Oman Fisheries plans separate subsidiary, to outsource major activities

Muscat: Oman Fisheries Company, which is 24 per cent owned by the government, plans to start a new company exclusively for fishing. There are also plans to outsource several activities to reduce cost of operation and to enhance efficiency.
Further, plans are afoot to convert the parent company into a holding firm structure, with separate subsidiaries for carrying out different activities.
“Right now, we have created the first subsidiary company, which is Al Ameen Stores and Refrigeration LLC,” Said Al Rawahi, general manager of Oman Fisheries Company, told journalists.
The company was established with a capital expenditure of OMR2.57 million and the unit has won storage tenders, which helped to achieve return on investment within a short span of time.
In its new plan, Oman Fisheries will contract with small and medium enterprises in four major activities – running five plants and 16 coastal fishing vessels, managing 10 shops selling fish and supplying 41,000 tonnes of fish to the company’s own and leased plants.
“We have 16 fishing boats now. Our ambition is to form a new company for exclusively carrying out fishing activities. It will speed up our expansion programme,” explained Al Rawahi.
Al Rawahi said that the company also plans to form a separate subsidiary for agricultural products.
He said the company, which exports to 40 countries across the world, has six processing units, including five relatively small units for semi-processing and one large unit for processing. These units have a combined processing capacity of over 270 tonnes, while the storage capacity is around 1,000 tonnes. The freezing capacity of five plants has increased from 63 tonnes to 237 tonnes in the last five years.
The Oman Fisheries Company (OFC) chief said that his company has supported nine ailing firms engaged in fishing activities and some of these were offered for sale to get out of the crisis. After OFC supported these units, most of these firms have been able to stand their own feet and achieve growth.
The company’s local sales have increased to 4,110 tonnes in 2014-2015 financial year, from 1,000 tonnes five years ago, which contributed to food security.
Oman Fisheries, which distributed 207 per cent dividend since inception, has achieved growth in both capital and assets, which increased to OMR17 million.
“In the light of the steady growth of the company and the significant increase in the volume of its investments and its fixed assets, which doubled over the last five years, there was a slight loss of less than 5 per cent, despite a rise in sales of the company,” he added. The company has a short-term plan for the next three years for overcoming the challenges and to be able to react quickly to changes.
Al Rawahi noted that although the company dispensed with trawlers service, its purchases from Omani fishermen associated with it increased from 11,000 tonnes to around 38,000 tonnes in the financial year ending March 2015, indicating a compounded annual growth rate of 23 per cent. Thanks to purchase from fishermen, the company’s sales have grown to 35,000 tonnes now compared to 10,000 tonnes five years ago, with a compounded annual growth of 20 per cent. The value of sales in the local market is estimated at OMR3 million now.