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Governments should exit business: Swraj Paul

Caparo Middle East launches electrical conduits and fittings manufacturing JV in Dammam, Saudi Arabia

Governments globally should reduce their role in business and let the industrialists and businessmen take care of the businesses, British-Indian tycoon Swraj Paul, a global name in business, said after inaugurating his company’s manufacturing plant in Dammam last Saturday.

“The global economy is expanding. This brings with it lots of opportunities for people. It is the responsibility of the industrialists to ensure they do their part and the government to unleash the potential,” Paul, Founder of Caparo Group, said, when asked on the overall global economic growth.

Global growth is projected to stay at 3.1 percent in 2024 and rise to 3.2 percent in 2025, according to the International Monetary Fund, which said this month, elevated central bank rates to fight inflation and a withdrawal of fiscal support amid high debt weigh on economic activity. The forecast for global growth five years from now—at 3.1 percent—is at its lowest in decades. Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, IMF said.

“Many governments made economic mess by wrongly interfering with the economy and by not letting the industrialists do their work. The governments worldwide should let the businessmen and industrialists do their part to build industries, create employment so that the economies can grow further and it benefits everyone,” he said.

Caparo Middle East, a leading manufacturer and distributor of industrial and electrical products, inaugurated its first investment in Saudi Arabia, in a fully-integrated state-of-the-art manufacturing plant in Dammam, Al Khobar region of Saudi Arabia.

The manufacturing plant is a joint venture, Caparo Tabalsa Arabia Factory Co. LLC, between Caparo ME and Eng Sinan Ali Ahmed Bukamseen, a reputed Saudi Arabian investor, developed with an investment of SR25 million. The joint venture is also expected to create about a hundred jobs, of which forty have been filled already.

Caparo ME’s specialisations include electrical metallic conduits and fittings complying with American UL standards. Located in the 2nd Industrial City, Dammam, KSA, the 30,000 square feet factory is built on a 50,000 square feet plot of land that will cater to the growing needs for these products in the Middle East and Africa regions. At full capacity, the factory will produce about half a million electrical conduits and related fittings per month.

The market size for electrical conduit products was valued at US$10 billion in 2023 and will reach over US$19.9 billion by 2032, propelled by increasing concerns related to electrical supply faults, fire hazards, health risks, and operational safety, according to Global Market Insights (GMI). Of this, the market size for metal electrical conduit was worth around US$3.1 billion in 2023 and is anticipated to reach over US$5.6 billion by 2032 driven by the growing concerns around electrical supply issues, fire dangers, health hazards, and operational safety.

Currently Caparo ME distributes these products by importing them from factories in managed facilities from China & India. The new manufacturing facility in Dammam will help reduce imports and assist Saudi Arabia to achieve self-sufficiency and become an exporter of industrial and electrical metallic conduits and fittings.

It is the first step by Caparo ME in Saudi Arabia. This expansion will contribute to the Saudi economy and increase prospects for further investments by Caparo ME in the future. The new plant will help Caparo ME revenues grow through manufacturing in KSA rather than importing product, not only increasing market share in KSA, but also in the GCC, the wider Middle East and Africa.

Caparo ME is part of the global association of Caparo businesses founded Paul. “This new industrial venture reflects Caparo’s long-term commitment to the Saudi Arabian economy, as it evolves and diversifies to become a major global economic powerhouse. We are very happy and proud to be able to inaugurate this investment at this time. This manufacturing plant will play a vital role not only in eliminating imports of industrial and electrical metallic conduits and fittings complying with American UL standards, but also help Saudi Arabia to export these products to the GCC countries, Middle East and African markets. In this way, we are also aligning ourselves with the economic diversification plan under the Saudi Arabian Vision 2030. Following the Saudi Arabian Government’s vision to encourage FDI into manufacturing and the industrial sector, we are also supporting the Saudisation drive by creating employment, paying taxes and levies, generating exports and reducing dependency on imports,” he said.

Anjli Paul, Director of Caparo ME, commented, “Following the inauguration of the joint venture manufacturing plant, we will become a dominant force to be reckoned with in the region. Aligning with the vision of the Saudi Arabian Government, we will promote local manufacturing and local human talent, and look forward to increasing Caparo’s business presence in KSA.”

Caparo ME has been operating independently from Dubai and serving the GCC market since 2005. Caparo ME’s product lines consist of electrical conduits, fittings and cable connectors under its Caparo and Simplex Cables brands, and Caparo Energy industrial batteries. This is the first venture into KSA with investment in manufacturing.