14 August 2016
Muscat - As a result of intense competition from Asian suppliers and the decline in institutional orders in the sultanate, Oman Textile Holding Co said its group net loss widened to RO360,000 in the first half of 2016 from a net loss of RO245,000 in the same period of the previous year.
The company said it is considering all possible measures to reduce the potential impact of the slowdown in market sentiment with emphasis on developing products for government organisations and other institutional customers.
"There is immense competition in the wholesale and retail markets, from manufacturers in Asia who offer fabrics of comparable quality at much sharper prices due to their lower costs," Oman Textile said in its directors' report.
The company said it is continuing with efforts to expand its market base beyond Oman, and into the GCC. "The company is working with greater focus on developing high-value products. To provide more value-added services, emphasis is also laid on converted products catering to various corporate clothing requirements."
In a simultaneous exercise, Oman Textile added that due attention is being accorded to cost-optimisation.
Oman Textile owns two wholly-owned subsidiaries, Oman Textile Mills Co LLC and Oman Textile Trading Co LLC. Oman Textile Mills is engaged in the manufacture and sale of textile fabrics, and Oman Textile Trading is primarily engaged in holding investments and other trading activities.
The company's textile segment posted a loss of RO438,000 in the first half of 2016, while it recorded an income of RO78,000 from investments.