KEEPING YOU CONNECTED.

Following on from our interview with Tawazon at the Middle East Coatings Show last September, PPCJ spoke to Oussama Ghandour, Managing Director, at Tawazon, to find our more about the company, the challenges and trends it faces and to discover more about doing business today in the Middle East region

Q: Tell us a little bit about your company

A: Tawazon Chemical Co LLC is a multinational organisation that has been in operation for more than three decades. The company was established in 1991 with its head office in Dubai and subsidiary operations at various locations, covering markets in Africa, Middle East, Indian Subcontinent and South East Asia. With a turnover of US$125M, Tawazon is a leading distributor of speciality chemicals for Coatings, Construction, Inks, Plastics, Packaging, Fibreglass, Rubber, Food and allied industries. The company is ISO: 9001, ISO: 14001 and ISO: 45001 certified. The operation is managed by a long-term dedicated group of professionals, with extensive knowledge and experience in chemical distribution. Consolidation of speciality chemicals is one of the company’s fortes. Stock points are located in Dubai (UAE), Riyadh (KSA), Jeddah (KSA), India, Indonesia, Kenya and South Africa. Tawazon has been awarded Best Distributor consistently by our principals including Troy (now Arxada), Benda Lutz (Sun Chemicals) and Synthomer. We have also been awarded the best SME exporter of the month by Dubai Chamber of Commerce.

Q: The company has been in operation for more than three decades – what has changed in that time, in terms of: what products the coatings industry is asking for; the difficulties and challenges in the industry; trends in the industry; geographical regions of importance, etc?

A: Tawazon started off as distributor of speciality chemicals, when the focus of most of the players in the industry was on bulk distribution of generics. As paint companies go up the value chain, we have seen a huge shift in focus on speciality additives and pigments. In recent times, apart from acute competition, one of the serious challenges posing the industry is that of maintaining a steady supply of raw materials which has been impaired severely, due to the collapse of supply chains worldwide. We had to beef up our stock holding in the last two years to ensure that our customers are unaffected by the supply chain hiccups. Though that had a sizeable bearing on the profitability, it enabled us to have an edge over the competition in terms of servicing requirements on a consistent basis.

Traditionally for Tawazon, the Middle East and Africa have been our key markets, contributing to the bulk of our bottom-line. However, in recent times, we have expanded our footprint into the subcontinent and the Far East; both of which have been exceptional in growth terms. We also have a foot mark in North America which we aspire to expand to in the near future.

Q: As well as the actual chemical products, what else does Tawazon offer eg, technical support, warehousing, etc?

A: Stocking is our biggest value proposition. Tawazon has a rich understanding of raw materials and chemicals that cater to the coatings and inks industry. The focused approach of the team, ensures that customers are prioritised with prompt technical support from Tawazon’s Principals at all times. We are a one-stop shop for technical queries of our customers, be it trouble-shooting production hiccups or assisting with tailored formulations.

Our supply chain is geared to move huge volumes of inventory across the globe, promptly. With stock points at Jeddah, Riyadh, Nairobi, Chennai, Jakarta, and South Africa (Durban/Johannesburg/ Cape Town and Pretoria) and competent manpower at these locations we are able to effectively co-ordinate deliveries across the globe. This in turn enables our customers to have a seamless experience when it comes to vesting us with their procurement.

Q: What is the mission and vision of the company?

A: We are driven primarily by the vision and mission of our founder(s). Vision: Building reliable partnerships towards mutual prosperity. Mission: “To be the leading raw material supplier to focus industries, while growing internationally, with the emphasis on relationship building, customer-relevant service and our core values”.

