Backward integration through proper study and evaluation of the market needs, has made Al Hassan Switchgear a key player in Oman's industrial sector.
Al Hassan, a major name in the Sultanate's trading community, entered the manufacturing sector with its switchgear unit. Today, its manufacturing "Strategic Business Unit (SBU)" also comprises a fan facility and a paint factory in which Al Hassan has 51 per cent stake.
Al Hassan Switchgear Manufacturing Company is one of the top switchgear producers in the Gulf, says group general manager Syed Muhammad Rizvi.
The company has engineering and design capabilities as well as manufacturing facilities including sheet metal fabrication, powder coating, injection moulding and various other processes. "All the components except the electrical ones such as circuit-breakers, starters, contactors, etc. are made in our factory. The electrical parts are imported from world leaders such as ABB, Westinghouse, Mitsubishi, etc." says Rizvi. "All our designs have been tested in Britain for the latest IEC standards. They also have ASTA Certificate which makes sure that we are on par with international manufacturers."
"When the buyer comes to us, he is buying a product designed, produced, assembled and tested by us. The products also have the international quality certificates."
The Al Hassan range includes:
All the products meet oil and gas and power regulations. Al Hassan has supplied its products to some of the most prestigious projects in the Sultanate, including Bait Al Baraka Guest Complex, Port Sultan Qaboos, Oman LNG, Grand Hyatt Hotel, Sohar Industrial Estate etc.
Al Hassan enjoys more than 60 per cent share of the large projects in the Sultanate, says Rizvi.
Al Hassan's ability to custom-make designs is a big plus point for the firm as it is to its customers.
The marketing of the products is done by the group's trading firms. "Since we are leaders in the trading of electrical products, it really helped us work backward and see what we could produce that will sell," says Rizvi.
"You can have the best systems but once the product is produced how do you sell it? That is the problem many factories are facing now.
"The success of the manufacturing companies will be greater if they tie up with trading companies. Some produce excellent products but cannot do the marketing well," Rizvi says.
"The strength of Al Hassan, on which it has been growing, is that we are first a marketing company, we know exactly what the customer wants, at what price a product sells and where it is produced.
"While designing our own product, we had kept in mind the specific requirements of our customers by which we scored an edge over the imported products."
Al Hassan Switchgear's products are exported to the UAE, Qatar, Bahrain, Saudi Arabia, Jordan, Malta, Portugal and Britain. The biggest market of the company outside Oman is the UAE. And the products are marketed by its own group companies, Al Hamas Trading Company in Dubai and Noor Al Khaleej in Abu Dhabi and they employ 14 trained sales engineers to cater to these two markets.
"We are one of the unique companies, which started exporting in the second year of production itself. The company's exports this year is forecast to touch 55 per cent, out of which the UAE itself accounts for 48 per cent. The domestic sales will account for 45 per cent this year," says Rizvi.
The company, which is in the process of getting ISO 9001 certification, focuses on large power projects, oil & gas projects, industrial projects, Hospitals, Sea/Air Ports and multi-story buildings.
Recently, Al Hassan Switchgear has moved into its purpose-built factory in Ghala. The 14,000 sq. m. plot houses all the facilities of the company. "By moving everything into one place, our productivity will improve by 20 per cent without having to do anything else," says Rizvi.
The company's present turnover is $10 million per year. "There is a lot of room to grow, he says.
Al Hassan's fan unit - Nassam Industries - is also part of its backward integration process.
"We saw a need for local industry. We put our parameters, we designed it, tested it internationally, and now we have been producing fans for the last two years," says Rizvi.
am fans are approved by several government departments and major consultants.
"Our ceiling fans target the higher end of the market. We are not competing in the low-end market. We have designed our products to give a better performance," says Rizvi.
The company has introduced aluminium powder-coated blades to meet the needs of the region. It has a capacity to produce 100,000 units. "We are not in the quantity game. If we were, we could have produced low quality products. Slowly, we will increase production and we also have plans to export," he says.
Al Hassan is a majority partner in Asian Paints Middle East situated in Ghala.
he group's future plans, Rizvi says the company will be introducing new products in all the units, adding engineering value addition. "We are also studying other relevant projects where the group can provide value addition. The manufacturing should have a link with our contracting or trading arms. Our approach has been to look at what we are strong in marketing and work backwards and see whether we can manufacture it profitably."
Apart from the manufacturing units, the group includes Al Hassan Engineering Company, Al Hassan Electricals Company, the flagship of the Group, Al Hassan Equipment Company, Al Hassan Building Materials Company and Hi Tech Services and Supplies, besides Al Hamas and Noor Al Khaleej in Dubai and Abu Dhabi respectively.
Al Hassan also markets local manufacturers' products. Two such major producers are Al Jizzi Transformers and Majees Lights (light fittings).
"Oman is diversifying into gas and petrochemicals in a big way. We are also looking into petrochemical-based industries in the medium to long-term," he says.
Rizvi says Oman's industrial policy is well thought out and is balanced. "There is no overprotection which could make the industries weak in the long run. There are also many incentives provided."
