Case Study : Business Today - Nov 2007 

Al Anwar Holding prides itself as a pioneer in industrial ventures in Oman. Starting operations In 1994, the company Invested in a number of companies like NAPCO, Al Anwar Ceramics and Majan Glass. "It was a phase when the country wanted to diversify its economic base. But since these Industries are cyclical in nature.

There were lean periods and with shareholders who expect constant returns there was a need to take care of periods of prolonged recession: says Krishna Kumar Gupta. CEO, Al Anwar Holding.

As a number of its investments turned turtle, the company sold off loss making ventures like Al Anwar Ceramic Tiles, ONlC, Computer Stationery and Majan Glass. It has reinvested its proceeds in companies like Falcon Insurance and AI Maha Ceramics.

A new management has been brought In and Al Anwar Holding is trying to position itself as a private equity company. 'The company is willing to exit any of its businesses at the right price, in order to provide returns to its shareholders. In fact, the company has formulated a new strategy wherein it will invest only in those projects that have an Internal rate of return (IRR) of over 15 per cent and it will not own more than 20 per cent of the equity of any Investment going forward," says a Bank Muscat report.

It sold Its stake In Oman Abrasives for RO 643,000 in 2006.Thls was followed by a sale of its stake in Al Anwar & Blank for RO 252,000. These accruals have enlarged the company's bottom line. Its net profit for 2006-07 jumped 450 per cent to RO 2.16 mn. Al Anwar hopes to double its asset size of RO 39.23 mn in the next three years and expects to grow its profits by 25 per cent CAGR (cumulative accumulated growth rate).