CONSTRUCTION INDUSTRY
some of our main markets such as UK and UAE. There was intense competition among various players while the market size diminished to a great extent. As a result, considerable extra efforts and expenses had to be incurred to sustain sales at current levels. Additional provision for doubtful debts had to be made as one customer in UK went bankrupt and many customers delayed the payments. The company has chalked out a strategy for 2010 to overcome these problems and come back to profitability,” Vish Natrajan, CEO of OCC informed. He added, “During the year 2010, the company plans to focus its efforts and increase its sales volumes in the markets where the prices are remunerative and to seek price increases in the other markets. Also planned are reductions in fixed expenses to improve the financial performance.” But it is not going to be easy for OCC as the market competition in the sanitary ware 26 OER DOSSIER March 2010
The low cost manufacturers from China as well as established European brands outsourcing their products from low cost countries are becoming more and more popular is getting further intensified. With US and Europe under tremendous stress, the manufacturers in these markets are looking at Asia and the Middle East for sustaining their
sales volumes. This could lead to increased competition and further pressure on the prices. We could also witness mergers and acquisitions taking place for a further consolidation in the industry. On a positive note for the builders, lower prices could lead to lesser construction costs and the benefits could be passed on to the end consumers.
Electric cables – Volatile raw material prices The global cable industry is pegged at $150 billion but it is highly fragmented with the leader commanding just 2% share of the overall market. But in Oman, it is a different scenario. Oman Cables Industry (OCI) enjoys a large share of the market despite exporting over 60% of its products to other markets. The company manufactures a variety of specialized cables and is the only Omani cable company to offer a comprehensive range of power cables and overhead line conductors used by various sectors for power generation, electricity distribution,