Lavajet, an Italy-based company, part of Batco Group and a major player in the Middle East’s solid waste management services, is expanding its operations in the region. As part of the expansion plan, the company is diversifying into commercial segment, while strengthening its base in its core area of public works. The company is also actively participating in the several tenders called for in the UAE as part of its growth plan. For Camille Ghantous, UAE Area Manager at Lavajet, it’s more important to sustain and expand without compromising on bid pricing and quality standards. Expounding on the company’s future plans, Ghantous said: “We have started branching out to commercial waste management for the private sector. However, we’re engaged in waste management for governments. Now, we are entering in to private commercial space. Trial run is on and we’re receiving encouraging response from diverse network of clients. We’re entering into commercial waste management and partnering with other players also;Since we’re in the construction sector, we’re able to give them good service.”

Founded in Italy in 1991, Lavajet is an international provider of environmental waste management services and a recognized leader in its domain with a proven record for achieving the highest standards of excellence. The company delivers innovative and environmentally responsible solutions to governments, industries and business organisations. “Also strengthening ourselves in the private business space, we have started Lavajet Dubai for commercial activity, not for public works. We also eye balling other emirate for commercial services. This is the current position of Lavajet for the UAE.” Employing more than 3000 including engineers, administrators, technicians and a highly trained labour pool, Lavajet is investing in advanced training programs for its employees. “Our company first time did a land fill contract in Lebanon through a JV with an Italian company. We’re providing waste management services including street cleaning in Abu Dhabi.

We are actively participating in tenders in the UAE. There’s combined ability to operate gives us strength. New technology applications are being developed for highway maintenance and we’re very keen on this. We are positioning ourselves in terms of technical, skill, technology aspects,” adds Ghantous.

Considering the current market dynamics in the UAE and other parts of the region, Lavajet is seeking out more public works. Ghantous believes in cost effective solutions without comprising on the quality and revenues of the company. For this civil engineer, who graduated in 1983 from an American university and joined Lavajet in 2007, sourcing and segregation of material, and transporting it in cost effective way requires lot of expertise and technology applications. He strongly believes that being construction company is an added advantage for dealing with waste management services including street cleaning. Ghantous further said: “There are lot of synergies between construction and waste management activities especially equipment, trucks, labour force, etc. So it gives added value when we provide waste management services being a construction company. This is ideal for contracts if there’re build, operate and transfer (BOT) model projects. We see more business potential in land fill space. Since, 2007, Lavajet has been focusing on public works as they consider safe for investments in fleet and other assets. Public works contracts are considered much safer from point of view from shareholders and bankers as well. This is why public works are a key target for Lavajet. We are also very comfortable with public works.”

The company is also banking on ‘Nadafa’ norms in Abu Dhabi for spreading its business activities. As part of Nadafa, Abu Dhabi aims to divert 90 percent of the waste from landfills by 2018. Abu Dhabi is planning to have dump zero waste in landfills in the future as the emirate which annually generates over ten million tonnes of waste and has already lost 1,800 hectares of land to landfills so far. Lavajet is playing a viral role in waste management as it focuses on applications that support the Abu Dhabi’s action plan on reduce, reuse and recycle as the capital city is aiming at zero waste to landfills by introducing the latest technologies. “In Abu Dhabi, Nadafa rules and regulations have brought into the formula on waste and recycling activity. Now, all the commercial activities industrial activities should comply with new Nadafa rules,” he said. “Whenever they (commercial organisations) renew yearly licenses or comply with the request of organizing their waste, reducing waste, reduce recycle make it as much as possible. This is good help for the industry.

Though, initially it will be a tough task, but in the medium to long-term it will be a good proposition for the industry. Abu Dhabi government institution will also extend its guidance to the private players and it will force all private players for better compliance.”

Lavajet sees more demand coming from commercial side as the biggest demand is on street cleaning from construction companies, contractors, etc. “We have to buy new equipment to satisfy new demand for street cleaning. Nadafa, quality control norms, municipalities, contractors doing major public works pushing for cleanliness on their sites. This is going to create more demand in the days to come,” says Ghantous. “Street cleaning is specialized job and requires modern equipment. Our expertise in waste management comes in handy in street cleaning. Because, if you have modern equipment and don’t have experience and expertise, then it will not serve the purpose regardless of whatever latest equipment you have. It requires regular maintenance, preventive maintenance. We’re equipped with more sweepers of several sizes. We are positioned to cater to the demand from this segment. We have mechanical street cleaning equipment, but manual cleaning activity is also picking. These are normally part of public works. Street cleaning gets more attention during public holidays, during Ramadan. People go out for a walk. There’s a campaign in Abu Dhabi to educate people on littering, waste management,” explains Ghantous.

Appreciating the UAE people on their awareness about hygiene and cleanliness, he said: “We asked our Italian experts on how much time it’s taken for making public awareness into efficiency. And the answer was 25 years. Whereas, it’s faster in the UAE. Laws are good and people abide bylaws. In some other countries, there’s no law abiding attitude among the people, so it’s difficult t maintain cleanliness on streets in those countries. In the UAE, it’s faster than anticipated.” Like any other business organization, sustaining and enhancing the customer base in street cleaning is important for Lavajet as well. 

“We have experienced two tasks of street cleaning in the UAE. In desert, there’s phenomenon on travelling sand dune. There’s difference between accumulated sand on roads and accumulated sand dunes on roads itself on far because of winds. This is danger for drivers and travellers as it causes more accidents. Sand dune on the roads is risky for vehicle drivers. Sand dune on roads makes it slippery and this is the root cause for accidents. Some solutions including plantations have been charted out. By creating plantations next to bushes, we can ensure roads more safer. Concrete barriers preventing sand onto roads are not good, guard rails are better as they allow sand movement thru without accumulation. We have two machines to remove sand on the roads. These machines are equipped with conveyor belt. Some parts, where sand dunes accumulated long time back, it becomes solidified. You need to take out it first before cleaning sand on the roads. You need special equipment for this. Safety team is also required,” adds Ghantous.Market competition is everywhere and so is the street cleaning. Lavajet sees increasing competition in the street cleaning segment as more and more awareness in the region is spreading among thepeople and governments.

“Competition is healthy as it makes us improve. Some competitors offer services lower than cost until they reach break-even point. So this is natural phenomenon. In short-term, they might have business. But, still you need to generate revenues to bridge the gap between cost and income. Once balance sheet is losing strength, banks will also stop lending. Marketing is also more important as sustainability, profitability are major pillars for any organization,” adds Ghantous. Saying that the company doesn’t prefer the position where it stands in terms of ranking, he further revealed that “the market share doesn’t drive us. What will drive us are sustainability and services. Clients would come back. We have instances that the clients who left us have come back to us after realizing the value of our service. The only reason is our descent service. You can’t operate on losses just to keep the market share. Sometimes, competition is fierce, we lose some bids. We always watch our competitors, but we’re not disturbed if we lose any bid. We focus on our services to sustain quality otherwise we have to downgrade our caliber. If that happens, we can’t pay good salaries, problems with banks and shareholders also. For medium to long –term lowprice under bidding is not good.”

“Hygiene standards. Abu Dhabi 2030 wants to become number one city in the world hygiene and cleanliness standards. The city is pushing higher standards every year, so we’re also improving ourselves. We’re investing in training as well. In Dubai also, His Highness Sheikh Mohammed wants the city to be number one. So we understand that raising the standards will also raise standards in every aspect. Don’t litter, leave it your car, while you’re driving and then drop it in the dust bin,” advises Ghantous.