PHOTO
25 September 2016
Muscat: As many as 15 small and medium-sized downstream steel projects in Sohar were presented before a large gathering of potential investors here during a seminar on investment opportunities.
These investment opportunities of downstream projects, presented by the Sultanate's leading iron and steel producer Jindal Shadeed Iron and Steel in association with the Ministry of Commerce and Industry, include manufacturing units for wire nail, forging units, barbed wire, wire drawing, bolts and nuts, fabrication, galvanizing unit, motor rewinding and polymer coating of rebars. All these units can use products of Jindal Shadeed as feedstock, which will help the country to add value in the entire chain of steel production.
Jindal Shadeed Iron and Steel, part of the $12 billion Indian steel conglomerate Jindal group, produces hot briquetted iron, billets and rebars at its Sohar plant.
The seminar, organised by the Ministry of Commerce and Industry, was attended by Dr. Ali bin Masoud Al Sunaidi, minister of commerce and industry, Eng. Ahmed bin Hassan Al Dheeb, undersecretary at the Ministry of Commerce and Industry, senior officials from the ministry, consultants from Advanced Business Consultants, and more than 100 entrepreneurs.
As many as nine units are directly connected to steel as raw material, while another six supporting projects - woven bags unit, trading, clinic, car washing, rent-a-car and restaurant - are also mooted by the Indian steel producer before the potential investors.
Jindal Shadeed had conducted separate feasibility studies with the help of Advanced Business Consultants for all these projects, which included market study (demand analysis), technical analysis and financial study. Market study was also based on secondary data and information provided by customs department on imports. The study has also taken into account cost of machinery, capital expenditure, term loan, pay-back period, manpower requirement and its availability. The detailed study reports of all these projects are available with the Ministry of Commerce and Industry for potential entrepreneurs to use the same.
However, major success factors of these ventures include the ability to achieve targeted sales volume. Product quality is important and the company has to maintain quality at all the time.
The response from SME sector at the seminar was good as more than 100 companies participated in the event, said Eng. Ahmed bin Hassan Al Dheeb, undersecretary at the Ministry of Commerce and Industry. The entrepreneurs, who are serious in these projects, will conduct a detailed study and the ministry will follow-up with these entrepreneurs. "We are trying to develop downstream projects, using products of mega projects."
Addressing the seminar, Musallam Mubarak Al Jabri, associate vice president (HSSE, HR and CA) of Jindal Shadeed Iron and Steel Co, said that the development of SME sector is vital for developing the economy. SMEs in Oman are on the path of growth and it is not contributing significantly to the gross domestic product of the country now.
Al Jabri said that it is time for the small entrepreneurs to implement the project and the government should help create a suitable environment for investment.
FDI, mining laws
Referring to the progress achieved by the government in enacting the new foreign direct investment and mining laws, Al Dheeb said that these laws are with the Ministry of Legal Affairs now. Presently, 100 per cent foreign ownership (outside free zone area) is allowed by the government, subject to an approval from the Cabinet. In the case of industries within free zones, the approval for investment ceiling is decided by the free zone authorities.
Al Dheeb also noted that the country is facing challenges in enhancing investments and some new programmes have been introduced to overcome these challenges.
Muscat: As many as 15 small and medium-sized downstream steel projects in Sohar were presented before a large gathering of potential investors here during a seminar on investment opportunities.
These investment opportunities of downstream projects, presented by the Sultanate's leading iron and steel producer Jindal Shadeed Iron and Steel in association with the Ministry of Commerce and Industry, include manufacturing units for wire nail, forging units, barbed wire, wire drawing, bolts and nuts, fabrication, galvanizing unit, motor rewinding and polymer coating of rebars. All these units can use products of Jindal Shadeed as feedstock, which will help the country to add value in the entire chain of steel production.
Jindal Shadeed Iron and Steel, part of the $12 billion Indian steel conglomerate Jindal group, produces hot briquetted iron, billets and rebars at its Sohar plant.
The seminar, organised by the Ministry of Commerce and Industry, was attended by Dr. Ali bin Masoud Al Sunaidi, minister of commerce and industry, Eng. Ahmed bin Hassan Al Dheeb, undersecretary at the Ministry of Commerce and Industry, senior officials from the ministry, consultants from Advanced Business Consultants, and more than 100 entrepreneurs.
As many as nine units are directly connected to steel as raw material, while another six supporting projects - woven bags unit, trading, clinic, car washing, rent-a-car and restaurant - are also mooted by the Indian steel producer before the potential investors.
Jindal Shadeed had conducted separate feasibility studies with the help of Advanced Business Consultants for all these projects, which included market study (demand analysis), technical analysis and financial study. Market study was also based on secondary data and information provided by customs department on imports. The study has also taken into account cost of machinery, capital expenditure, term loan, pay-back period, manpower requirement and its availability. The detailed study reports of all these projects are available with the Ministry of Commerce and Industry for potential entrepreneurs to use the same.
However, major success factors of these ventures include the ability to achieve targeted sales volume. Product quality is important and the company has to maintain quality at all the time.
The response from SME sector at the seminar was good as more than 100 companies participated in the event, said Eng. Ahmed bin Hassan Al Dheeb, undersecretary at the Ministry of Commerce and Industry. The entrepreneurs, who are serious in these projects, will conduct a detailed study and the ministry will follow-up with these entrepreneurs. "We are trying to develop downstream projects, using products of mega projects."
Addressing the seminar, Musallam Mubarak Al Jabri, associate vice president (HSSE, HR and CA) of Jindal Shadeed Iron and Steel Co, said that the development of SME sector is vital for developing the economy. SMEs in Oman are on the path of growth and it is not contributing significantly to the gross domestic product of the country now.
Al Jabri said that it is time for the small entrepreneurs to implement the project and the government should help create a suitable environment for investment.
FDI, mining laws
Referring to the progress achieved by the government in enacting the new foreign direct investment and mining laws, Al Dheeb said that these laws are with the Ministry of Legal Affairs now. Presently, 100 per cent foreign ownership (outside free zone area) is allowed by the government, subject to an approval from the Cabinet. In the case of industries within free zones, the approval for investment ceiling is decided by the free zone authorities.
Al Dheeb also noted that the country is facing challenges in enhancing investments and some new programmes have been introduced to overcome these challenges.
© Times of Oman 2016
