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Change in guard

A new CEO at the helm and a sales growth of 56 per cent in the first quarter 2007 as compared to Q1 2006, it’s time to watch the Al Hashar Group. An interview with BusinessToday

Werner Koch, CEO, of Al Hashar Group of Companies has been in the automotive industry since he was 17. In a country where the automotive sector is one of the biggest revenue earners for the private sector, the new CEO's skills may come in very handy. In Oman earlier for a five year stint, leaving as general manager of BMW in 1990, Koch is back and this time with a bigger challenge on his hands. His varied experience in industries ranging from health to jewellery and his human resources focused strategy is expected to take the group to a new level. At a time when the Oman economy is booming, Koch couldn't have planned his return better.

Which areas of business would you, as the new CEO, like to address first?
Change indicates development and at a macro-level of the Al Hashar Group we are changing in the right direction by expanding in terms of business volumes, increase and improving professionally in manpower, strategic development of existing infrastructure, diversification of business and many more to share. These changes have resulted in a remarkable and progressive growth that is evident by our first quarter 2007 sales growth of 56 per cent as compared to the last year first quarter sales turnover.

As a division, the passenger car and SUV segment is a crucial area that we would like to concentrate on since it grabs a big market share of the complete automotive business in Oman. Even with the recent very sad experience with Cyclone Gonu, Oman is booming in the construction and infrastructure development industry and to cater to this industry we have the Heavy vehicles & Construction Equipments division, which is again on the priority list.

What are the main challenges that you expect to face in the next year?
Fresh in mind is Cyclone Gonu that has left some stains which we are dealing with and would complete within a couple of months. Some of the main challenges are to complete the renovation of Sheraton and re-open it by November 2007. To implement highly advanced HR policies and procedures with the help of a professional organisation to make the best team at all levels, focused to work together in harmony to achieve the company goals. Another is to control and manage the operational costs of the company economically.

Then, a growing business demands skilled labour in its respective spectrum and thus we are working towards driving Omanisation. Finally, the Al Hashar Group plans to initiate further business diversifications, which is again a part of the strategic expansion plan.

You have said that your present aim is to build a strong team to be prepared for additional business and challenges ahead. How do you plan to go about this?
The main challenge is the HR implementation I mentioned earlier. All the functional departments will be structured with proper job description, responsibility and accountability. This would build a focused role for every employee and encourage training at every interval on job enrichment and multi-tasking keeping their motivational levels high.

You have extensive experience in the automobile industry. How does the Oman market compare to others?
Each market has its own dynamics. The Sultanate of Oman has its own economics and cannot be compared with any of the countries that I have been working in over the last two and a half decades. I was here in Oman as general manager of BMW from 1985-90, so I do know the country and its people and I never lost contact with the Omani market. Since then the sultanate has strongly and very steadily progressed and developed. Looking at the current investment programme for the civil ministries during the Seventh Five-Year Plan 2006–2010, it seems that Oman’s econo-mic future is very bright.

How is Geely performing and what are the plans for this brand?
Geely, as a brand has done much better than our expectations. Geely cars have proven themselves in the hot weather conditions of GCC and the latest models are far improved over the previous ones. Presently Geely, along with other Chinese passenger car manufacturers who are represented by us, are awaiting conformity certification from GSO, Saudi Arabia, for fresh imports into Oman and GCC. We will get new models of Geely vehicles since we have represented them in this market for almost three years now.

Do you see new automobile brands being added to your portfolio in the near future?
Definitely, the sky is the limit. There is always constant movement within the international automobile industry and in its organisation and distribution channels. Our 34 years of presence as well as having the infrastructure all across Oman and the expertise in the automotive sector definitely gives us the required edge. We are in contact with international automobile brand names to convince them that we are an experienced, potential partner for their brands.

What is your vision for the group?
To be the top-most preferred company / brand for all its products and services by the public in the Sultanate of Oman and to contribute utmost to social welfare and the economy of the nation.