HBG Holdings, the Dubai-headquartered, consumer products group, announced it will invest up to JD 17.6 million (US$25 million) in its Jordan subsidiary - HBG Marketing Jordan (formerly Spinneys Jordan), over the next 18 months. The investment will underpin HBG’s aggressive three part expansion programme.
The first part will involve acquiring new agencies to complement the current portfolio and also entering new segments, in particular frozen foods. Cold storage facilities will be upgraded to 8000 square feet, on four levels and 900 pallet positions, with a total storage capacity of 1200 tonnes.
Part two will extend the current ERP system by introducing handheld computers in order to optimize the distribution network and create better visibility of the sales force, improve execution of marketing programmes and effectively measure key performance indicators.
Part three will focus on expanding the distribution network into Iraq with the construction of a dedicated distribution centre in Northern Iraq.
Zulfi Hydari, Managing Director of HBG Holdings said that over the last two years an immense amount of hard work has gone into reviving the fortunes of what is one of the region’s longest established and leading FMCG distribution companies.
“This has included, among others, optimizing the portfolio, investing in the distribution centre and refining processes to enhance logistics efficiency and improve customer service. Now we are ready to take the operation to a new level with this investment programme,” he said.
HBG Marketing Jordan’s portfolio consists of some of the region’s best known names includingKraft Foods; Nabisco; Kellogg's; Wrigley; Heinz; Chupa Chups; Hero; California Garden; Diamond; Sanita and Najjar Coffee.
“In the year from summer 2004 – 2005, following HBG’s acquisition of the then Spinneys operation, business grew 32 per cent,” adds Hydari. “I am delighted to be able to report that we were able to continue that trend and in the year ended June 2006, the business recorded sales growth of 20 per cent and more importantly doubled net income. As a result the business recorded a very healthy Return on Equity (ROE) of 32 per cent, up from 20 per cent in 2005.
With the growth in business, have come new job opportunities. The company is actively hiring at all levels to add to its 250 strong workforce.
© 2006 Al Bawaba (www.albawaba.com)
