Asyad plans acquisitions, branding exercise to push growth

Muscat - 

In tune with its objective to push the growth of logistic business in the country, state-owned holding firm Asyad Group, plans to go for an aggressive branding exercise in 2019 to attract potential investors, and is also looking at acquiring logistic solutions providers for an inorganic growth.

“We are working closely with our partners to push growth of logistic sector in the country. And for that we have identified number of measures, which would be taken in future,” Asyad Group chief executive officer Abdulrahman Salim al Hatmi told Muscat Daily in an interview.

He said, “In 2019, our focus would be on two main things - making a head start about marketing initiatives, which means going to our customers or the potential investors, and encouraging them to come and invest in Oman. This will require concentrated efforts on branding Oman as one of the attractive destinations for investments across the region and beyond that. Our intention is to make people aware about Oman and Asyad.”

“Second major thing which we would be looking at is acquisitions. We are mainly looking at potential buyout targets in two main sectors, these are 3PL and 4PL companies,” Hatmi said.

Third-party logistics providers or 3PL firms are engaged in the business of providing outsourced logistics services such as inventory storage and management, picking and packing and Freight forwarding where as Fourth-party logistics providers or 4PL are companies engage in managing resources, technology, infrastructure, and provide supply chain solutions for businesses.

Explaining the rationale for acquisition Hatmi said, “There are two ways to grow your business, either through organic route or inorganic route. We are taking inorganic route to expand our services.”

He, however, declined to give details about the potential size of the business saying that they are talking to a number of players and things are at a very early stage.

On future plans to push for the logistic sector growth in the country, Hatmi said, “We are working very closely with our partners to get right volumes, right cargoes destinations for our ports. We also need to link ports, freezones, and airports, with integrated logistic solutions for tracking.”

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