Challenges and trends

Q: Can you talk us through the major challenges and trends that Tawazon faces today, in terms of the coatings industry? What is affecting the company and how is it responding to the following different challenges and catering to industry trends:

Raw material costs

A: Raw materials costs have gone up on an average by 35-50% in the last year. This has been on account of various factors including freight charges which have a prominent bearing on the costs, especially of generic low value items. Add to it factors like increasing energy surcharges and key raw material shortages that have led to hikes unseen in the last three decades. With the Chinese government getting stricter with environment norms (due to the upcoming Beijing Olympics) and otherwise too, have also added to raw material costing woes. We had anticipated the hike coming during the onset of COVID and started building up stocks. That, apart from giving our clients financial efficiencies, also enabled them to continue their production uninterrupted during the lean period.

Supply chain issues, logistics and transport issues

A: The supply chain has been affected adversely by non consolidation of empty containers by shipping lines, hoarding of containers by export economies, diversion of containers for emergency medical supplies etc. All this has not only led to increased lead times, but also delays on account of transshipments. We expect things to get better towards the year end unless another COVID variant disrupts the equation. Bloomberg had an interesting statistic to share: before the pandemic, it would take about 45 days from the time cargo was picked up at a factory in Asia for it to depart the US West Coast ports by rail or truck for a warehouse; today the same cargo takes about 105 days.

To add to shipping woes are transshipments whereby important orders got transshipped due to space constraints to remote locations, jeopardising the already fragile situation. We managed to tide through these hiccups with our proactive planning and stocking.

Sustainability

A: At Tawazon sustainability is governed primarily by innovation and adaptation. We are quick to adjust to emerging market situations and are constantly tailing betterment of the value chain for all our stakeholders. We aim to service our customers big or small to the best of our abilities and provide them with value added products at competitive prices and prompt service. To our suppliers, we ensure that their product portfolio gets due attention. We constantly apprise our suppliers with specific requirements from our customers to ensure our customers get access to products which can enable them to offer cutting edge technologies to the market.

Q: What trends do you believe will be most prominent in the industry in the next 10 years?

A: Changes in environmental regulations and increasing potentials for greater sustainability and performance at competitive pricing will continue to drive innovation. Tightening environmental norms, globalisation, reduced costs and the necessity to surge efficiency – through ease of application, condensed material usage through thinner film builds and the ability to apply coatings over uneven substrates would be trends impacting industrial coatings. Similarly, decorative coatings which are low VOC and child friendly coatings will have a huge market in times to come.

With health being a prime focus, hygienic coatings which in the past were primarily categorised under the industrial segment restricted primarily to hospitals and medical centres, will have a new niche in the decorative segment too. Likewise for underdeveloped economies in Africa, antimalarial coatings and antiviral coatings will be the prominent game changers in the deco segment.

For specialised industrial coatings like aerospace, the focus will be on high performance coating materials, which provide protection against corrosion, ultraviolet rays & solar heat, climatic stress, and offer wear resistance to aircraft surfaces, thus reducing the amount of time

for maintenance and repair. All these are a few of the upcoming trends of the industry in times to come.

Q: What challenges do you anticipate in the next 10 years?

A: The global paints market is projected to grow from US$150.76bn in 2021 to US$217.66bn in 2028 at a CAGR of 5.4% during the 2021-2028 period. We expect global economic recovery to prevail through the whole of this year, if not until the first half of 2023. A slew of headwinds including Omicron, UHU and the existing delta variant, inflationary pressures, Fed’s potential rate hikes, China’s property downturn along with the systemic shutdown of polluting industries and other geopolitical concerns may slow down the pace of growth in the short run, coupled with the fact that paint companies have not been able to pass on the price hikes to their end customers, which has an important bearing on the overall health of the industry. But we are still optimistic about the paint industry either surpassing or coming very close to the industry forecast of US$217bn in the next six years.

Other challenges include the mushrooming of competition, foreign exchange fluctuations in export markets, especially the ones which are not pegged to the dollar and mergers and acquisitions of key principals also would have a prominent bearing on the business in the long run.

Middle East region

Q: What trends are specifically important to the Middle East region?

A: The Middle East is a very established market where the focus primarily is on the value proposition to the end user. Low VOC paints, UV wood coatings and intumescent coatings are the latest trends in the region. We have also seen a gradual shift to organic pigments in the decorative segment. There is a gradual phasing out of lead, as companies strive to be more responsible in their offerings.

