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Dubai News Today | أخبار دبي اليوم
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Caparo Middle East launches electrical conduits and fittings manufacturing JV in Dammam, Saudi Arabia

Dubai News Today by Dubai News Today
Monday, October 28, 2024 8:12PM
Reading Time: 4 mins read
A A
Photo: Representative

Photo: Representative

Increased investment in infrastructure, utility, housing, aviation, tourism and construction is accelerating the growth in electrical conduits and fittings industry set to grow to US$19.9 billion in 2032, nearly double the US$10 billion market value in 2023.

Caparo Middle East, a leading manufacturer and distributor of industrial and electrical products, today inaugurated its first investment in Saudi Arabia, in a fully-integrated state-of-the-art manufacturing plant in Dammam, Al Khobar region of Saudi Arabia.

The manufacturing plant is a joint venture, Caparo Tabalsa Arabia Factory Co. LLC, between Caparo ME and Eng Sinan Ali Ahmed Bukamseen, a reputed Saudi Arabian investor, developed with an investment of SR25 million. The joint venture is also expected to create about a hundred jobs, of which forty have been filled already.

Caparo ME’s specialisations include electrical metallic conduits and fittings complying with American UL standards. Located in the 2nd Industrial City, Dammam, KSA, the 30,000 square feet factory is built on a 50,000 square feet plot of land that will cater to the growing needs for these products in the Middle East and Africa regions. At full capacity, the factory will produce about half a million electrical conduits and related fittings per month.

The market size for electrical conduit products was valued at US$10 billion in 2023 and will reach over US$19.9 billion by 2032, propelled by increasing concerns related to electrical supply faults, fire hazards, health risks, and operational safety, according to Global Market Insights (GMI). Of this, the market size for metal electrical conduit was worth around US$3.1 billion in 2023 and is anticipated to reach over US$5.6 billion by 2032 driven by the growing concerns around electrical supply issues, fire dangers, health hazards, and operational safety.

Currently Caparo ME distributes these products by importing them from factories in managed facilities from China & India. The new manufacturing facility in Dammam will help reduce imports and assist Saudi Arabia to achieve self-sufficiency and become an exporter of industrial and electrical metallic conduits and fittings.

It is the first step by Caparo ME in Saudi Arabia. This expansion will contribute to the Saudi economy and increase prospects for further investments by Caparo ME in the future. The new plant will help Caparo ME revenues grow through manufacturing in KSA rather than importing product, not only increasing market share in KSA, but also in the GCC, the wider Middle East and Africa.

Caparo ME is part of the global association of Caparo businesses founded by the Rt Hon Lord Swraj Paul PC, a global name in business leadership. Commenting on today’s inauguration, Lord Paul said, “This new industrial venture reflects Caparo’s long-term commitment to the Saudi Arabian economy, as it evolves and diversifies to become a major global economic powerhouse. We are very happy and proud to be able to inaugurate this investment at this time.

“This manufacturing plant will play a vital role not only in eliminating imports of industrial and electrical metallic conduits and fittings complying with American UL standards, but also help Saudi Arabia to export these products to the GCC countries, Middle East and African markets. In this way, we are also aligning ourselves with the economic diversification plan under the Saudi Arabian Vision 2030.

“Following the Saudi Arabian Government’s vision to encourage FDI into manufacturing and the industrial sector, we are also supporting the Saudisation drive by creating employment, paying taxes and levies, generating exports and reducing dependency on imports.”

Headquartered in London, UK, the Caparo group of associated businesses operates across the world, predominantly in manufacturing, distribution and sales at over forty locations. The Rt Hon Lord Swraj Paul PC has been a philanthropist and financially assists many through the Aruna and Ambika Paul Foundation. His daughter the Hon. Anjli Paul heads the Middle East business.

Hon. Anjli Paul, Director of Caparo ME, commented: “Following the inauguration of the joint venture manufacturing plant, we will become a dominant force to be reckoned with in the region. Aligning with the vision of the Saudi Arabian Government, we will promote local manufacturing and local human talent, and look forward to increasing Caparo’s business presence in KSA.”

Caparo ME has been operating independently from Dubai and serving the GCC market since 2005. Caparo ME’s product lines consist of electrical conduits, fittings and cable connectors under its Caparo and Simplex Cables brands, and Caparo Energy industrial batteries. This is the first venture into KSA with investment in manufacturing.

Lord Paul and Hon. Anjli Paul congratulate the Caparo ME team, comprising Sonu S Thakur, Hassan Raza, Kifayat Parker, Joyson, Bala, Suraj, Swami, George and Rene for their efforts in the Middle East expansion.

About Caparo Middle East

Caparo Middle East FZE is a manufacturer and distributor of industrial and electrical products, including cable management products and industrial batteries. It is part of the Caparo diversified global association of businesses founded in 1968 in the UK by Rt. Hon. Lord Paul of Marylebone. Today, the group operates internationally over 40 sites, serving customers in more than 50 countries, primarily from operations based in UK, USA, India and the Middle East.

In 2005, Caparo ME was established in Jebel Ali Free Zone, Dubai and is involved in the business of cable management and related products to the region. Its products have been supplied to all major projects in the region including Burj Khalifa, Yas Island, Palm Jumeirah and Burj Al Arab. The company operates from its own warehouse, showroom, and offices, employing a highly focused team providing customers with stock, logistics, technical and sales support. Working with an extensive network of regional partners in the UAE, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and neighbouring countries, it has built a reputation based on premium products and quality of service.

Tags: businessmiddle eastsaudi arabia
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