30/01/2012 17:09 AST

Salalah Flour Mills is expanding in a bid to benefit from Oman's rising food requirements, which would bode well for the company's stock.

The Omani market heavyweight, with a 30 per cent market share, has already been operating beyond its maximum capacity, but the company's proposed new flour production line should further increase production to 1490 tonnes per day from the current 890 tonnes per day.

The project, expected to cost 7.3 million Omani rials, should increase Salalah's top-line growth to about 17 per cent over the next three years, said Kanaga Sundar, the head of research at Gulf Baader Capital Markets in Muscat.

Salalah Flour Mills benefits from favourable conditions in the Gulf country.

The country has a young and growing local population, expanding GDP and a burgeoning expat community, Mr Sundar said.

The company procures wheat from international markets and converts it into flour. Oman does not have a strong agrarian sector.

Wheat futures declined by 25 per cent in the past 12 months, trading at about US$6.47 per bushel.

The government introduced several measures to help its local companies, after wheat hit a peak in 2010.

It began offering subsidies to producers as a cushion when the price of wheat went beyond a certain limit.

The move puts players such as Salalah at an advantage over regional and international competitors, Mr Sundar said.

The country's government has also decided to supply and install metal silos that will store 300,000 tonnes worth of wheat for almost a year, against three months of inventory currently. The construction of the silos is expected to be completed by the end of next year.

The silos would help Salalah maintain its inventory levels and margins, and reduce price inflation during times of drought, Mr Sundar said.

Salalah Flour Mills recently started a pasta business and expanded the geographic reach of its products in Oman and beyond to help fatten its margins.

Salalah Macaroni, its pasta subsidiary, has the capacity to produce 93,000 tonnes a year of spaghetti.

Salalah Flour Mills set up branches in Nizwa in the northern region of Oman, where the majority of the population lives. Salalah has also started to export to new markets such as Yemen, Somalia, Djibouti and Zanzibar.


The National

Oman Flour Mills eyes major projects to drive growth

31/08/2017

Majority state-owned Oman Flour Mills (OFM), which oversees a sizable portfolio of food related enterprises, is keenly pursuing new business initiatives to grow and diversify its presence in the stra

Oman Daily Observer

Oman Flour Mills profits exceed RO 12m

01/06/2017

Oman Flour Mills Co posted a net profit of RO 12.145 million for the nine months ended March 31, 2017, as against last year’s profit of RO 8.921 million for the same period.

According to Sha

Oman Daily Observer

Govt stake in Oman Flour Mills transferred to OFIC

28/08/2016

The Omani government’s 51 per cent stake in the joint stock Oman Flour Mills Company SAOG (OFM) has been transferred to Oman Food Investment Holding Co SAOC (OFIC), a wholly government owned entity s

Oman Daily Observer

Ticker Price Volume
QNBK 124.80 275,932
SABIC 100.01 2,889,924
TAWUNIYA 92.21 115,275
EEC 17.21 992,484
ALINMA 17.73 19,061,890
FAB 10.35 2,580,953
WALAA 26.57 54,241
OFMI Sector Market
P/E
Price/BookValue
Dividend Yield (%)
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
IQCD 91.60 0.45 (0.49%)
QEWS 177.50 0.99 (0.56%)
AGLTY 869.00 -4.00 (-0.46%)
ALBH 0.51 0.00 (0.00%)
HUMANSOFT 3,900.00 -100.00 (-2.50%)
Investcorp grows residential real estate portfolio with $350 million

25/09/2017

Investcorp, a leading provider and manager of alternative investment products, today announced that its US-based real estate arm has invested in six multifamily properties in Florida and Arizona, for

CPI Financial

Commercial Bank of Qatar looks to Asian funding amid Arab boycott

25/09/2017

Qatar's third-largest lender, Commercial Bank of Qatar (CBQ), is considering borrowing money on the Taiwanese bond market, its group chief executive told Reuters, as a crisis in the region makes it h

Reuters

Vodafone Qatar launches Smart V8 and Smart E8

25/09/2017

Vodafone Qatar has launched two new 4G smartphones in its Vodafone Devices range, the Smart V8 and Smart E8. Both use the latest Android Nougat operating system. Vodafone Devices are designed by the

Telecompaper

ADGM Partners with ADIB to enhance Abu Dhabi’s fintech ecosystem

25/09/2017

Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi, today marked a new partnership with Abu Dhabi Islamic Bank (ADIB), a leading financial institution, to seek opportunit

CPI Financial

QIB named as safest Islamic bank in Qatar

25/09/2017

Qatar Islamic Bank (QIB), Qatar’s leading Islamic Bank has been recognised by Global Finance as the safest Islamic Bank in Qatar and one of the safest Banks in the Middle East and Emerging Markets.

The Peninsula Qatar