Q: What are the main benefits of doing business in this region?

A: There are multiple advantages in doing business in the Middle East. First, we are located almost in the centre of the world. The UAE is an international transit point. Our geographic location is a great strategic advantage. Secondly, both the local and expat population has access to disposable income owing to better perks and salaries in the region. Another great advantage of the GCC region is the fact that there is no personal income or corporate tax in the region as of now. VAT which is applicable in some pockets of the GCC is also at very low rates compared to the rest of the world. Yet another benefit is the fact that most of the currencies in the Middle East are pegged to the dollar. Add to it, the fact that most of the GCC countries do not have a branch profits tax. Repatriation of profits between branches and their head offices are also not subject to withholding tax (WHT) or other forms of repatriation tax in the UAE for example. In addition to this, the UAE boasts a marvellous infrastructure along with being one of the best places in the world to do business. The vision of the leaders is one of the most prominent reasons why businesses thrive in the region.

Q: How are things expected to play out in the Middle East, as we recover from the pandemic and its related effects?

A: Working from home, which was unheard of in the region is becoming a norm, not only in the private sector, but in some government sectors too and is going to be the future of the workplace even after the pandemic is over. Another major shift has been in people investing in their homes more than they did in the past.

A very important observation will be the hike in prices of villas and town houses in the UAE. There has been a 25% hike in independent homes during the pandemic as people prefer to stay in standalone units than apartments. We expect the boom in real estate in the region to continue, owing to the extremely investor friendly sops being rolled out by the UAE and other GCC countries. Travel and tourism have rebounded (although, at the time of writing, it has been temporarily disrupted in the past two weeks due to the surge in Omicron cases worldwide) and tourism will be a major contributor to the economy in the long run.

Businesses will gain huge costs savings with software offering remote meetings like Zoom/Google Meet/GoToMeeting/ MS Teams/Cisco Webex etc. This will completely change the whole landscape of how business will be conducted in times to come. The Arab world’s second biggest economy is already implementing an array of reforms including Golden Visas/Silver Visas and property-linked visas all of which will attract FDI into the country, both in the institutional and retail sectors. The aim is to improve ease of doing business, attract foreign investors, create jobs and diversify the economy to reduce its dependence on perishable resources. The UAE has allowed a 100% foreign ownership of companies in 13 sectors from manufacturing to renewable energy. It has also eased visa restrictions, provided incentives for small and medium enterprises and introduced a new insolvency law in line with established international standards. The UAE stands in 16th place, with respect to ease of doing business and is the strongest performer overall in the Middle East and North Africa region, according to the World Bank’s Doing Business 2020 report released in October.

The Middle East is a resilient economy which has stood the test of time. Despite upheavals on economic and political fronts, the region has always bounced back and we expect double digit growth in the post pandemic world, God willing.

Photo caption: The Senior Management Team. From L to R: Mr Pradeep B R (Business Manager – Coatings); Mr Thiyagu Mani (SR Manager – Finance); Mr Rakesh Mishra (Head of Dept – Plastics & Food); Mr Parvinder Singh (Head– Packaging Division); Mr Oussama Ghandour (Managing Director); Mr Rohan Aranha (Director – Sales & Operations); Mr Nipun Shah (Head of Sales & Marketing – Packaging Dept); Mr Amol Watkar (Head of Sales & Marketing – Inks); and Mr Sudeep Udayabhanu (Business Manager – Coatings)

Today, Tawazon proudly participated in the Dubai Ride, joining thousands of cycling enthusiasts in the heart of Dubai. Representing Tawazon were team members Elaine Dominguez, Saju Ramdas, Aneto James, Arjun Prasad, Swaran Soman, Mohd Iqbal , and Syon Sudeep, who brought energy and enthusiasm to this iconic event that celebrates health, fitness, and unity across the UAE.

