BUOYED by a substantial growth in turnover in a difficult year, Global Source Establishment is focusing on a growth strategy that includes expansion of its portfolio of construction products and equipment and its physical presence.
The strategy aims to propel the company to a leadership position in the construction laboratory testing equipment supply business.
Amid the positive signals in the Saudi market, the company has set in motion the plan to supply testing equipment for construction-related laboratories.
“We are in the process of entering the field of supplying equipment for material testing in a major way,” says Sameer Subair Valiyakath, business manager. “At present, we are holding talks with two Italian majors in this field and if all goes well, we will become a major supplier of testing equipment for construction-based laboratories very soon.”
The company’s primary product lines comprise equipment for lifting precast concrete elements, industrial workmen’s safety products, tools and equipment for plastic welding and fabrication, material testing equipment for construction laboratories, and products used in sewage systems such as manhole ladder steps coated with plastic.
“Plastic welding technology for sewage projects in and around Saudi Arabia is something that may be found uniquely with us in our showrooms,” he says. “These tools used for plastic welding are from German manufacturers.”
The company extended its plastic fabrication and welding tools business last year to also include turnkey solutions from thermo-plastics, such as setting up hot-dip galvanising plants for steel industries, storage tanks for chemical industries in collaboration with a German company, he adds.
As part of the expansion process, the company will set up branches in Jeddah and Dammam, in addition to its Riyadh facility.
As a trading establishment, the company supplies construction equipment to manufacturers and contractors who are involved in prestigious projects all over the kingdom. “Our clients have put our products to use in various projects of the kingdom such as King Abdullah Economic City, Princess Nora University, Imam University, King Saud University, Almarai Bakery and many more prominent development and civil construction projects,” says Valiyakath.
According to Valiyakath, the company’s business has been growing rapidly every year, with turnover registering an increase of 40 per cent on a year-on-year basis from 2008 to 2009. Global Source Establishment was even able to work around the global slowdown and maintain its market share. “Being part of a strong economy in Saudi Arabia, we didn’t feel the heat of the global downturn as much as our counterparts in other countries,” Valiyakath says. “We did, however, face problems with our cash flow with clients holding back payments mainly due to the fear generated by the media, which in turn spread by word-of-mouth.
“We, in fact, tried to use the situation to our benefit by negotiating with our suppliers to stretch our credit limits and bargaining for stocks on consignment etc. And the silver lining for us was that it reaffirmed our belief in building strong customer ties, which is helping us hold on to our market share.”
According to him, the panic created by the economic crisis worked well in some ways for Saudi Arabia as a whole, too. “It had some positive impact on the construction scene in the kingdom – companies streamlined their operations, ready to take on any adverse effects of the crisis. And in the process there was more optimisation in the usage of resources.
“Other shifts in policies included moving from buying what is ‘cheap’ to buying what is ‘economic’ or something that has more ‘value for money’,” he says
Valiyakath is optimistic about the prospects for the future. “Looking at the quantity and quality of projects over the coming years in Saudi Arabia, we have a very positive outlook about the coming years – not just for us but for all stakeholders directly and indirectly involved in the sector. Furthermore, various innovations making their way into the Saudi Arabian construction scene improves and increases our scope of supply,” he says.
Established in 2006, Global Source Establishment operates from an office and a showroom near Riyadh First Industrial Estate and a warehouse in the Faisaliyah area of Riyadh, in addition to a factory in India. Valiyakath says the company is among the main vendors of certain key accessories used in concrete pipe manufacturing in Riyadh.
“Our unique selling points are our promptness in delivery of products, customer support services, introduction of products that suit the market’s needs and importantly, providing customers what they need and being flexible. This comes from cultivating a habit in our staff to listen to clients and not just hear what they have to say. Therefore, a friendly and life-long relation builds naturally,” he concludes.
