UAE’s Intercoil International signs deal with Kenyan company to expand into East African market
Dubai, UAE, 16th of September 2013 – Intercoil International, the pioneering UAE manufacturer, retailer and distributor of total sleep solutions, has announced its first foreign licensing agreement with Kenyan Bobmil Group of Companies. The deal which allows Bobmil Group to exclusively manufacture and sell Intercoil’s bedding products in Kenya, marks one of the first manufacturing licensee agreements by a UAE-based business to other countries in the world.
As a key import market in the Middle East, the UAE trade pipeline is primarily filled with international brands entering into licensing agreements with UAE businesses. The outflow of licensing agreements from UAE businesses to other markets is minimal, although likely to grow with the country’s active encouragement of manufacturing throughout its seven emirates.
A recent study published by Dubai Chamber states that the UAE manufacturing sector is amongst the highest contributing sectors to the UAE’s non-oil GDP, tracked at a steady 14 percent contribution over the last decade, and mirroring that of the UAE GDP growth path.
Commenting on the landmark agreement for Intercoil International, the company’s Managing Director, Mr. Hassan Al-Hazeem said: “In the forty years since Intercoil International was established by my late father, Abbas Ali AI-Hazeem, we have worked hard to build a brand that instills trust, confidence and the highest quality manufacturing. This agreement is an important milestone for us: not only is the Intercoil International brand recognised for its value, but we are also able to take the “Made in the UAE” mark out to new markets, an initiative that is incorporated in our business strategy.”
Through the licensing agreement Bobmil Group will import and install the state-of-the art machinery and technology used by Intercoil International in its UAE manufacturing facilities, and will benefit from the company’s expertise, quality control and long standing experience in the bedding industry. Bobmil Group will also be responsible for retailing the Intercoil International products in Kenya, and is scheduled to open a number of Intercoil Sleep Galleries in prestigious shopping centres across the country.
Mr. Milan Shah, Managing Director of Bobmil Group, one of the largest manufacturers of PU foam and polyethylene products in East Africa, said: “We are delighted to represent and launch a premium brand like Intercoil into the East-African retail and hospitality market, and to partner with a company that offers exceptional knowledge of the bedding industry, extensive manufacturing experience, and an excellent reputation as a business partner. This will allow us to diversify our product offering and better serve the Kenyan market.”
Having already a retail presence in Egypt and other African countries through exclusive distributors and dealers, Intercoil’s growth strategy is to expand their geographical reach to the African continent as well as to other developing countries outside the Middle East. “Our goal is to be able to cater to new markets and strengthen our presence in existing ones. In addition to our first licensing agreement in Kenya, we are also in the final stages of structuring a franchising model for our retail outlets” said Al-Hazeem.
About Intercoil International:
Established in 1974, Intercoil International is a leading UAE based manufacturer, distributor and retailer of total sleep solutions across the MENA region. The company is a family-owned business, founded by the late Mr. Abbas Ali AI-Hazeem, and currently managed by Mr. Hassan Abbas AI-Hazeem, who is passionately committed to developing Intercoil into a globally recognised brand, achieving sustainable growth and becoming the market leader in orthopaedic sleep systems in the region. With a strong presence in 23 countries and employing 350 people, Intercoil International is committed to increasing its regional presence and expanding its production capacity. Intercoil’s brand promise is to increase awareness about the importance of a healthy sleep and to proudly promote the “Made in UAE” mark. The first in its industry to achieve the ISO9001:2000, ISO14001, and OHSAS18001 quality management certificates, Intercoil is currently ranked fourth in the Dubai SME 100 and has been awarded the Dubai CSR label for the last three consecutive years. Holding the Dubai Quality Appreciation Certificate, Intercoil International produces its own range of foam, mattresses and furniture products and is the exclusive licensee of Therapedic for the GCC and Simmons for the Middle East.