EMPA Middle East FZCO

Sales & Marketing Director: Shahood Khan

Tags: Channel Middle East Power List 2010EMPA Middle EastUnited Arab Emirates
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EMPA Middle East FZCO Sales & Marketing Director: Shahood Khan
By  Jonas Published  March 28, 2010 Channel Middle East Logo

Contact: +971 4 803 9500
Website: www.empa-me.com
Headcount: 85
Active Accounts: 740
Regional Offices: Egypt, Saudi Arabia, UAE
Key Brands: Fujitsu, Intel, Iomega, Kingston, Lite-On, Netgear, Philips, Toshiba
Ownership: EMPA Middle East is owned by private investors who purchased the company from the Turkish EMPA Group more than eight years ago
2009 Sales:
2008 Sales: US$123m (Verified)

What measures have you taken to ensure your company remains competitive?

We work on ROI and so we have focused on products that are profitable and on markets that can give us better margins. There has been more focus on the in-country and retail businesses. Retail has really helped us because today our credit line in channel is being squeezed, but for retail we don’t have any issues. If Carrefour requests US$4m then it’s going to be fine with the insurance company. The insurance factor has pushed us to focus on retail, but because we have a separate division with expertise in that we have managed to grow this share of the business.

What are your main strategic plans when it comes to developing the business in 2010?

Our plan is to go in-country in Kuwait and Jordan by the second quarter and continue focuing on our in-country business in Saudi Arabia. We will also look to focus on power retail and add new brands, mainly where we can get a higher profit percentage. We are looking more at the PC and networking segments because our components portfolio is full. Stock availability and people expertise are very important to us, as is being close to the customer. A lot of the time our competition probably thinks EMPA will have offered a lower price and got the deal, but that is not the case. It is about relationships and being close to the customer base. MNCs would not understand this, but in our region relationships drive a lot of business.

Company focus

As reliable and consistent as they come, Intel specialist EMPA is one of the names that automatically springs to mind when you think of components distribution. That said, the company has cultivated a strong consumer-based portfolio that has given its business real balance and seen it gain access to some of the biggest retailers in the region during a challenging market environment. Investments that EMPA is making in a new ERP system should lead to it packing an even greater punch in future.

Channel Middle East Verdict

EMPA can be pleased with its performance last year, especially when you consider that ASPs on many of its core product lines encountered some serious declines. Its in-country Saudi business and E-retail distribution arm are gaining increasing significance in the company’s wider operations and that is only likely to continue in 2010 and beyond. If EMPA has plans to scale the business any further then bringing more finished goods vendors on board looks as though it will be a necessary move.

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