1 Message from the Group Managing Director My Dear AL ANSARI FAMILY, Please read the message from our Managing Director on our present scenario to gain We are experiencing one of the most some wisdom on how to proceed further challenging 1st half of the year since we successfully. started our operations in Oman over past four decades. Ignoring facts does not change In our Family, SBU-2 (Steel) and SBU-3 facts. As we have mentioned in our previous (Trading/Marketing) have managed to keep issue, Embracing challenges today, makes AL ANSARI flag flying high. In this market a stronger tomorrow; so let us review the they continue to be classified as ‘favoured’ scenario, embrace it and prepare for the suppliers to our valuable clients. We are proud challenges ahead. Like they say Success of their leadership and teamwork. comes in “CANs” Let’s continue to remain vigilant in this and failures in market and have a plan to prepare for “CAN’Ts”. The bee various challenges ahead. has a sting but it has honey too. So “Kimohians” have always been front-runners let’s look at every in innovation and bringing New Technology negative action and to use. In this 1st half they have installed a make positive out Solar Energy Power plant, further supporting of it. their mission to create a “Greener” world. We also congratulate “Kimohians” on the At the end of the 1st various accolades. They were one of the first half, we had also awardees of the Sheikh Mohd. Bin Rashid just witnessed the Holy month of Ramadhan. Al Maktoum Business Award in Innovation Let me hope all of us had a meaningful Eid- (a category created this year). They also ul-Fitr. Our best wishes to all our well-wishers, received the CSR certificate award from supporters, customers and suppliers. the Chamber of Commerce for the fourth consecutive year. They continue to remain Though the overflow of project from 2016 has focused on their mission and never fail to kept most of us busy, the cost escalations, compromise on their desire to give back to uncertainty, economic downturn and a weaker society at large. We are proud of their efforts, pipeline of new projects have made us focus leadership and team work. on continual innovation, cost reduction and productivity increase measures and global Contracting activities (SBU1) and Natural expansion. Stone Company in general have been the hardest hit under present economic scenario The Government authorities have also and we recognize this. The diminishing recognized this as well and we hope they work pipeline of new projects in Oman and tougher with the private sector in a structured manner market conditions with all parties focused to ensure we all overcome this era together on cost cutting has further put pressure on positively. the project margins. Akar and Engineering Services have not been as badly affected due We have revised our Al Ansari Family’s vision 2016 backlog and their current order book. In and values to reiterate that employee growth addition Engineering Services has spread their and safety and customer satisfaction remain wings to India and Sri Lanka which is bearing top priority for us. good fruits for them. Leaders of these teams, 2 please protect yourselves from useless and negative thoughts; maintain a positive attitude and let the show go on – let’s Our Vision continue to plan ahead and be prepared. Let’s all put our efforts and mind together and To be an inspiration for fostering look into ways to help these divisions during human values and enhancing this difficult phase. business performance. Failing to plan means planning to fail. So Our Values let us set clear goals with the relevant team members of our family. Please remember, Commitment, Pride in the work, Expanding Globally and coming out of the Integrity, Quality & Safety. comfort zone with creativity, hard work, dedication and the right goals is the only way to overcome the present storm. Let us all work towards this together – as a team. With that I am confident that no storm can prevent us The Al Ansari Logo amplifies from succeeding. the brand image fostered by our company. The colour Red signifies the vitality Also there is no such thing as a failure – and exuberance that we These are all simply learning opportunities. possess. It also symbolizes So let us keep up the spirit and vow to sail that we are sensitive to the through and never compromise our family ongoing trends in the market values and vision. and are constantly looking to implement and promote Remember that we should never ask for innovations that are required to have that cutting edge. The fort signifies commitment lighter rain, but just for a better umbrella. we as a company wish to extend to our valued customers. The fort also represents All the Best for the remaining of the year 2017. the unflinching character that our company is well-known for. It also symbolizes that our May God Bless us all. clients can feel secure with us and that they trust us to deliver product /services that are Ma Salaama & Namaskar. of high quality standards. The two “A”s state that we are an A grade company and our employees take pride in being a part of an A class organization. The square engulfing the fort exhibits the “fair and square” dealings that we practice with our customers, suppliers and our employees. Kiran Asher An overturned pot is an opportunity for the plant to find new ways to prevail. Perseverance & Resilience will make it Grow and Prosper. Challenges are not meant to destroy you, they are there to strengthen you. The challenges we face today are developing the strength we need for tomorrow 3 Message from the Managing Director Challenges of managing business in • Running loyalty or customer incentive Economic down-turn. programs: It is a proven concept in Like climatic cycles, like health cycles – there is many businesses. an economic cycle in the business as well. There Somehow, we have are good times in business, generally when the not tried this. We