Water bar maker Tana Industries Ltd. (colloquially known as Tami 4) has opened its first store in China, in Shenzhen, a city with six million residents and a large middle and upper class.
Tana Industries CEO Dan Taragan said market research conducted by the company in China indicated heavy demand for high-quality water among these groups. The figure is surprising, given that China is an international manufacturing center that exports water purifiers and water bars whose average price is a third of Tami4’s products.
Tami4 invested NIS 1 million in the 100-sq.m. store, which the company expects will sell products both wholesale and retail. The company predicts NIS 4 million in sales this year and double this figure in 2008.
Taragan said the company had NIS 167 million in sales in 2006. “The company’s turnover rose 50% in the past three years. With the rise in awareness about health in general and the environment in particular, our products have growing potential in the household market. We predict very substantial growth in the market as well as a greater market share for us.”
Tami4 has operated in Europe for several years, and is now planning to expand its activities there, especially in the UK through Tana Water UK Ltd. The company had NIS 27 million in export to Europe in 2006 and set a target of NIS 35 million for 2007. The company has also begun activity in the US, although not through distributors, and set a sales target of NIS 21 million there for this year.
Kibbutz Halamed Heh owns 75% of Tana Industries, and Kazoo Holdings (1998) Ltd. owns the rest.
Published by Globes [online], Israel business news - www.globes.co.il - on February 26, 2007
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