As part of the annual Dubai Fitness Challenge, the Dubai Ride transforms Sheikh Zayed Road into a lively cycling track, attracting participants of all ages and fitness levels. The event reflects Dubai’s commitment to promoting a healthy lifestyle and fostering community connections through sports.

Tawazon’s involvement in the Dubai Ride highlights the company’s dedication to wellness and teamwork. The team not only represented Tawazon’s spirit in the community but also embodied the resilience and camaraderie that cycling encourages. Tawazon commends its representatives for capturing the company’s values at this inspiring event. Their journey was about more than crossing the finish line; it was a celebration of health, perseverance, and shared purpose. Tawazon looks forward to future events that reinforce its commitment to fitness and community engagement.

On September 17th, 2024, Tawazon proudly participated in a heartwarming CSR initiative at Aban Stadium, organized by Birthday Bliss under the Ghobash Cares program. The event, titled Packing Greater Hope (Backpacks of Hope), focused on assembling backpacks filled with essential study materials for the children at the Buduburam Refugee Camp in Ghana.

This initiative brought together volunteers from various organizations, with the aim of supporting the education of children in underserved communities. From Tawazon, team members Arjun, Saju, Elaine, and Anu contributed their time and efforts to this meaningful cause, helping pack backpacks that will provide much-needed resources to young learners in Ghana.

Tawazon’s participation in this event reflects our ongoing commitment to giving back to society and supporting global education initiatives. By partnering with Birthday Bliss and Ghobash Cares, we continue to extend our impact beyond the business world, helping to create brighter futures for children in need.

We are grateful to our dedicated team members and all the volunteers who contributed to this project, and we look forward to continuing our efforts in making a positive difference in communities around the world.

About Ghobash Cares

Ghobash Cares is a corporate social responsibility program that focuses on improving lives through various charitable initiatives.

About Birthday Bliss

Birthday Bliss is an organization dedicated to bringing joy and support to underprivileged communities through special events and initiatives aimed at improving the quality of life.

The Tawazon Gala Dinner 2024 took place on the momentous evening of  April 16, 2024, a day marked by an extraordinary deluge, as Dubai experienced its highest rainfall and flooding in the past 75 years of recorded history.

Despite the challenging weather conditions, the event proceeded at the Armani Ballroom in the Burj Khalifa, albeit with a reduced attendance of only 140 guests, as many were unable to attend due to widespread flooding across the city.

Al Azra Events, managed by Mr. Charlie, successfully orchestrated the evening. The entertainment featured African drummers from Ghana, who provided an interactive drumming experience that captivated the guests. Additionally, the stage came alive with the energetic performances of Dhol artists from Punjab, whose foot-tapping numbers added to the festive atmosphere. Mr. Rohan Aranha, Business Director (Sales and Operations), delivered the inaugural speech, extending a warm welcome to all clients and suppliers attending the annual gala dinner. Guests were also treated to gifts, distributed through spot games organized by Charlie and his team. The evening concluded with a DJ spinning an array of foot-tapping tunes, drawing most of the attendees to the dance floor. Guests danced enthusiastically to a diverse selection of songs from different languages, adding to the vibrancy of the event. Due to the heavy rainfall, we unfortunately had to cancel a couple of performances as the artists were unable to make it to the venue.

Tawazon Chemical Company, marking 33 years in the chemical industry, enthusiastically participated in the 30th edition of the Middle East Coating Show hosted in Halls 5 and 6 of the Dubai World Trade Center from April 16 to April 18, 2024.

This event marked a significant moment as, for the first time in the history of the Coating Show, it was abruptly halted on the inaugural day due to unforeseen water ingress into the venue. Notwithstanding this challenge, our esteemed partners, including Troy (Arxada), Sudarshan, Imerys, Vligenthart, Evonik, Sibelco, Sun Chemicals, Allnex, Aditya Birla, and others, actively participated in the exhibition.

Despite the initial setback, the show rebounded admirably, with a steady stream of visitors on the subsequent days. Tawazon seized the opportunity to unveil its strategic decision to introduce speciality additives manufacture  Malflon S.p.A  chemical solutions within a select segment of its product portfolio, a move signaling the company’s proactive stance towards diversification and expansion.

