Zamil wave cools the Middle East

Starting from humble beginnings, Zamil first became a major player in the Saudi market, and today boasts a mammoth 27% market share of the substantial Gulf market.

Diligent planning and an unstinting perseverance in delivering the highest standard and quality were the stepping tones to this success. Zamil is the first to have created a state-of-the-art laboratory test facility, which is a certification body for other air conditioning manufacturers in the region. Zamil also has the distinction of being the first non-American manufacturer to get certifications like the ARI and Eurovent. All these are what led to Zamil becoming the largest independent manufacturer of air conditioners in the Middle East, producing about 500,000 units of different categories per annum.

Zamil's success comes from its visionary planning. Over the last few years, Zamil implemented a policy of phased acquisitions aimed at gaining access to technology in its area of core competency - through European acquisitions with proven strengths in R&D.

"Our acquisitions in Europe are aimed at boosting our technological capability to leading edge status at the global level, rather than on acquiring their product or branding," says Abdulla Al Zamil, senior vice-president.

The international acquisitions include Climatech Austria, Kessler Climatech Germany, and Geoclima Italy. All these acquisitions are consolidated into one entity, Cooline Europe. That may explain why Zamil Industrial Investment Corporation (ZIIC) has become a diversified conglomerate comprising Zamil Air Conditioners, Zamil Glass and Zamil Steel.

This stress on technology has been a constant thread running through the company's history. The company invests in all aspects of technology and upgrade of manufacturing systems, which has today enabled it to develop and innovate most of its products in-house. It has also led to the company being among the GCC leaders in discharging its social responsibility while enabling it to plant its foot more firmly in the global arena.

This is evident in the indigenously developed Cooline range of ACs which have become the benchmarks for performance and endurance - they are known for being robust, environment-friendly, and can easily withstand up to 55 degrees Celsius and 90 per cent humidity. Says Abdulla Al Zamil, "None of our products use CFC gases, and that's one reason why our Cooline range of air-conditioners have gone on show in America." What's more, Zamil Air Conditioners are marketed in 55 countries through various subsidiaries including Cooline America and Cooline Australia.

While constant technological innovation may hold part of the key to its success, constant product marketing holds the other part. As Al Zamil observes, "We annually spend Dhs. 20-25 million on brand-building and spreading product awareness." This was evident in the launch of the Cooline brand of Air Conditioners. The innovative multimedia campaign that accompanied the launch, created a sensation and established Cooline as a young, international, tech-savvy brand. This was reflected in the sales where Zamil excelled its targets within just a few months of the launch. The strategy of separate branding and distinct positioning for Cooline and Zamil Classic also helped Zamil grab a larger share of the AC market. Moreover, on the back of Zamil Classic's successful launch of Ultra in Bahrain, Zamil Classic is poised for a major re-launch in Oman in 2003.

Today, the company produces the entire range of air conditioning and cooling equipment, with its line-up extending from window units and mini-split systems, through DX central air-conditioning systems, double-skin air handlers, and chillers that go up to 650 tonnes. Increasing industry acceptance has come in the form of the company also producing AC systems for a number of international manufacturers under OEM agreements.

In fact, to display its range of Climate Control Solutions at the BIG-5 Exhibition in Dubai during October 26-30, Zamil will set up a custom-designed 600 square foot stand which will be the largest ever at the Exhibition. This stand will display Package Units, Ducted Splits, AHUs, FCUs, Condensers and the entire Consumer range, at this Exhibition, which is the largest trade show for the Construction industry in the Arabian Gulf, featuring around 1,500 companies from 50 countries.

Having gained supremacy in manufacturing and domination of the Gulf market, Zamil is now moving into next phase of expansion with the opening of a new entity, 'Zamil Gulf' in Dubai. Zamil Gulf will help focus the Marketing and Business Development of Zamil Air Conditioners, Zamil Steel and Zamil Glass. Shaker Almoussa, General Manager comments, "We are planning an aggressive expansion, which will be spearheaded from Dubai, the commercial center of the Middle East. Also, Dubai with its strategic location, infrastructure, and current economic and industrial growth offers the best in all aspects."

Zamil Gulf will also establish Coolcare, an innovative organization that will enhance after-sales support and customer care in the UAE. Zamil Gulf will be located in 7000 square metres of office space in the prime location of the Dubai-Sharjah Highway. Coolcare will also serve customers by ensuring a timely inventory of spare parts.

Shaker added that Zamil was planning to use Dubai as the launch pad for expansion into international markets including Iran, CIS, and East and North Africa. He said the air conditioning market in the Gulf region is booming, with the total market estimated to be worth $600 million, and Zamil intended to grab a lion's share of this regional growth.