22 August 2011
MUSCAT: Galfar Engineering and Contracting, the biggest contracting firm in the GCC region, is forming two companies -- one for producing ready-mix concrete and another for undertaking small contract works.
The first company, Unibeton-Galfar Ready Mix, is a 50:50-joint venture between the Omani firm and UAE's Unibeton Ready Mix. "This company will produce ready mix concrete for our own use and for supplying to other companies. We will get expertise from our UAE partner. This will help to bring down our cost of production," Dr P. Mohammed Ali, vice-chairman and managing director of Galfar Engineering and Contracting told Times of Oman.
"We will transfer some of our existing batch plants to the new company, which will depend on our spare capacity."
He said there will not be any major investment in these companies as Galfar is planning to bifurcate its existing assets to these two entities. Referring to the second company -- Aspire Projects and Services -- Mohammed Ali said it is aimed at undertaking small contract works.
"We have some old clients, who have some small contract works. We don't want to engage our entire Galfar team for these small works. We need a lean structure for small projects," he explained.
Aspire Projects and Services is a subsidiary of Galfar Engineering, with 99.9 per cent held by the parent company. Both these firms will commence operation soon.
Meanwhile, Galfar's net profit for the first half of 2011 rose to RO2.68 million, from RO1.59 million during the corresponding period last year. The company recorded a total income of RO166.61 million, which is against RO175.23 million for the same period last year. The Galfar chief said his company's performance outlook for the second half looks better.
Asked on whether the government has taken any decision on reimbursing additional cost arising from salary revision of Omani workers early this year, he said, "It is still under process. The government has not taken any decision." He said in March that the additional cost arising from the minimum salary and wage revision for his company is estimated at RO1,150 per employee per year.
Galfar has completed the EPC activities for the prestigious Indore-Ujjain road and entered the toll collection phase of 25 years, which include the construction period. The execution of Ghaziabad-Aligarh road project continues in full swing with completion scheduled in two years. The operation and maintenance of the Chandikole-Bhubaneshwar road has been started and would last for the duration of the concession.
Considering India's requirements for infrastructure, Galfar Engineering & Contracting (India), the wholly-owned subsidiary of Galfar Oman continues to concentrate on roads infrastructure projects.
MUSCAT: Galfar Engineering and Contracting, the biggest contracting firm in the GCC region, is forming two companies -- one for producing ready-mix concrete and another for undertaking small contract works.
The first company, Unibeton-Galfar Ready Mix, is a 50:50-joint venture between the Omani firm and UAE's Unibeton Ready Mix. "This company will produce ready mix concrete for our own use and for supplying to other companies. We will get expertise from our UAE partner. This will help to bring down our cost of production," Dr P. Mohammed Ali, vice-chairman and managing director of Galfar Engineering and Contracting told Times of Oman.
"We will transfer some of our existing batch plants to the new company, which will depend on our spare capacity."
He said there will not be any major investment in these companies as Galfar is planning to bifurcate its existing assets to these two entities. Referring to the second company -- Aspire Projects and Services -- Mohammed Ali said it is aimed at undertaking small contract works.
"We have some old clients, who have some small contract works. We don't want to engage our entire Galfar team for these small works. We need a lean structure for small projects," he explained.
Aspire Projects and Services is a subsidiary of Galfar Engineering, with 99.9 per cent held by the parent company. Both these firms will commence operation soon.
Meanwhile, Galfar's net profit for the first half of 2011 rose to RO2.68 million, from RO1.59 million during the corresponding period last year. The company recorded a total income of RO166.61 million, which is against RO175.23 million for the same period last year. The Galfar chief said his company's performance outlook for the second half looks better.
Asked on whether the government has taken any decision on reimbursing additional cost arising from salary revision of Omani workers early this year, he said, "It is still under process. The government has not taken any decision." He said in March that the additional cost arising from the minimum salary and wage revision for his company is estimated at RO1,150 per employee per year.
Galfar has completed the EPC activities for the prestigious Indore-Ujjain road and entered the toll collection phase of 25 years, which include the construction period. The execution of Ghaziabad-Aligarh road project continues in full swing with completion scheduled in two years. The operation and maintenance of the Chandikole-Bhubaneshwar road has been started and would last for the duration of the concession.
Considering India's requirements for infrastructure, Galfar Engineering & Contracting (India), the wholly-owned subsidiary of Galfar Oman continues to concentrate on roads infrastructure projects.
© Times of Oman 2011
