Based on its current size and growth rate, the company estimates the UAE pest control market is valued at Dhs500m, and is investing a significant portion of its global strategy to meet this demand.
Rentokil UAE General Manager James Nicholson said Rentokil has been studying the market closely for over six years while the government has made enormous strides in regulating the pest control industry, which significantly increased growth potential.
Nicholson said, “There is still apprehension among consumers regarding the safety of chemicals used in residential and commercial properties and the qualifications of individuals carrying out the work. Our goal is to change this perception of pest control and gain trust within the market about the way we do business and the capability of our technicians.”
He said, “Additionally, The UAE is enjoying strong GDP growth despite the general malaise in global economies and this looks set to continue for the foreseeable future. We see a good deal of potential for the pest control segment to outpace general market growth. In terms of pest control, we view the UAE as being in a developing stage so there is a lot of catch up when you compare it with how advanced many other segments are – such as tourism and leisure.”
“The UAE is an ideal market for us to bring our technical know-how built up from over 85 years of global experience,” he added.
Rentokil specialises in both residential and commercial pest control, focusing on pests and applications typical found in the UAE, including cockroaches, bed bugs, bees, rats, flies and birds.
Historically, Rentokil has enjoyed dominant positions across Europe, Asia, North America and Australasia but has had a limited presence across the MENA region.
“Over the past two years we have been pursuing entry options in this part of the world and we see the UAE as the key to success,” Nicholson added.
Rentokil currently operates in the UAE, Turkey, Libya and is set to commence operations in KSA. The company’s initial step into the region was Libya, via a $40m government contract, which was followed up with a Greenfield commercial business. Rentokil then entered into Turkey with an initial acquisition then a further bolt-on, and is now entering the UAE via a mix of Greenfield set-up and acquisition.
Mr Nicholson continued, “We are expecting strong organic growth in each of these markets in the coming year and continue to explore acquisitive and Greenfield entry options in other markets, such as Qatar, Oman, Lebanon and Bahrain, as well as high quality bolt-on opportunities in existing markets.”
“Our focus is on becoming the number one regional player, both in terms of size and capability, a position we enjoy in many of our 60 markets. One of our key points of difference is our global reach and customer base making us perfectly positioned to gain invaluable customer insights combined with unparalleled exposure to a huge variety of pest species and environments,” he said.
“We take this expertise and develop case specific solutions in our global research centre to produce the best available products in the industry. We’re constantly producing innovative products and systems our competitors simply don’t have the resources to do. We also work closely with many auditing and government bodies to devise new standards, which all of our branches implement. We have a strategy to have only wholly or majority owned businesses rather than franchises to ensure quality and brand is controlled by us and never compromised,” he concluded.
Rentokil, a division of Rentokil Initial Group, was formed in 1927 and is the world’s leading supplier of pest control services. Its entry into the UAE market differentiates it from competitors as it is the parent company entering the market – accountable to the company’s global standards of service and quality – and not a franchise.
Tuesday, April 9- 2013 @ 10:15 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.