The event’s extended hours on the second day, stretching until 7 pm, accommodated the growing interest and demand, underscoring the resilience of the industry amidst unforeseen challenges. The final day witnessed a notable surge in attendance, surpassing anticipated levels and providing a vibrant platform for networking and collaboration.

Tawazon’s commitment to excellence was further demonstrated by the presence of its dedicated sales teams from key regions such as East Africa, South Africa, and India. Their active participation facilitated meaningful interactions with existing clientele and suppliers, fostering valuable connections and laying the groundwork for future growth opportunities.

Mr. Maman Chacko, a Sales Support team member in the Coatings Department, assumed responsibility for coordinating the arrangements for this edition of the coating show 2024.

In an unparalleled demonstration of unity and wellness, the fifth edition of Dubai Run, was a resounding success under the esteemed leadership of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince, and Chairman of The Executive Council of Dubai.

This monumental event brought together a staggering 226,000 participants for the world’s largest community fun run on Sunday, 26 November. The grand finale of the Dubai Fitness Challenge (DFC) saw the iconic Sheikh Zayed Road transformed into a vibrant running track, hosting the thrilling 5km and 10km routes. People from all age groups and all walks of life participated in the run .

Making their mark in the spirited 5km stretch, Tawazon was represented by the dynamic trio: Aneto James, Swaran Soman, and Saju Ramdas. Their unwavering enthusiasm and dedication added a burst of energy, embodying Tawazon’s commitment to a healthier lifestyle and active community engagement.

In a resounding demonstration of our unwavering commitment to environmental responsibility, the CSR Team of Ghobash Group is thrilled to highlight the active participation of Tawazon Chemical Company in a Beach Clean-up initiative at the Jebel Ali Wildlife Sanctuary.

This collaborative endeavour, conducted organized by the Ghobash group in coordination with the Emirates Environmental Group (EEG), signifies a significant leap forward in our shared mission to foster a sustainable and eco-friendly future. The dedicated team from Tawazon Chemical Company, comprised of Anu Soman, Saju Chacko, Arjun Prasad, Saju Ramdas, Abhay Fernandes, Mohammed Zubair, Pankaj Prabhakar, and Santosh Singh, volunteered for this noble cause. Their tireless efforts aimed at preserving and protecting the pristine beauty of Jebel Ali’s coastal habitat embody the essence of environmental stewardship.

By actively engaging in this Beach Clean-up, Tawazon Chemical Company not only contributes to the well-being of the environment but also aligns itself with the core values of the “Growth For Good” journey that defines our corporate ethos. This initiative exemplifies our collective dedication to leaving a lasting legacy of positive change and responsible corporate citizenship.

In an exhilarating display of unity and wellness, Tawazon proudly participated in the Dubai Ride, a key event of the Dubai Fitness Challenge, initiated by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of The Executive Council of Dubai.

The spectacle unfolded on Sunday, November 12, as Sheikh Zayed Road , the national artery of the emirates, transformed into a vibrant cycling track, beckoning thousands of enthusiastic riders. Representing Tawazon with zeal and determination were  Aneto James, Arjun Prasad, Saju Ramdas, Saju Chacko, and Swaran Soman.

Together, they embarked on the thrilling 12 km stretch, showcasing Tawazon’s commitment to health, fitness, and community engagement. The event not only promoted an active lifestyle but also underscored Tawazon’s dedication to participating in initiatives that resonate with the spirit of Dubai and its visionary leadership.

We are thrilled to commemorate the outstanding journey of Mr. Parvinder Singh, the esteemed Head of the Packaging Division at Tawazon Chemical Company LLC, as he marks a significant milestone of twenty years of dedicated service. Mr. Singh embarked on his remarkable journey with the company on July 4, 2003, and has since been an integral part of the company’s growth and accomplishments.

