New investments: Notable is a proposal to develop a food-centric industrial cluster that will house various mini food factories.
Majority state-owned Oman Flour Mills (OFM), one of the largest food companies in the Sultanate of Oman, is planning an array of new investments to support its further integration across the food value chain, as well as diversify into new areas of the agri-food business.
Publicly-traded OFM – part of Oman Food Investment Holding Company (OFIC) – says it is currently evaluating “multiple projects” across its already diverse group.
Notable is a proposal to develop a food-centric industrial cluster that will house various mini food factories. “The aim of these mini factories is to set up small- scale manufacturing units designed to meet the requirements of Oman. Go-to-market studies have been complete for four food segments, while two locations have been identified. The company is preparing a phased execution plan for this initiative,” said Haitham Mohamed Ali al Fannah, Chief Executive Officer.
Additionally, Oman Flour Mills is weighing an important foray into wet milling of corn starch and its derivatives – a move that will open up new business opportunities for the Group in the promising corn-starch based food industry. Corn starch and its derivatives have wide application in a variety of food products.
“A detailed technical study was completed in 2021. A go-to-market plan and market opportunity assessment is being carried out by a leading consulting company.
The final report shall be made available in Q2 2022,” said the CEO in the company’s Management Discussion & Analysis Report for fiscal 2021.
Another area of interest pertains to pre-mixes, according to the company. Following the completion of a technical and market study, the project has since advanced to the execution stage with tenders for key machinery having been awarded. “The project will help reduce cost for captive pre-mixes and provide an additional revenue stream for the company,” Al Fannah stated.
To further strengthen its presence in the animal feed production sector, Oman Flour Mills has set up a new venture, Bio-Product Oman (BPO), which aims to produce long fibre pellets for animal feed and aqua feed. The project is presently in the pre-operative execution phase, according to the company.
In other ventures being explored by the Muscat-headquartered Group, Oman Flour Mills is evaluating brownfield investments in the honey bottling and high-end bakery segments. Investments in the organic foods segments are also envisaged during the current year, it said.
Furthermore, with the aim of reliably securing its substantial grain requirements from international markets, the Group plans to engage directly with grain growers in key markets. To this end, Atyab Investments, the investment arm of the Group, recently announced the establishment of a new company in Australia, one of the world’s biggest grain and livestock farming nations. Named OMAUS Pty Australia, the new company aims to “contract with growers in Australia” and secure better procurement terms for its grains. A similar venture has also been set up in Uzbekistan, which is also a major grains producer.
Meanwhile, Atyab Food Industries (AFI), a 100 per cent owned subsidiary of Oman Flour Mills, says it plans to install new product lines for donuts, samosa Leaves and other bakery products.
To this end, it has appointed a consultant to develop long term strategies to capitalise on growth opportunities available in the domestic and regional markets, the company said.
Oman Flour Mills Group recorded total revenues of RO 97.34 million for 2021, which was 3.5 per cent higher than the previous year’s total of RO 94.05 million. All sectors of the business achieved an increase in the revenues, except the flour sector, which declined 17.3 per cent, the company added.
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