Almasa IT Distribution FZCO

Chairman & CEO: Mehdi Amjad

Tags: Almasa IT Distribution FZCOChannel Middle East Power List 2010KuwaitQatarUnited Arab Emirates
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Almasa IT Distribution FZCO Chairman & CEO: Mehdi Amjad
By  Jonas Published  March 28, 2010 Channel Middle East Logo

Contact: +971 4 306 3100
Website: www.almasa.com
Headcount: 200
Active Accounts: 1,200
Regional Offices: Kuwait, Oman, Qatar, Saudi Arabia, UAE
Key Brands: Acer, Asus, Avaya, Belkin, Blue Coat, Extreme Networks, Hitachi, HP ProCurve, Imation, Microsoft, Seagate
Ownership: Almasa IT Distribution belongs to the privately-held Almasa-Omniyat group of companies
2009 Sales:
US$355m
2008 Sales: US$440m (Verified)

What measures have you taken to ensure your company remains competitive?

Cost control has been a major focus for us and will continue to be this year. I think distributors have to keep looking at how they can deliver the same quality with less cost and more efficient processes. Every aspect from your inventory days and receivables to the way you manage your location points has a direct impact on your bottom line.

The other thing is credit management and being closer to customers so you can provide competitive propositions to them while managing your credit risk. We were much tougher in terms of our credit policy and credit-giving in the market place and I think that was a good decision.

What are your main strategic plans when it comes to developing the business in 2010?

2010 will be very much about focusing on the retail and value side of the business. We’ll become closer with HP ProCurve, Avaya, Extreme and Blue Coat and we’ll even try to look at new vendors within the value side of the business. On the volume side we’ll get more into finished goods than we used to.

Two months ago we started the monitor business with Acer across the region and that is going very well. Potentially we may add more vendors in the display and LCD area, as well as on the notebook side. With our big warehouse in Jebel Ali now open we are also revisiting our warehousing strategy; trying to centralise more and having logistics solutions to reach customers faster.

Company focus

Almasa’s business stands on three core pillars - retail, networking and channel - and recent vendor partnerships reflect this focus. WatchGuard and Ericom have both been signed this year, signalling Almasa’s desire to capture brands that can enhance the profile of its value division. Having gained a solid retail-focused venture in the form of Delta Business Products, Almasa is also emerging as a serious contender in the retail space where it now distributes many influential consumer brands.

Channel Middle East Verdict

Almasa still retains a strong market position following a year that saw it both lose and gain major vendor franchises, as well as complete the acquisition of Delta Business Products. The reduction in its sales is largely due to the termination of its relationship with HP, which had previously accounted for a whopping 45% of its business — some US$200m a year. Take that out of the equation and Almasa clearly managed to grow many of its other vendor lines, while also reducing its cost base.

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