One of the Gulf’s leading manufacturers of steel furniture is staging a recovery after a period of depressed market conditions stemming from the global economic slowdown.

Al Khoudh Steel Factory (AKSF) registered an output of 175,000 units in the first half of this year which its general manager Gautam Bose termed encouraging. During the whole of 2009 output was 230,000 units, well short of the previous year’s figure of 382,000 units.

 “It is expected we will achieve in the second half a figure similar to the first half’s so as to end the year at almost the same level as in 2008,” said Bose.

AKSF sales revenues dropped in proportion to the fall in output. But with positive signals seen in regional markets and some European states stronger growth is expected in 2011.

“The company is also constantly rationalising its product mix to align with market requirements and to ensure profitability for its operations,” said Bose. AKSF has added several new products to its range in recent years including sliding cupboards with a double-door unit, gun cabinets, three-tier beds, swan neck drawers for cabinets, furniture with anti-bacteria coating, library shelvings and sloped tops for lockers.

Collaboration with GO

The Al Khoudh Steel Factory in Muscat

The company has a technical collaboration with GO Office Ltd UK for manufacturing its flagship GO range of office furniture for upmarket applications in the Gulf and Europe. GO products are tested and certified by Fira, UK, a leading agency for certifying storage furniture. “Al Khoudh Steel is the sole manufacturing licensee of GO products in the world, testifying to its ability to make quality products consistently and at competitive prices,” emphasises Bose. AKSF is also accredited with the ISO 90001:2008 certification by Bureau Veritas. It has installed CNC machinery and an automatic powder coating line both of which says the  general manager have strict inbuilt quality control systems to produce durable and aesthetic furniture conforming to accepted specifications and standards.

The Hadeed range of products comprising mainly lockers, cupboards, cabinets and bed and pedestal tables contributed most to the company’s turnover in 2009.

As much as two-thirds of sales come from overseas markets including the Gulf, Europe, Africa and the Commonwealth of Independent States.

Bose says AKSF has succeeded in gaining orders against stiff competition from low-cost Chinese companies and “large behemoth corporations of the US and UK.”

Consistent quality backed by timely shipments and pre- and post-sales service enabled the company to retain its longstanding partners and grow to its present level, says the official.

Ongoing contracts
Current ongoing contracts won directly or through channel partners include Petroleum Development Oman and the Omani ministries of education and defence.

Over the years the company has supplied to prestigious parties including Saudi Aramco and Omani establishments such as Petroleum Development Oman, Sultan Qaboos University, Nizwa University, the Royal Hospital, the Hyatt and Shangrila hotels, the hypermarket Carrefour, Oman Arab Bank and National Bank of Oman.

AKSF is a wholly Omani-owned limited liability company and part of the Al Hinai Group which specialises in the furniture and furnishing sector. The company is owned by the Al Hinai family.

It has opened a modern plant in Jebel Ali, UAE, which goes by the name of Metafurn International FZCO and is owned by the Al Hinai family and by GO.

AKSF has been acclaimed by the Omani Government for its contribution to Omani society and the national economy, winning His Majesty the Sultan’s Cup for excellence in industry and an award for being the best company in the small and medium enterprises sector.