Industry leader reinforces brand primacy with local production facilities in Saudi Arabia
GROHE, the leading global brand for complete bathroom solutions, plumbing fixtures and kitchen fittings, is making rapid strides in the expanding IMEA geography (The Indian subcontinent, Middle East, Turkiye and Africa), a vast geographical expanse.
Now with its own indigenous manufacturing plant in partnership with Zamil Plastics Industries, in Dammam, the capital of Saudi Arabia’s oil rich Eastern Province, and a Regional Distribution Centre in Jebel Ali, Dubai, UAE, GROHE has upped the ante, adding a new dimension to its operations in the region, adding production capacity and bringing new efficiencies to its Supply Chain process.
LogisticsGulf.com, recently spoke exclusively and exhaustively to Stefan Schmied–Leader, IMEA, LIXIL International, (of which the GROHE Group is a subsidiary), in a wide-ranging interview to get the lowdown on the company’s business forays in the region, its objectives, growth, expansion, new developments and its vision for the future. The following are the transcripts of that interview.
LogisticsGulf.com (LG): Recently, GROHE debuted first Saudi Arabia-made sanitary products. Tell us more about this landmark development and about your expansion spree in KSA.
Stefan Schmied (SS): With the establishment of manufacturing facilities in Saudi Arabia, we are enhancing local production capabilities and contributing to the growth of a thriving manufacturing sector. This initiative aligns with our commitment to supporting Saudi Arabia’s Vision 2030, focusing on economic diversification and sustainability.
Our efforts will create job opportunities for Saudi nationals, fostering local employment and advancing skills development. By hiring and training local talent, we are actively investing in the future workforce of the Kingdom.
LG: Elaborate on your new manufacturing facility in Dammam in the Kingdom’s Eastern Province?
SS: Our new manufacturing facility at Zamil Plastic Industries Co. in Dammam, located in the Kingdom’s Eastern Province, spans over 26,000sqm and employs more than 200 local professionals, reinforcing our commitment to the region.
This state-of-the-art facility, equipped with GROHE’s advanced German technology, enhances operational efficiencies, accelerates speed-to-market, and elevates the customer experience. It has also successfully dispatched its first shipment, marking the beginning of a new chapter for local production.
LIXIL’s regional expansion plans for GROHE align closely with Saudi Vision 2030, which aims to achieve economic diversification through strategic investments in construction, logistics, manufacturing, and other sectors. The production of exceptional concealed cisterns within the Kingdom further strengthens national pride by showcasing local talent and craftsmanship.
Beyond job creation, the facility promotes skills development and sustainable growth, reflecting our long-term investment in Saudi Arabia’s future and aligning with the transformative goals of Vision 2030.
LG: Describe your collaboration with Saudi Arabia’s Zamil Plastic Industries Co?
SS: The partnership between GROHE and Zamil Plastic Industries was formed through a shared vision of advancing local manufacturing capabilities and bringing innovative solutions to the Saudi market.
The Public Investment Funds (PIF) played an important role in linking our two companies, leveraging GROHE’s German technology and Zamil Plastic Industries’ local expertise to contribute to Saudi Arabia’s industrial growth. Our focus on sustainable manufacturing practices will align with Saudi Arabia’s commitment to environmental sustainability under Vision 2030. This includes efficient use of resources and minimizing environmental impact.
LG: What, in your opinion, sets GROHE apart? What are your core brand strengths and how are you leveraging these capabilities to increase your market share in the region?
SS: GROHE brand has always been committed to creating exceptional experiences for its consumers and to delivering the best with its engineering, innovation and design activities which strengthens the customers’ confidence in the brand.
We are passionate about introducing more sustainability in KSA and the wider GCC region through our products that work on conserving water, energy, and other natural resources across the value chain, from procurement through production, distribution, end use, and product disposal.
LG: How significant is the IMEA Region for GROHE? Furthermore, within IMEA, what are among the top three performing countries?
SS: As mentioned before, the IMEA region is strategic for GROHE. Specifically, the sanitary fittings market in the region is growing rapidly, driven by developments in tourism, hospitality, healthcare, education and other public infrastructure projects. For example, the sanitaryware market in the UAE is projected to grow at a CAGR (compounded annual growth rate) of 7% from 2021 to 2028. This presents a significant opportunity for us.
We understand that people want better homes and at GROHE, part of LIXIL, we want to make this a reality for everyone, everywhere. This requires a deep understanding of consumers–how they live, what their needs and aspirations are, and what they expect from their living spaces. We are expanding our presence in this market to ensure that we deliver the latest designs to match the evolving needs of each end-user segment.
