February 03, 2016
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Manama: India’s Electrosteel Castings, the world’s third largest producer of Ductile Iron (DI) pipes and ancillary products, today inaugurated their new US$6.6 million warehouse in Bahrain, which will be a one stop solution for water projects, for the Bahrain & Middle East markets.
Electrosteel, a multimillion-dollar company listed on the Singapore as well as the Bombay & National Stock Exchanges, is India’s largest producer of DI pipes, and is a global supplier in over 50 countries, with 9 subsidiary companies and distribution centres across the globe; including in the USA, UK, Germany, France, Spain, Italy & the UAE, amongst other countries. The Bahrain facility will act as Electrosteel’s regional hub for sales and distribution activities to the Northern Middle Eastern markets. Electrosteel employs more than ten thousand staff across the Globe.
Electrosteel is the second Indian firm in recent months to expand into Bahrain. In November 2015 Synergies Castings, one of India’s leading aluminium casters and manufacturers of alloy wheels, signed a joint venture with Mumtalakat Holding Company, the investment arm of Bahrain’s sovereign wealth fund, to establish a manufacturing facility in Bahrain.
The company’s inauguration was attended by Mr. Osama Al Arrayed, Undersecretary for Industrial Affair at the Ministry of Industry, Commerce & Tourism; Mr. M.K. Jalan, Director and Piush Lohia, Vice President of Electrosteel; and Mr. Khalid Al Rumaihi, Chief Executive of the Bahrain Economic Development Board (EDB). The EDB provided support and advice to Electrosteel throughout their registration and setting-up process.
Mr. M.K. Jalan of Electrosteel said: “The business of distributing our products is very logistically demanding, and there is a high cost involved with transporting huge volumes of cargo. We chose Bahrain as a centre for our Northern Middle Eastern sales activities because of its strategic location at the heart of this market, and for its strong transport network & infrastructure, that link Bahrain to other countries in the region.
“The laws & regulations of Bahrain are investor friendly, and we are grateful to the Economic Development Board for all their help, which has greatly contributed to our business set up.”
On behalf of the Minister of Industry, Commerce & Tourism, Mr. Osama Al Arrayed, Undersecretary for Industrial Affair at the Ministry said:
“We welcome this development as a valuable addition to the logistics sector in Bahrain and I congratulate the Electrosteel management on their strategic decision to locate in Bahrain at the heart of region’s thriving market.
“Presence of large trading companies provides an impetus to the transportation and logistics sector which is a priority sector of our economy. This sector is witnessing strong growth in recent times and has important linkages with other industries either as a driver or in a support role. The government is focusing on infrastructure development with expansion of the Bahrain International Airport, a larger seaport and state of the art Bahrain Logistics Zone & the upcoming Railway Project that will link with the GCC Rail Network,” the Mr. Al Arrayed added.
Mr. Khalid Al Rumaihi commented: “Electrosteel’s announcement reflects the growing investment by Indian firms in Bahrain, and the efforts being made by these companies to take advantage of the growing demand within the larger region.
“Electrosteel has already supplied pipes, fittings, valves, and other accessories to Bahrain – most notably for Bahrain’s Water Transmission Development Project of the Electricity & Water Authority (EWA), completed in 2015. There is scope for greater collaboration in the future as well as the opportunity for other countries in the region to take advantage of Electrosteel’s offering.
“In return, Bahrain can offer Electrosteel not only low operational costs and 100% ownership on real estate & assets, but also a highly educated and bilingual local workforce, which will be invaluable as Electrosteel continues to expand across the region.”
India and Bahrain enjoy close economic relations, with trade between the two nations reaching $720 million USD, in 2014. More than 350,000 Indian nationals are currently living in Bahrain.
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Notes to editors
About Bahrain EDB
The Bahrain EDB is a dynamic public agency with an overall responsibility for attracting inward investment into Bahrain, and is focusing on target economic sectors in which the Kingdom offers significant strengths.
Key areas of focus include manufacturing, ICT, tourism, and logistics and transport services as well as other sub-sectors. The Financial Services sector in Bahrain is particularly strong and the EDB supports in the continuing growth of the banking industry and key sub-sectors, including Islamic Finance, Asset Management, Insurance and Re-Insurance.
For more information on the Bahrain EDB visit www.bahrainedb.com; for information about Bahrain visit www.bahrain.com
Contact:
May Taher, Bahrain Economic Development Board
Tel: +973 17 589 972
Email: internationalmedia@bahrainedb.com
