Alghanim Industries and BP have been steadfast allies for 42 years. outlook talks to Alghanim chief Samir Kasem to find out the secret of their partnership's success.
BP and Alghanim Industries have come a long way since the two parties signed their partnership agreement in 1964. For BP, the association with a local company reinforced its presence in Kuwait, even though it has been operating in the country since the 1930s. For Alghanim, it was an opportunity to broaden its reach worldwide. Not that it needed international exposure. Prior to its collaboration with BP, it already was a key player in Kuwait's economy and has alliances with other multinationals.
Alghanim's major areas of activity are trading/ distribution of consumer electronics, food/consumables, automotive, industrial manufacturing, engineering, technology, travel, shipping/transportation, advertising, insurance and contracting. With its wholly owned subsidiaries, joint ventures and associations, it employs over 6,000 people from over 40 countries and has offices in four continents.
Samir Kasem, Alghanim's general manager, views the BP-Alghanim partnership as a historic one, as "it was Alghanim's first ever acquired agency."
The customer range spans retail, commercial and industrial entities, with Kuwait as the focus market.
"We hold an extensive coverage of the country and currently control two HUBs: one in Al Rai and the other in Al Jahra," he affirms.
Alghanim is the exclusive distributor for BP lubricants in Kuwait. The range of products includes motor oil, and a wide range of applications for commercial and industrial use. Despite the competitive nature of the market, Alghanim has the highest market share in the lubricants sector in Kuwait, with an impressive 23.5% share. "We are ranked as number one among all the international brand names sold here," claims Kasem.
Through Alghanim Transportation Services' position and connections, the group also provides support services to offshore oil and petroleum, marine construction and other ocean-related projects. In the midst of its many industrial offerings, Alghanim is ever mindful of its corporate social responsibility. It is the only lubricants company in Kuwait that offers in-house Health, Safety and Environment training.
The Alghanim-BP partnership aligns both the companies' objectives. "We pride ourselves in keeping excellent relationships with all our customers, especially the government sector," asserts Kasem.
We asked him how the partnership works. "We have a direct prosperous relationship with BP's regional office in Dubai," he replies. "We have regular visits by BP's area manager and technical manager.
We also periodically send our personnel to Dubai for field training, plant visits and exhibitions."
As for conflict resolution, we asked Kasem if they used BP's external policy and Alghanim's local procedures. "We tackle pending issues as swiftly and efficiently as possible in order to keep our customer satisfaction level in constant progression," he replies.
"We resolve conflicts within our division through well-defined roles and procedures. Everyone knows his/her exact role within the division and we all work as a team."
We wondered how Alghanim has been able to sustain its 42-year alliance with BP. "We try to align our goals with BP's objectives at all times," attests Kasem.
"This is the secret of the success of this partnership."
He also cites the unification of Alghanim's and BP's customer-centric approach: "We uphold the same values and principles in our day to day business operations, which cover: exceeding customer expectations through investment in sales training and state of the art equipment and our 'no stock out' policy. We hold a three-month guaranteed level of stock for all product ranges."
Part of Alghanim's purpose is to ensure the multinational aspect of BP fits in with local market requirements. "For features such as packaging and labelling, however, we have to abide by some local governing laws," he explains.
Looking to the future, Kasem says of the Alghanim-BP alliance: "We are confident that both our professional and personal relationship will only get better." Having successfully fused progressive business procedures, local expertise and international resources, Alghanim has proved to be a worthy ally for BP. Together, they continue to add value to the economy of Kuwait.
© Outlook 2006
