Pharma World Holdings to establish first 3rd party logistics provider in the GCC

Dubai, United Arab Emirates, 15 January 2008: Newly formed pan-Gulf pharmaceutical storage and distribution firm, Pharma World Holdings, is setting up a state of the art facility within the United Arab Emirates, the first ever 3PL pharmaceutical provider in the region, to capitalize on an industry estimated to be worth around $3 billion per annum.

The newly established firm brings a track record of expertise to the region being a 50/50 venture between UAE based Ithmar Capital Fund I and Banaja International Group.

Banaja International Group is the affiliate responsible for the international associations and investments across the MENA (Middle East and North Africa) region including those ties with the Saudi Import Company, Banaja, one of the leading Saudi based distributors in the Middle East with a heritage of over 60 years in the healthcare market.

The company represents some of the most well-known multinational pharmaceutical and healthcare companies, and has successfully achieved breakthrough objectives since its inception including the attainment of a class 'A' Certification for its Distribution Resource Planning (DRP) system; the only company in the Middle East to achieve such certification.

Ithmar Capital is a UAE-based regional private equity specialist, which targets exceptional growth capital and buyout opportunities throughout the GCC region and overseas, provided the GCC region represents a strategic market for the overseas companies. 

Ithmar Capital Fund I, a US $70 million fully-invested fund, operates in a select number of firms in some of the most attractive sectors in the region.

Pharma World Holdings provide a one-stop 3PL offering for international as well as local manufacturers. Their purpose designed IT technology makes them capable of accepting orders from manufacturers customers directly, process and ship received orders from their warehousing facility, invoice customers on behalf of the manufacturer and advise manufacturers when to order replacement product while giving customers the option of letting them issue POs on their behalf.

Additionally, the company can handle the return inventory levels and provide outsourcing support for all distribution associated requirements.

Maher Kheder, Business Development Group Director, Pharma World Holdings says: “Distribution for international companies within the GCC has been notoriously time and money consuming in the past. The traditional model of distribution meant foreign manufacturers would supply products through distributors who place and receive orders directly from principal manufacturing facilities.

“This model lacks flexibility for principals and means that they need to find a distributor with excellent regional knowledge to optimize the process.”

“The Pharma World Holdings system provides an integrative approach that better links principals with distributors, removing layers of inefficiency and improving service quality.”

Already in negotiation with some of the world’s leading pharmaceutical companies, Kheder says that PWH, being the first to establish 3PL in the region, is likely to take up the lion’s share of international business in the region within the coming years.

Pharma World Holdings’ new Dubai-based distribution hub consists of 6000 square metres of hi-tech warehousing and will be fully operational by mid 2008.

About Pharma World Holdings
UAE based Ithmar Capital, Fund I and Banaja International Group partnered to form Pharma World Holdings and are currently establishing warehousing facilities at JAFZA in the UAE. Ithmar Capital, Fund I and Banaja International Group each own 50% of Pharma World Holdings.

The company benefits from Banaja’s 60 years of heritage in KSA. They have extensive experience in warehouse management through a portfolio of over 14 warehouses. Additionally the new venture benefits from vast Ithmar Capital, Fund I experience in UAE. With this expertise and experience on tap, Pharma World Holdings is now spreading its services to the GCC and Middle East.

Through Pharma World Holdings’ unique, one-stop offering, they centralize logistics providing storage, inventory management as well as purchasing and re-invoicing to the distributor. Overall, Pharma World Holdings is able to store pharmaceutical within the correct environment and their business model provides an integrative approach that better links principals with distributors, removing layers or inefficiency and improving service quality and costs.

For more information, please contact

Robyn Creer
Buchanan Middle East
T +971 4 369 8558
Mob: +971 50 395 1995
E: robyn.creer@buchananme.com

Emilie Loivet
Buchanan Middle East
T +971 4 369 8565
Mob: +971 50 8819313
E: emilie.loivet@buchananme.com