Khind, a global consumer electrical and electronics manufacturer and a smart solutions provider for cooling and lighting, has signed an agreement with retail giant Al Futtaim to distribute Khind products in the consumer electronics segment across the UAE.

 

The agreement will boost the household appliance market revenue in the Middle East and Africa (MEA), region that has been growing from $6.3 billion (Dh23.12 billion) in 2017 to $7.6 billion (Dh27.9 billion) in 2021, according to Statista.com, a global digital market intelligence provider. Household appliance market revenue in the MEA is projected to grow to $8.4 billion in 2023.

 

The agreement illustrates the shared commitment of both parties to further penetrate the market and broaden their reach within the Middle East region that will also help the market to grow in the next few years.

 

Adil Mistry, Group Chief Executive Officer, Khind Holdings Berhad, said: “We have enjoyed many longstanding vendor relationships throughout our years in business and we are pleased to strategically align ourselves with Al Futtaim’s strong distribution network. I hope this will be a winning combination for us.

 

“I strongly believe that right distributor enhances a company’s exposure in the product market and can give an edge in terms of speed and efficiency. This association will widen our customer reach and help us to grow faster in the region.”

 

Khind, which looks after the market development for the brand in 15 key markets across the region, has recently relocated to a bigger regional head office to increase the brand’s presence and boost the region’s growing consumer electronics and home appliance market.

 

The agreement was signed at the Malaysia External Trade Development Corporation (MATRADE) in Dubai, in the presence of Omar Mohd Salleh, Malaysia’s Trade Commissioner to the Gulf region.

 

“The UAE is Malaysia's largest trading partner in GCC and both countries enjoy a strong bilateral relationship. The agreement between Khind Holdings Berhad, a major Malaysian electrical and household appliances brand, and Al Futtaim will help the company’s products reach a larger customer base in the UAE,” Salleh said.

 

“This will help to create a win-win situation for both the partners and will help increase our exports to the UAE and strengthen our bilateral trade in the coming months. I take this opportunity to thank and congratulate both the parties. MATRADE will continue to facilitate such cooperation.”

 

Revenue in the UAE’s vibrant household appliances segment is projected to reach $332 million (Dh1.21 billion) in 2021, according to Statista. Revenue is expected to show a Compound Annual Growth Rate (CAGR) of 14.84% between 2021 and 2025, resulting in a projected market volume of $577 million (Dh2.11 billion) by 2025.

 

In the household appliances segment, the number of users is expected to amount to 2.9 million users by 2025, resulting a user penetration level of 21.5% in 2021 and is expected to hit 28.2% by 2025. The average revenue per user (ARPU) is expected to amount to $154.26. In the Household Appliances segment, 50% of total market revenue will be generated through online sales by 2023, the report said.

 

Al Futtaim is one of the largest diversified business conglomerates which has footprints in key markets in the Middle East. It represents some of the best global electronics and automotive brands and retail chains in the region. Khind is another feather in its cap.

 

Sachin Wadhwa, Managing Director of Al-Futtaim Electronics, said: “Through its relentless pursuit of excellence and providing products and services of the highest quality standards, Al-Futtaim Group continues to deliver on its promise of enriching the lives and aspirations of its customers each and every day. Al-Futtaim Electronics in partnership with Khind Middle East, uphold these values in bringing quality products at a competitive price point.

 

“We are excited to partner with Khind Middle East in distributing its range of class-leading products in the UAE, providing our customers with a unique and excellent shopping experience. We are confident that the partnership between Al-Futtaim Electronics and Khind Middle East will be beneficial for both companies in achieving success in in the distribution strategy and peak performance on the market.”

-- TradeArabia News Service