEO said
Danube Building Materials calls itself the region’s leading supplier of construction materials. It boasts a portfolio of more than 50,000 steel, timber, ceramic, and aluminum products, all of which comply with the UAE’s updated Fire & Life Safety Code of Practice. With a growing shift in the industry towards sustainability, Danube Building Materials has also developed a line of eco-friendly products.
Waste and sustainability are important issues for the company, as many contractors are actively working to minimise waste on building sites, which can often be the result of materials misuse. Danube claims to have its own measures to ensure there is no waste from its side of the operation.
By providing eco-friendly and fire-resistant materials, Danube Building Materials is going from strength to strength as construction continues apace in the Middle East. Madhusudhan Rao Tumpudi, the company’s chief executive officer, explains why.
What major projects have you been involved with recently?
We have our footprints on almost all of the major projects in the UAE, such as the Burj Khalifa, Dubai Airport Terminal 3, Abu Dhabi Airport, Dubai Parks and Resorts, World Trade Centre Abu Dhabi, Palazzo Versace Dubai, as well as many other hospitality, residential, and commercial complexes, shopping malls, and villas.
How did Danube Building Materials perform last year, and what are your expectations for the next 12 months?
With so much construction going on, our business is thriving due to the simple fact that every construction site needs our materials – be it an infrastructure project, a building, or a civil structure that needs wood, steel, sanitary ware, ceramic tiles, or aluminium cladding.
Danube Building Materias’ witnessed 12% growth last year and we are expecting around the same percentage of growth this year. With the ongoing construction work leading up to Expo 2020 Dubai, the market will remain buoyant as developers and public authorities race against time to deliver the infrastructure, hotels, and residential supplies by October 2020.
So, for the next 24 months, we will be busy, and most of our supplies are already booked by developers and contractors.
What are the major areas of growth you expect to see in the Middle East, and how do you aim to capitalise on these?
Expo 2020 Dubai has provided a strong stimulus for construction activities in the country. The recent announcement of the new Dubai Creek Harbour megaproject will add more opportunities for construction, as well. As Danube is one of the leading building materials suppliers, we will definitely capitalise on these opportunities.
What are your strategic objectives for Danube Building Materials?
We want to maintain our position while working towards growth in revenues, growth in earnings, higher returns on invested capital, and a more diversified revenue base. We have invested heavily to diversify our portfolio and have created a considerable number of jobs.
What are some of the main trends in the market, and how do they influence your decision-making?
The main trend we see is the use of sustainable products and we, as a brand, have introduced many eco-friendly products that are certified by the Forest Stewardship Council.
Most of the government buildings are made up of sustainable products, which clearly indicates that sustainable products are a big part of construction’s future.
What impact have the twin factors of waste and sustainability had for Danube Building Materials?
We are mindful of the twin issues of waste and sustainability. Construction waste comes from how contractors use or misuse materials. As a supplier, we deliver the materials to the construction site or their stores intact as imported, so there is no waste from our side. We do not generate waste, which comes from the construction site and depends on how the materials are used. Amid these trends, we have recently started manufacturing a new range of sustainable products.