LG: Expand on the GROHE CSR (Corporate Social Responsibilities) strategies and Sustainability initiatives.
SS: In line with the UN sustainable development goals, LIXIL focuses on three main corporate responsibility pillars-global sanitization and hygiene, water conservation and environmental sustainability, and diversity and inclusion. By 2025, we are committed to improving the livelihood of 100mn people through sanitation and hygiene initiatives.
We are also committed to achieving net-zero carbon emissions by 2050, by preserving water and natural resources in operations, and through innovative housing and lifestyle solutions for future generations to become a leading company in environmental sustainability. We see significant opportunities to make greater contributions to climate change mitigation through our business operations, products, and services.
The GROHE brand, as part of LIXIL, works closely with architects and designers in the GCC to ensure that we deliver our extensive range of solutions when required.
LG: How important are the logistics and supply chain operations for the GROHE?
SS: Logistics and supply chain operations are essential to GROHE, ensuring that our products reach consumers efficiently, regardless of their location. To support growth in key markets, we have built a robust logistics and distribution network across the region.
GROHE is proud to be among the few brands in the region utilizing a local distribution centre. Our Regional Distribution Centre in Jebel Ali began operations in 2022 and serves as a strategic hub, optimizing operations and reducing lead times between European and Asian production facilities. This centre plays a pivotal role in driving the business’s continued growth across the region in the region.
LG: How did GROHE fare thus far in 2024 and what is the outlook for the remainder of the year going forward?
SS: GROHE brand continues to grow its presence across the IMEA region. The global sanitaryware market is moving towards smart tech, which offers comfort, hygiene and convenience. As the global demand for commercial and residential real estate grows, along with government-led efforts to improve hygiene and sanitation standards, there are ample growth opportunities for the sanitaryware market.
LG: What are your expansion plans for the region and beyond?
SS: We work closely with all our regional partners to implement water-saving technologies across key residential and commercial projects. The GCC region has the scarcest water availability in the world. The UN warns that the region is not on track to achieve ‘water security’ as set out in Vision 2030.
There is still time to work towards solving this challenge. However, it requires putting real policies into effect that safeguard water security at a national level. LIXIL has taken a stand against water scarcity with its brand SATO developing safe and affordable hygiene solutions, which has impacted the lives of over 35mn people in 44 countries.
LG: What are the opportunities, challenges and competition for GROHE going forward?
SS: The GCC is on the cusp of renewed growth as a result of economic diversification. This has accelerated activity for several key infrastructure projects to fulfill their economic agendas in the next 10 years. These investments are creating a new wave of urbanization driven by modern technology and eco-conscious construction and building design.
There is tremendous opportunity for innovation in key business sectors, including infrastructure to feed this demand and generate employment. We foresee economic acceleration in many key GCC markets will drive a positive business impact on the regional Architects, Design, and Engineers (AEC) industry.
LG: What is your wider vision for GROHE for the short- and long-term futures?
SS: We see tremendous opportunity in water-saving technologies in mega projects across the region. As a global leader in bathroom solutions and kitchen fittings, the GROHE brand focuses on innovations to reduce water leakage and consumption.
We are collaborating with regional stakeholders to develop these at scale across several key infrastructure projects and are on our way to achieving water security. GROHE has always been committed to creating exceptional experiences for its consumers and to delivering the best with its engineering, innovation and design activities to strengthen customer confidence in the brand.
We are passionate about expanding sustainability in the wider GCC region, as our products work on conserving water, energy, and other natural resources across the value chain from procurement through production, distribution, end-use, and product disposal.
BOXOUT
PROFILE:
Stefan Schmied
Leader, LIXIL IMEA
Stefan Schmied is currently the Leader of LIXIL IMEA region. The IMEA region entails India & Subcontinent, the Middle East including Turkiye, and the entire African continent.
Stefan is responsible for accelerating the growth and enhancing the long-term sales performance of the GROHE brand through cross-regional collaboration and strategic innovation.
Stefan has over 20 years of industry experience, during which he has led key strategic initiatives, expanded channels, built brands, and managed sales operations in the retail, wholesale, and project business for global companies.
Stefan previously took over the project business channel at GROHE, transforming it into an independent Business Unit which became a key growth driver for LIXIL EMENA.
Stefan holds a degree in Business administration from the University of Bern, Switzerland.