have national economy is strong, and the desire to repeat customers and spend money is also strong. Conversely, there are it is important that they bad times, when the economy is poor, and yet the benefit something from Nation continues to keep ambitious development us for their loyalty. projects. • Adapting our As luck would have it, the entire region – that was products and services predominantly relying on Petro dollars, is going to be more suited to our customers’ current needs: through an economical down turn. Oman, with For example, if the customer has the ability to pick its heavy reliance on the oil income, has had an up the goods from our yards, we must pass the adverse impact. Our business predominantly transportation cost benefits to them. Conversely, relies on Oman economy, and therefore, we need a customer needs goods to be delivered in a to carefully and quickly strategize our policies to particular way at a particular time we need to strengthen our business. On the construction modify our system to ensure that the customer is side, we are still busy and hiring - Alhamdulillah. delighted. Right from the time the customer walks However, it is time to prepare ourselves as to how in and leaves our premises, he must have the we wish to combat the ensuing storm. feeling of importance and respect from us. Every document that he refers and every word that he The stronger the business is, the less likely it is to hears from us, must give him the sense of value be affected by risks. Strengthening the business that he brings to our business. No customer is big doesn’t just involve financial management. It also or small for the value of business he gives. He is includes strategies to retain and broaden our important just because he is our customer. Who customer base, market our business affordably, is small now has the potential to be big tomorrow. keep morale high amongst the staff and improve His good impressions would make him direct business practices. We should also look for some big customers also to us. opportunities to network and form alliances; this will help minimize our exposure to risk and offer Marketing strategies new option and opportunities. Reviewing our marketing strategies can help us to come up with new ideas to increase sales and I would like to suggest considering the following find better ways of reducing our marketing costs strategies. and improve its effectiveness. We should focus on communicating our competitive advantage once Making customers a priority again to all our regular customers and even display Customer service is about providing customers with what they want, when they want and how they it in prominent places to make more people aware of want it. If our business provides quality customer our capabilities. I am sure, within our own company, service - aligned with customer expectations and most people are not 100% aware of our product and not what we know from the books - we are likely service range. Let us improve our awareness both to retain our existing customers. It is believed internally and externally. that the amount of energy and the cost spent in acquiring a new customer is almost 20 times the Our unique selling proposition – like extended cost of retaining customer. It, therefore, illustrates warranty, additional spares, proper training of do’s the significance of retaining existing customers. and don’ts, should also assist us to stand out from 4 the crowd. Alongside this, it’s important to develop business partners. strategies to measure the effectiveness of our Consider forming alliances with other business, for marketing. We have been fortunate with our team example, transportation of our staff and material. who believes in hard work and reach out to our There are many agencies who may be able to esteemed customers. But times are changing. We undertake such errands more cost effectively than need to learn to work smart as well; not just hard. As doing it ourselves. a result, we need to explore effective marketing tools by investing in technologies including social media. Developing innovative practices Developing innovative practices may help us adapt Managing staff to changing market conditions and stay ahead of We need to review the staffing register carefully our competitors. As part of this process, we should to evaluate the necessity of every staff and its review if using technology will increase efficiency, related costs. Often times we show generosity reduce costs and make our business more during good times and hire people at much higher competitive. For example, doing business online. cost due to Industry pressures or the client’s Our exposure and perhaps opportunities are not needs. There is no need to retain unwanted, non- aligned but the fact remains that this is an option. performing and non- cost-effective staff. We need We need to tweak the rules and establish more people who have their dedication to the causes of friendly methods to reach out to our customers, the company, who commit to our ideology and are than for them to visit our stores, offices etc. willing to be flexible. We run regular vehicles to deliver documents Also, we need to revisit the overtime hours. We to our sites, our clients etc. Honestly except for often continue the old culture and grant over time some very critical papers – most of the dispatch on historical tradition instead of assessing the real could be organized with alternative means or using job needs. Lot of overtime cost could be saved more creative ways in using our own resources. by rescheduling duty hours and reallocating job Similarly dropping staff and picking them up from responsibilities. Prioritizing and planning also need the airport needs to be reviewed. to be paid attention to improve our effectiveness and productivity. Our own control to quantity of items ordered for our projects need to be further streamlined. Our Build morale by clearly communicating with our