Throughout his illustrious career, Mr. Singh has consistently demonstrated a remarkable level of expertise, leadership acumen, and an unwavering commitment to his role. He initially joined the company as a Packaging Specialist and swiftly progressed to higher responsibilities due to his exceptional contributions. Mr. Singh’s diligence and dedication have garnered recognition, leading him to his current position as the Head of the Packaging Division.

In his capacity as the Head of the Packaging Division, Mr. Singh plays a pivotal role in shaping the company’s packaging strategies and operations. His profound insights into industry trends, coupled with his exceptional management skills, have been instrumental in steering Tawazon Chemical Company LLC toward new heights of success. He has adeptly navigated complex challenges within the packaging realm, resulting in remarkable advancements and achievements for the company.

Mr. Singh’s astute market understanding, coupled with his ability to identify emerging opportunities and cultivate strategic partnerships, has been pivotal in elevating Tawazon’s influence within the packaging landscape. Under his visionary leadership, the company has introduced innovative packaging solutions, forged robust collaborations, and established a formidable clientele.

Furthermore, Mr. Singh’s exceptional interpersonal finesse and steadfast dedication to ensuring client contentment have been pivotal in nurturing enduring relationships with valued customers. His commitment to tailoring packaging solutions to meet unique client needs has solidified Tawazon’s reputation as a reliable and client-centric partner in the industry.

Throughout his two-decade journey with Tawazon Chemical Company LLC, Mr. Parvinder Singh has consistently exemplified an unparalleled work ethic, an indomitable passion, and an unrelenting pursuit of excellence. His immeasurable contributions have not only propelled the company’s growth but have also ignited inspiration and motivation among his peers.

We extend our heartfelt felicitations to Mr. Parvinder Singh on this remarkable milestone. His twenty years of dedicated service stand as a testament to his unwavering loyalty, profound expertise, and unwavering commitment to Tawazon Chemical Company LLC. We express our profound gratitude for his invaluable contributions and extend our best wishes for continued success as he leads the Packaging Division to new frontiers.

We are delighted to celebrate the remarkable milestone of Mr. Pradeep B.R, who has completed an impressive twenty years of dedicated service at Tawazon Chemical Company LLC. Having joined the company as a sales coordinator on June 13, 2003, Mr. Pradeep has made significant contributions to the company’s growth and success throughout his tenure.
Over the years, Mr. Pradeep has exhibited exceptional professionalism, leadership, and commitment to his work, consistently exceeding expectations. His hard work and dedication have been recognized, and he is designated as Business Manager at Tawazon, overseeing operations in the Middle East, Africa, and India.
As the Business Manager, Mr. Pradeep plays a pivotal role in driving the company’s expansion and managing key relationships in these crucial regions. With his extensive knowledge of the industry, coupled with his exceptional management skills, he has successfully navigated complex business landscapes and achieved remarkable growth for Tawazon.
Mr. Pradeep’s keen understanding of market dynamics, coupled with his ability to identify opportunities and create strategic partnerships, has been instrumental in expanding Tawazon’s presence in the Middle East, Africa, and India. Under his leadership, the company has successfully launched innovative products, forged strong alliances, and established a robust customer base.
Furthermore, Mr. Pradeep’s exceptional interpersonal skills and dedication to customer satisfaction have been key factors in maintaining long-lasting relationships with clients. His commitment to providing tailored solutions and ensuring the highest level of service has solidified Tawazon’s reputation as a trusted partner in the industry.
Throughout his twenty-year journey with Tawazon Chemical Company LLC, Mr. Pradeep has consistently exhibited a strong work ethic, unwavering passion, and a relentless pursuit of excellence. His invaluable contributions have not only propelled the growth of the company but have also inspired and motivated his colleagues.
We extend our heartfelt congratulations to Mr. Pradeep B.R on this remarkable achievement. His two decades of service are a testament to his unwavering loyalty, expertise, and commitment to Tawazon Chemical Company. We express our deep appreciation for his immense contributions and wish him continued success as he leads Tawazon’s operations in the Middle East, Africa, and India.