Oman Flour Mills expands presence in food sector

Oman Flour Mills (OFM) and its investment arm, Atyab Investments, are pressing ahead with the implementation of a number of initiatives to strengthen its leading role in the domestic food sector, as well as support national food security objectives.

Ahmed bin Ali al Bulushi, Chairman - Board of Directors, said multiple projects are being evaluated across the group. The projects focus on integration across the value chain as well as diversification into new ventures, he added in the Directors’ Report for Q1 2023.

Significantly, OFM plans to build on its successful import of grain from Australian growers. In March, the group’s Australian subsidiary, OMAUS Ltd, marked the maiden shipment of a 34,728 metric tonne consignment of grain sourced directly from Australian farmers.

“Since the company achieved significant savings from the transaction, it will continue the efforts to expand the operations,” said the Chairman.

With regard to its pipeline of new projects, OFM has announced the appointment of a consultant to support the development of its Mini-Factories project. The consultant’s role is to assemble a “portfolio of projects to be developed within the cluster”, the Chairman said.

Following the relaunch of its Al Khamayil dairy brand with the reintroduce of laban products, the Group is now focused on the commissioning of its new state-of-the-art factory at Rusayl in Muscat Governorate.

At the same time, civil works on the Group’s pre-mix plant and feed mill expansion are on track and progressing as per plan, Al Bulushi stated.

In addition to its domestic growth plans, Atyab Food Industries is also looking to expand overseas. The company is exploring opportunities to set up additional facilities in the GCC region.

Publicly-trade OFM reported a profit of RO 604K for the first quarter of 2023, which represents an increase of 13 per cent from the same period last year.

The company’s profit was driven by a number of factors, including Increased sales volume, Increased sales prices, Cost savings from the company’s new factory in Rusayl, and Improved operational efficiency, the report added.