By Peter Alagos
Business Reporter
The first phase of Al Meera Consumer Goods Company’s 91,000sq m logistics facility south of Doha, which will help expand the product and brand offerings in the domestic market, is expected to be completed in the next two years, deputy CEO Mohamed Nasser al-Qahtani told Gulf Times.
“Subsequently, we will have phases two and three,” he disclosed on the sidelines of Al Meera’s Annual General Assembly Meeting yesterday.
Al Meera, which has a strategic partnership with Regency Group Holding and Aramex Regional, incorporated Aramex Logistics Services to manage the company’s logistics and supply chain processes.
Al Meera’s chairman Abdulla bin Khalid al-Qahtani explained during the meeting that “the logistics distribution centre’s initial phase will include a 20,000sq m warehousing facility, with plans to quadruple the warehouse in the future phases”.
The centre will provide a variety of value-added services, including third-party ambient temperature warehousing, third-party temperature controlled storage, and other logistical services like domestic trucking, customs clearance, and express and freight services.
“Aramex Regional will bring to the venture its know-how and logistics systems and will be charged with the day-to-day management and operation of the facility,” he said. To page 8
From page 1Al Meera deputy CEO Mohamed Nasser al-Qahtani explained that the move to build the facility was more of an integration plan rather than an expansion project.
“We are talking about vertical integration, where logistics is part of the activity that we would like to integrate in our core business because we are using permanent logistics, hence the establishment of the facility. It is not an expansion project but rather, part of our core business,” he stressed.
Asked about the impact of the logistics facility on Al Meera’s operations, the deputy CEO said: “The logistics facility will not affect our core business. Today, logistics is only a cost to the company, and tomorrow, it will be more than just simply a cost, it will be part of our core business. We secure our logistics and the quality of our services so that we can enhance the global services we are providing to the company.”
He said: “It is not a matter of improving profitability, but rather to improve the services among the different branches of the company.”
Also during the meeting, the assembly approved the board of directors’ proposal on the distribution of cash dividends of QR9 per share, which is equivalent to 90% of the nominal share value for 2014.
Al Meera’s net profits grew 15.5% or QR226.6mn in 2014 compared to QR196.1mn in 2013.
Mohamed Nasser al-Qahtani: Al Meera deputy CEO.
