Hamid Hamirani - Established Turnaround Player
Dhofar Cattle Feed – The largest publicly listed agribusiness in Oman by asset size, production capacity and revenue. Against all the odds and contrary to general beliefs of many large investment houses, Hamid turned around the dairy and beverages business in less than three years by redesigning the business model which broadly involved:
- Completely re-engineered the costing model which focused on establishing the cost first and overhead optimisation through increased volumes, and then redistributing the profits to each segment thus fostering autonomy in individual segments of the business resulting in success, motivation and performance reward.
- Changed the focus of support services like procurement so the equipment was available when the crop was ready to harvest rather than crop was harvested only when the equipment was available.
- Revolutionalised the internal audit function to create a dash board management reporting system focusing on milk and crop yield, mortality, food conversion rations, production and packaging wastage and sales expiry.
- Buying of grains when the prices were right rather than when the stock ran out.
- Vertical integration by establishing in-house bottling facilities.
- Focusing on customer service and quality of product.
- Working with leading international and local banks at each step to validate the model before executing it.
The model holds true even now and resulted in:
- Profitability increased by 400%.
- Volumes quadrupled.
- Crop and milk yield improved by more than 300%.
- Financed deals with leading banks for the Capital Investment purely on asset based financing with competitive rates ( .40 basis points less than LIBOR ).
- Transformed Information Technology and won the PAN ARAB Gold Award for 2006.
