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O’Gara ... wise investment

O’Gara ... wise investment

Despite oil price fall SNSI sales increase

The company, a leader in manufacturing high-capacity vacuum loading equipment, emerged successful because it had invested in efficient performance

Bahrain-based Sarens Nass Smet Industries (SNSI), a leader in manufacturing high-capacity vacuum loading equipment, has seen its sales increasing despite the business downturn caused by falling oil prices, which has hit badly similar industries.

The company, a joint venture of Bahrain’s Nass Group of Companies and international players Sarens Cranes and Smet Jet, emerged successful because it had invested in efficient performance, says SNSI managing director Frank O’Gara.

"The pressure on the oil price is encouraging a natural selection. Only companies investing in efficient performance have a chance to survive. Therefore, the ones performing efficiently from the start are still profitable and taking over from the ones failing," he says.

"Several large and leading companies, in our segment, are suffering, even losing, caused by tumbling margins and inefficient performances," he says.

The natural selection has given /is giving SNSI and its partners/customers the opportunity to increase sales, he says.

The Middle Eastern region has traditionally been a profitable market for foreign companies. Boom times when the price of oil was high ensured that it was never a priority to work or live efficiently. The differences between purchase and sales were huge and the demand on the market was always higher than what was offered. That created a Middle Eastern oriented business model, not concentrating on efficiency and cost savings, but still generating big profits.

The Super Sucker

Things have changed now and the low oil price situation has pressurised companies to be more competitive and efficient, he says.

"Our philosophy revolves round constantly searching for better, faster, safer and cost savings. This would not have been possible, had we neglected efficiency," he says adding that the company makes its products using European knowledge but tailored to Middle Eastern conditions.

Its popular vacuum loading equipment The Fluid Vacuator is known in local terminology as "The Super Sucker".

SNSI has, through its partnerships and service centers, set up fully equipped workshops in all industrial cities in the GCC.

In Bahrain, the company has two production plants – one in Sitra, which actually started as a temporary plant, and a full-fledged facility at the Bahrain International Investment Park (BIIP) with an annual capacity of 100 units.

"It is our responsibility to maintain the units, which have been sold, during the first year and assist, the customer’s maintenance crew, in the following years. The units are protected with Dummy-Proof systems which are specific and unique for the region," says O’Gara.

SNSI also buys all its machines back after seven years at 30 per cent of the purchase value whenever they are replaced by new machines.

"To convince our customers of our urge to partner with them, we offer friendly financial conditions to balance cash flow with depreciation time. Our product is well selected, solid quality, reliable after sales supported and built with Middle Eastern Pride," he adds.

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