yard is full with surplus materials from the previous staff on what is happening within the business, jobs. This is a clear proof of the need to improving what the local and global scenario is in our our site requirements. Similarly, storage at site business. Try to involve them in decision-making needs better management in terms of security, and finding solutions. safety and the way things are loaded, off loaded and stored. We may also consider training our employees to undertake more duties. We can conduct staff Alhamdulillah, our company has braved many skills assessment to identify the training our staff storms and have deep roots to uphold the may need. A clear training plan customized to get leading position. However, singularly relying on better results at work-front needs to be drawn up the management to keep the wolf out of the door and implemented. We have enough material on our is not fair. We must collectively work towards Intranet and of-course on the internet as well. A preventive and innovative measures. Collectively systematic approach would give us exciting results. we are strong and this strength must prepare us to take on the new turn effectively. Empower those willing and capable to shoulder more responsibilities. Doing varying kind of job In conclusion, I would like to remind you all, is refreshing and rejuvenating. Many people are and myself, that whilst good time did not last so bored doing the same thing day in and day out. will this economic down turn as well. Let us be Make their life more enjoyable and give them more positive and work with that mental frame that we reasons to believe in themselves. are winners and would overcome any hurdle in our path. All the best to all the team members of all the Networking teams. Networking can be useful to understand how other businesses are coping. We may also discover new opportunities, customers, staff, suppliers and Yusuf Nalwala 5 Contracting - SBU-1 Civil p Bausher Project (B3B): Bausher Wastewater Network Project for Client Haya Waters, has completed 22 KM of Sewer Line New Network including Micro tunnelling out of 41 Kms, in busy and bustling corridor of Al Khuwair. It is ready to Start Wet connections operations from July 2017 onwards to meet a Target of 1200 Wet Connections for Houses and Commercial p Buildings. We have planned to complete these Police Station Complex at Jibal: within this year. TSE Irrigation network is As per the schedule of scope of works, for completed with 2 Kms of T - line out of 10 Kms which EI issued is complete. ROP has added the Scope. Helipad and Access Road to our scope which will complete by Sept 2017. Waiting for Power and water connections from ROP to commission and handover the project to client, which is scheduled in September 2017. p Seeb Mosque Project: Around 90% of our scope of work has been completed with all respects and only nominated sub-contractor’s scope of works in progress at present. p Samad Substation Project: Started Main Works from 2nd Week of Feb 2017 and works are in full swing. Substructure works for both GIS building completed and Ground Floor Slab works in progress. Transformer, Transformer Shed and Capacitor Bank Shed Foundations completed. p Project Site has been awarded with 1st Sinaw Substation Project: Project Place for HSE campaign 2017 and Best HSE Site has been awarded with 1st Place for HSE implementation at site from OETC among all campaign 2017 and Best HSE implementation running projects of OETC. Project is scheduled to from OETC among all running projects of OETC. complete by Jan 2018. Project is scheduled to complete by Dec. 2017 6 guard Room, generator room, MEP and Civil works) for Royal Oman Police at Taqa, Salalah. q OETC Project Salalah: OETC project has p Sohar IIP Project: Substructure works are in full swing: Client Teijun is happy about our Quality at site and we have received appreciation for best performance for Quality at site. Project is been awarded in Jan 2017 and commencement scheduled to complete by July 2018 date of the project is March 2017. The works comprise construction & Maintenance of an Office Building consisting of Ground floor, First floor & Roof floor at Salalah Urban south, Sahalnot including guard room, generator room, and pump rooms. The scope of works includes all civil, interior works, Electrical, mechanical, plumbing, external civil and services. p Taqa Project Salalah: Construction & Maintenance of Coast guard Building (including Al Ansari Contractors LLC p p Construction of NOC & Store Building: Office of Director for MOM at Rustaq: AAC being the subcontractor for the project, is 4000 m2 Building is almost complete, except supporting Ericsson Oman (Main Contractor) the changes done by client recently and external in construction activities related to the network works are in full swing. Project is scheduled to equipment installation for Ministry of Defence complete substantially by July 2017 and Handover (Signal Dept.). The project comprises of three by August 2017. Undersecretary has visited the building with total built up area of 2100 m2 and site and appreciated our efforts to complete the is scheduled to be completed by August 2017. project to their requirements and was very happy Additional works for construction of generator about the quality of work. compound and external cabling works has been awarded recently. 