Riyadh Cables Group Company Profile

Background

Overview

Established in 1984, Riyadh Cables Group Company (RCGC) has grown to become the largest cable manufacturer in the Middle East and North Africa (MENA) region. The company operates state-of-the-art manufacturing facilities across Saudi Arabia, the United Arab Emirates, and Iraq, producing a comprehensive range of wire and cable products.

Mission and Vision

Mission: To continuously grow by providing superior services and solutions for products used worldwide in sectors such as energy, construction, oil & gas, renewables, industrial, defense, rail, transport, mining, and other specialty industries. This is achieved through significant investments in research and development, quality systems, and human resources.

Vision: To be a major manufacturer in a broad range of electrical cables, including wires, low, medium, high, and extra-high voltage cables, overhead line conductors, instrumentation & control cables, renewable energy cables, fiber optic, and telephone cables.

Industry Significance

RCGC holds a dominant position in the regional cable manufacturing industry, with an estimated market share of 32% in Saudi Arabia and 22% in the UAE. The company's extensive product portfolio and manufacturing capabilities have made it a key supplier for major infrastructure projects, contributing significantly to the development of the region's energy and construction sectors.

Key Strategic Focus

Core Objectives

Market Leadership: Maintain and enhance its position as the leading cable manufacturer in the MENA region.

Innovation: Invest in research and development to introduce advanced cable solutions that meet evolving industry standards.

Sustainability: Implement environmentally friendly practices, including recycling materials and reducing carbon emissions.

Areas of Specialization

Product Range: Manufacture of wires, low, medium, high, and extra-high voltage cables, overhead line conductors, instrumentation & control cables, renewable energy cables, fiber optic, and telephone cables.

Manufacturing Facilities: Operate over 1.5 million square meters of state-of-the-art manufacturing facilities in Saudi Arabia, the UAE, and Iraq.

Key Technologies Utilized

Advanced Manufacturing: Utilize cutting-edge technology in cable production to ensure high-quality and reliable products.

Research and Development: Focus on continuous product improvement and innovation to meet market demands.

Primary Markets Targeted

Regional Markets: Saudi Arabia, UAE, and Iraq.

International Markets: Expand presence in 34+ countries and territories.

Financials and Funding

Funding History

RCGC has undergone significant expansion and modernization, supported by substantial investments in manufacturing facilities and research and development. In 2022, the company announced an initial public offering (IPO) on the Saudi Stock Exchange (Tadawul), offering 22% of its share capital for public subscription.

Recent Funding Rounds

IPO Details: The IPO was approved by the Capital Market Authority, marking a new phase in the company's growth journey.

Notable Investors

The IPO attracted a diverse range of investors, including institutional and retail participants, reflecting strong confidence in RCGC's market position and growth prospects.

Utilization of Capital

Proceeds from the IPO are intended to support the company's expansion plans, enhance manufacturing capabilities, and invest in research and development to drive innovation and meet increasing market demand.

Pipeline Development

Key Pipeline Candidates

RCGC is actively involved in several mega projects, supplying cables for major infrastructure developments in the region. The company is also expanding its product offerings to include cable accessories and turnkey projects, diversifying its revenue streams.

Stages of Development

Product Expansion: Introduction of new product lines, including cable accessories and turnkey solutions.

Geographical Expansion: Strengthening presence in existing markets and exploring new international markets.

Target Conditions

The company focuses on high-demand sectors such as energy, construction, oil & gas, renewables, and industrial applications.

Anticipated Milestones

Short-Term: Completion of ongoing mega projects and successful integration of new product lines.

Long-Term: Establishing a stronger foothold in international markets and achieving sustainable growth.

Technological Platform and Innovation

Proprietary Technologies

Manufacturing Excellence: State-of-the-art facilities for producing a wide range of cables.

Recycling Facilities: In-house facilities for recycling metals, polymers, and cable drums, contributing to environmental sustainability.

Significant Scientific Methods

Research and Development: Continuous investment in R&D to develop innovative cable solutions.

Quality Control: Rigorous testing and quality assurance processes to ensure product reliability.

Leadership Team

Executive Profiles

Borjan Sehovac: Chief Executive Officer (CEO)

Professional Background: Extensive experience in the cable manufacturing industry, leading RCGC through significant growth and expansion.

Contributions: Instrumental in the company's IPO and strategic initiatives to enhance market presence.

Khalid Abdulrahman Al-Gwaiz: Chairman of the Board of Directors

Professional Background: Over 40 years of experience in various industries, including manufacturing and business sectors.

Contributions: Provides strategic direction and governance, overseeing the company's growth and development.

Leadership Changes

In 2022, RCGC appointed a new CEO, Borjan Sehovac, who has been pivotal in steering the company through its IPO and expansion plans.

Competitor Profile

Market Insights and Dynamics

The cable manufacturing industry in the MENA region is experiencing significant growth, driven by large-scale infrastructure projects and increasing demand for energy and communication solutions. RCGC's dominant market share positions it favorably to capitalize on these trends.

Competitor Analysis

Al Fanar Group: A Saudi electrical manufacturing company producing cables and offering EPC solutions.

Bahra Electric: Produces wires, low, medium, and high voltage power cables, overhead lines, control cables, and instrumentation cables.

Ducab: A UAE-based company manufacturing a wide range of cables and related products.

Strategic Collaborations and Partnerships

RCGC has established strategic partnerships with various stakeholders, including suppliers and customers, to enhance its product offerings and market reach.

Operational Insights

Strategic Considerations

RCGC's extensive manufacturing footprint, high local content, vertical integration, and diverse product portfolio provide a competitive edge in the market. The company's focus on quality, innovation, and customer-centric approaches further strengthens its market position.

Strategic Opportunities and Future Directions

Roadmap and Expansion

Product Diversification: Expand into cable accessories and turnkey projects.

Geographical Expansion: Increase presence in international markets.

Sustainability Initiatives: Enhance recycling and environmental sustainability practices.

Future Objectives

RCGC aims to leverage its strengths to achieve sustainable growth, enhance market share, and contribute to the development of the region's infrastructure and energy sectors.