National Detergent Company (NDC) brands are not exactly unknown quantities in Gulf supermarkets, but they have to fight hard to attract buyers in the midst of big-name offerings linked to multinational outfits.

In the home market of Oman, NDC brands enjoy strong recognition and one of them Bahar is the market leader. The company has been in the business of detergents for about a quarter of a century in the Sultanate and some hard work has gone into creating products of more than acceptable quality and also into marketing them in the country’s far-flung wilayats. The detergent business being one of the most competitive anywhere in the world, NDC faces an uphill task in presenting a strong bottomline.
Increases in the prices of raw materials and packaging as well as rising marketing and distribution costs have impacted on its operating margins.
The company achieved revenues of RO7.28 million ($18.9 million) in the first half of 2007, an increase of 36 per cent over the same period in the previous year, while the net profit was a modest RO210,823 against RO77,482.
During 2006, the sales revenue was RO10.14 million against RO9.36 million in the previous year, while the net profit worked out to RO139,107 compared with a total loss of RO856,000 in the previous year.
The better results in 2006 and first-half 2007 could be attributed to the implementation of what the company described as a “strategic revival plan.” This entailed opting out of certain markets and products which were not yielding profitable returns.
Bahar, the flagship brand, continues to maintain its market position and the sales value has been registering reasonable growth, NDC says. It also reported that the soap division performed particularly well. The company has introduced new products which it says have been accepted by customers. Sales in select new export markets are also encouraging, it adds.
NDC has two major divisions, namely the Consumer Products Division and the Sulphonation Division. The former manufactures, markets and distributes detergent powders, liquid detergents, toilet soaps, shampoos and other industrial and household cleaning products. In Oman’s northern region, the company distributes its products directly, while in the export markets this is accomplished through a network of distributors developed over a period of time. Detergent powder accounts for a major portion of the company’s business.
The high level of raw material prices in the detergent industry and the continuing intensive competition have impacted on the operational performance of Middle East Detergent Manufacturing and Trading Co, where NDC has a significant investment
The Sulphonation Division is engaged in the manufacture of sulphonic acid, a surface active agent used in detergent and homecare products. The product is sold mainly to manufacturers in the region and nearby markets.
NDC believes that considering it has developed a reasonable presence in the GCC markets through a distribution network built over the years, it will be able to leverage its distribution strength into volume gains as the economies of the countries in the region grow. It also sees better prospects with the opening up of Arab markets for GCC products and better opportunities with product development.
But, on the downside, available excess capacity and the continuing price competition and increases in raw material prices continue to pose a threat to growth and margins. In the Sulphonation Division, the price of the major raw material had gone up substantially due to increases in the price of oil and there was reduced availability of other raw materials in international markets. The company managed to pass on part of the increased cost to consumers though a portion had to be absorbed. It acknowledges that opportunities exist to increase export sales volumes but that achieving satisfactory margins in those markets would be a continuing challenge. 
NDC was established in 1981 by Abdul Hussain bin Bhacker Al Lawati, the chairman of the company. The other major promoters of the company are the Omzest (Omar Zawawi Establishment) Group and Ominvest.