Jindal Shadeed Iron and Steel is taking many initiatives to promote SMEs in Oman. It places substantial orders to SMEs to supply various items for the plant and has plans to increase orders being provided to SMEs, says its CEO Naushad A Ansari.
What are the initiatives aimed at helping small and medium enterprises (SMEs) in Oman?
We are taking many initiatives to encourage SMEs by giving them opportunities to work for us. We have been placing substantial orders for the supply of various items required for the operation & maintenance of the plant.There is a strong potential for the growth of a thriving downstream industry created by the Jindal Shadeed complex.
Presently we are producing square and round billets/blooms. We would be producing rebars (8mm to 40mm), wire rods by end of this year. The supply of billets to downstream rebar mills can help spur the growth of the metals sector in Oman, while the supply of rebars has the potential to boost the construction sector.
We also see opportunities for investment of SMEs in downstream industries, such as rolling mills, forging units, pipe manufacturing plants, cutting and bending, and so on. There are good prospects for SMEs in supporting maintenance, repair, and other ancillary and workshops of Steel Industry.
What do you think is the potential of steel and other metal industries sector in Oman to provide impetus to the growth of SME sector? What are the major opportunities for SMEs offered by the steel industry?
Steel sector has a huge potential in providing the needed impetus to the growth of SME sector. Major Opportunities offered by Steel Industry may be noted.
Downstream Value added units:
Rolling Mills to convert Semi-finished Steel in to Finished products
Wire drawing Units
Industries based on drawn wire products
Cut & Bend Lines for Rebar
Fe Alloy Manufacturing Units
Scrap Supply trading Houses
Manufacturing & Fabrication units to
supply spares
Refractory supply units to cater to required refractory needs
Repair shops for reconditioning of Rolls etc.
Electrical motor rewinding and Electrical & Instrumentation repair shops
Transformer Repair Units
Various Contractors to service
Refractory Applications
Housekeeping of Plant & Premises
Maintenance jobs
Landscaping/greenery development jobs etc.
There would be a need for transporting substantial portion of Semi – finished & finished products and hence transport Industry would grow leaps & bounds
Garages for hiring & repair of trucks, cars, trailers, dumpers etc
Hydraulic workshops to repair hydraulic parts
How do you rate the competency of SME sector in Oman to utilise the opportunities offered by the steel industry? What more needs to be done by the SME sector to capitalise on the opportunities?
We find the competency of SMEs is moderate. To tap major portion of the opportunities offered to the SME sector, they need to proactively develop skills that are required for running the special needs of that particular field.
SMEs need to closely work with Steel Industry in identifying the needs and urgency. They also need to develop infrastructure facilities to take care of the specific needs of the Industry.
What is your opinion about the general scenario in SME sector in Oman?
The general scenario is very much encouraging. There is unprecedented support from the Government to develop SMEs. We also see a good enthusiasm in the entrepreneurs. This needs to be put in to practice.
What are the industrial sectors which SMEs in Oman need to focus?
Initially, SMEs in Oman need to focus on the following fields.
Downstream Value added units:
Cut & Bend Lines for Rebar
Scrap Supply trading Houses
Manufacturing & Fabrication
Refractory supply units to cater to required refractory needs
Repair shops for reconditioning of Rolls etc.
Electrical motor rewinding and Electrical & Instrumentation repair shops
Transformer Repair Units
Various Contractors to service:-
Refractory Applications
Housekeeping of Plant & Premises
Maintenance jobs
Landscaping/ greenery development jobs etc.
Transportation of Semi – finished & finished products
Garages for hiring & repair of trucks, cars, trailers, dumpers etc.
What are your future plans for the SME sector?
In 2014, we have placed orders worth $200mn on local suppliers; substantial portion is on SMEs only. This amounts to 49 per cent of total orders.
Orders for Raw material, mostly Pellets, in Oman amounts to 30 per cent. Services orders on Omani vendors are more than 92 per cent.
Our immediate target is to increase the share of SMEs in the placement of orders.
We would work closely with SMEs for the development of SME sector.
We would continue to support SMEs technically wherever possible so that they can take care of the requirement of Steel Industry.