Logo of Rayan Advanced Industrial Co.
Rayan Advanced Industrial Co. said in its IPO prospectus that it aims to be the first provider of complete solutions in flexible packaging industries in Saudi Arabia and the Gulf region. This will be attained by Rayan’s top-notch manufacturing techniques to provide distinguished and high-quality products.
Rayan produces, sells, and markets plastic products used in specialized packaging that relies on the different applications of high-and-low-density polyethylene film products.
The company’s strategy relies on keeping pace with modern technologies related to flexible packaging products, whether in the film products or polyethylene film products (back sheets) it produces. Rayan strives to maintain its good reputation and enhance its regional and global presence, as it has been able to reach clients from different countries. Rayan’s strategy revolves around:
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Strategy of Rayan |
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Goals |
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- Expand production capacity to leverage high demand for products - Reach the largest segment of customers by effectively marketing the company’s brand - Be committed to continuous improvement and development in the long term - Continue to keep abreast of relevant technical developments to increase operational efficiency and maintain the highest quality levels of products - Develop the company’s employees and attract appropriate well-experienced competencies as well as fresh graduates to contribute to advancing the development and progress in the industrial field across the Kingdom |
According to the IPO prospectus, Rayan also highlighted several potentials that support it to continue its business and grant it competitive advantages, compared to local peers and target markets.
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Main Strengths and Competitive Advantages of Rayan |
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Details |
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Excellence of Technology Deployed |
Rayan has advanced technologies that are available in a very limited way at most of local and regional factories. This helped the company manufacture its products with high production capacity, strict quality control, and automation of manufacturing and production process. Therefore, Rayan can reduce the number of labor force required from end-to-end without human intervention. |
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Production Capacity |
Rayan has a large production capacity in advanced printing using European techniques. It seeks to boost this production capacity in the coming years. |
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Extensive Experience of Managerial Team |
Since its establishment, Rayan’s management team has local and international expertise, which facilitates deep understanding of the industry, and supports the company’s interest in terms of local and regional excellence. |
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Strategic Relationships with Clients |
Rayan has maintained its relationships with clients for long. It has manufactured products for major supermarkets, which are well-known locally and internationally (packaging and plastics products in the names of such clients), in the field of foods (packaging for used bags), andin the field of diapers and sanitary napkins (specialized plastic products), etc. |
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Exporting to Neighboring and Regional Countries |
Rayan was able to have a customer base in many countries across the GCC and MENA regions, including the UAE, Kuwait, Jordan, Egypt, Algeria and Tunisia. This was backed by the high quality of the company’s products as well as pre- and after-sale services. |
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Relatively Low Production Cost |
Rayan has gained the trust of suppliers over the years. Accordingly, it obtained competitive prices for the required raw products. Thus, the overall cost of production granted Rayan another advantage in outperforming local and foreign competitors. |
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CEO and Managing Director, Sami Joudeh, earlier said that Rayan reported a net profit of SAR 14.5 million in the first half of 2022. The company’s revenues are expected to surpass SAR 220 million in 2022, and near SAR 255 million in 2023.
Last October, the Capital Market Authority (CMA) approved Rayan’s application to offer two million shares, or 20% of its share capital, on Nomu-Parallel Market. Aldukheil Financial Group, the financial advisor, also announced that Rayan’s offering will close tomorrow, Nov. 24.
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