7 Contracting - SBU-1 MEP New Projects • Construction of Roads, Infrastructure and Building works at the Government Berth Area, at Port of Duqm (IP-4) - Sub Contract for Electro- Mechanical Works. We, MEP are proud to be part of the above infrastructure development works at Duqm Port, by signing a sub contract agreement with Main Contractor - M/s Combined Group Construction (Oman Branch), to carry out Electro-mechanical The final testing and commissioning of Electrical, Works in all the buildings, under the above Plumbing and Air Conditioning installations are contract, such as Administration Building, Staff going on in full swing to handover the project to Accommodation, Boat Shed, Guard House, the Client, including snagging works, in line with Screen office, Gate House, Service Building, the Main Contractor’s works programme Armory Store, Amenity and Terminal Buildings. q Other Ongoing projects are : The project is awarded by client SEZAD (Special Economic Zone Authority at Duqm), a Government agency entrusted with the powers and responsibilities of developing and administering the Duqm Zone to become a regional maritime and transit-trade hub, an important complex for export- oriented industries, and an attractive tourism destination on the Arabian Sea. The most challenging aspect of this fast track project are immediate commencement and short completion period of 16 months and we are gearing up to jump start the preparatory works at site. • Construction of OETC [Office and LDC ] Building in Dhofar Governorate (Salalah) – Sub Contract for Electro Mechanical Works As a domestic sub-contract, this project is to be executed along with our Civil Team. The team of MEP is in top gear to accomplish this task within the assigned duration. • Sayyidah Fatma Bint Ali Al Said Mosque (Khamis Al Haboos) at Seeb – Sub Contract Projects completed during first half of 2016: for MEP Works. The MEP works in this project are in completion stage and in line with Main Police Station Complex at Jibel – Sub Contract for Contractor’s work program. Electro Mechanical works • Sultan Qaboos Mosque project at Shinas, Sub- Contract for MEP Works. • Coast Guard Police Station at Al Taqa – Sub Contract for MEP Works • Labour Care Office at Rustaq – Sub Contract for Electrical and Plumbing works 8 Building Material Trading - SBU-2 BMT As expected the first half of the year 2017 witnessed Some of the major jobs, which we received during a drop in the demand. Due to the enhanced the first half of the year, are Petrofac E&C for valve production of the Local mills combined with the less maintenance at Sohar Refinery Improvement Project, demand, put the steel prices on tremendous pressure Salalah II Independent Power Project for Calibration in Oman and we witnessed the Oman steel prices of instruments and for SUR LNG. We have bagged much lower, compared to the prices in the GCC. some orders from Haya water for repair, testing and commissioning for 24” butterfly valves for OGC We have drastically reduced the imports of steel from compressor station Barka and another order for Turkey and now are pushing more of Jindal steel removal installation, repair, testing and commissioning through all our branches. The strategic alliance with 10” Pressure control valves. Jindal Shadeed is proving to be a win-win proposition for both the companies and we really are proud to be Our product sales segment continued to grab good associated with Jindal Shadeed. orders. During the first half of the year, we have won the first order for Evotorque Electric Torque In line with our strategy to be closer to more Multiplier & Manual Torque Multiplier with accessories customers, on 22 January 2017, we opened our new from Norbar UK, for the Project Oman Across Ages Satellite Branch in Al Amerat. We have planned to Museum at Nizwa. We also got the order from open more outlets during the second half of the year ‘Voltamp Transformers Oman’ for testing the Current also. q Transformer Test Set from Vanguard Instruments Company, Inc. based in US. We have also successfully completed recently our ISO 17025: 2005 Audit by International Accreditation Service – US for our Calibration Laboratory accreditation renewal. q We participated in an exhibition on the World Metrology day conducted by the Directorate General Rebar cut and Bend During the first half of the year Rebar cut and Bend unit saw a drastic drop in the demand for the cut and bend. Couple of new cut and bend facilities have started their operations in Oman. Combined with less for Standards and Metrology under the Ministry of demand and severe competition, rates for the cut Commerce & Industries (MOCI) at Majan Continental and bend charges have dropped. We have seen the Hotel on 21st May 2017. During the exhibition, Ms. delay in Payments from the customers. Considering Zahra Al Nomani & Mr. Nawaf Ali Juma explained the current market conditions, to be on a safer side, about our activities to the dignitaries and audience we have adopted a conservative policy in the credit present from the different organizations. It was a sales. Due to all these factors, our volumes have good venue to display our product range to many dropped significantly. We have restructured our government authorities. resources. We have taken necessary additional steps to reduce our costs and are confident that we will be Metal Finishing (Electroplating) fit ourselves in to this new environment to take our business forward. First half of the year was good for us. We managed to achieve a growth of 11% Year on year and have Instrumentation, Calibration & Projects some good pending orders to execute. We have won Our expansion of business into different verticals the tender of RCA for the Gold plating of Guard Post helped us move forward in these difficult market Qasr Al Alam Muscat Ceremonial Entrance. We are conditions. The quality of our services helps us to add expecting some more good orders during the coming more customers into our loyal customers’ database. months. 9 LED & Security HoistCam™ is a rapidly deployable wireless camera system that provides an operator with a direct Safety and productivity are top priorities for video feed from anywhere on a job site. HoistCam contractors and industrial operations. Improving is a rugged camera system that can be installed in either makes a company more profitable and seconds on the hook block of a crane to the boom competitive. Technology advancements that can do tip or, at the location of the blind lift. 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