The
main objective of this report gives an analysis view of the financial position
of the company and give a competitive view of the company according to the
market situation. The report is also based on the financial information of the
company during the past five years with the financial analysis and financial
position of the company. There is also a discussion about
competitor’s
position in the market. There is a section that describes the issues which are
related to affect the company’s position in the current market. There is a portion
of the study which describes the financial analysis of the company as relevant
to the cost of total project in the past and current market. The study is
related to the market analysis of Hayat Water Company and in the end, there is a
conclusion and recommendation section about the company according to the market
and competitor’s situation (S. Jaffar Abdul Khaliq, Ahmed, Al-Wardy, Al-Busaidi, & Choudri,
2017).
Introduction of Haya Water Company
Oman
Haya
Water is an Oman based wastewater company which was established in December
2002as a joint-stock company. The possession was wholly owned by the government
of Oman. Haya water is also awarded by the government of Muscat as the best
company to develop, design and implement the project of wastewater under the
Royal decree to facilitate the Muscat. The basic purpose of haya water is to
reuse wastewater from historical time. However, the project of reuse of the
water is gaining importance before some decades who are increasing with the
demand of population and daily need of the water which put a great impact on
the natural water cycle of the region. There are several benefits to use these
resources to save water for the next generation. The U.S. Environmental
Protection Agency (EPA) refers to the term wastewater as, “using wastewater or
reclaimed water from one application for another application”. In Oman, haya
water is a government based company which are dealing in operating the plant
which is engaging in the reusing of water (M. S.
Baawain & Sana).
The
basic purpose of a company is to make Oman a company with a high standard of
health and cleanliness. This could be possible if there is a proper system of
sewerage to overcome the disease in the country. The secondary purpose of the
company is also to reduce carbon dioxide emissions in the water. Haya water
seeks to get the benefits of planning about the area which executes the plan in
the different areas of Muscat. The basic purpose of the Haya water is to get
the goals set by the management to manage the wastewater to make Oman a healthy
and green economy. The company had signed an agreement with the government for
30 years which will end in 2036. The services provided by the companies are
sewage treatment plants (STP), pumping stations, bio-solid composting and
yellow tanker services in Oman. The main strategy used by the company is
treated effluent in past years. The research shows that there six possible
options to make the effluents from wastewater through yellow tankers such as:
Urban
wastewater
Agriculture
reuse
Groundwater
resource
Industrial
reuse
Power
center
Ø Moveable
resources
There
are approximately 653 employees are working in the haya water company. The
company is working on different projects to get the ultimate success in the
work. The company is working on the project of KPMG to project a plant as
globally operated by the multinational company. The signing contract takes
place at Bait Haya. The plan is estimated as the treatment of wastewater will
be targeted as a yellow tanker with the initial capacity of 40,000 cubic meters
per day with the estimated cost of OMR 47 million. For this purpose, all yellow tankers are
directed to use STP which will give a positive impact on the project. Besides
this, there are products such as the manufacturing of Kala compost which is a natural
resource to compiles international fertilizer. Other services include vacuum
tanker service, sewer blockage service and central laboratory (M., Sana, & Al-Yahyai, 2012).
Key financial
information of Haya Water Company Oman
The
financial position of the company could be determined by checking the growth of
the company as the number of properties is determined by the growth of the
properties which is owned by the company for the last 5 years. The financial
growth could be determined as:
The
ultimate financial position shows that the company is growing at a rate that is
determinable as it is growing fast. The properties which are owned by the haya
water are growing at a higher rate.
Competitors analysis of Haya Water
Company Oman
The
condition of the company is based on the financial growth of current market
analysis which shows the relative increase in the production and net revenue of
the company. The competition was held by the haya water which was represented
by the general directorate of Oman. The competition was between the different
organizations which believe that this competition will be helpful for the
improvement of the environmental situation of the country. As competitors view
there is cost analysis of the Jordan and Tunisia which shows the compatibility
in terms of tariff:
Tariff/Cost
of the project
|
Jordan
(US$/CM)
|
Tunisia
(US$/CM)
|
TARIFF
|
0.0-0.09
|
0.014-0.08
|
Transfer cost, rent, and operational
cost
Total cost with depreciation
|
0.04-0.012
0.10-0.21
|
o.09-0.14
.13-.25
|
Treatment cost
Operational cost
|
0.02-0.34
0.05-0.95
|
0.03-0.17
0.04-0.93
|
The
operating and distribution cost of the Jordan and other competitors is stable
in the market which gives competition to the haya water, but the cost is more
likely to increase with the change in time and project of the new plan. Haya Water
is a government based project which has a strong position in the market and has
the power to compete with the competitors. The increasing cost of other
companies is providing a basic competitive advantage to the haya water. The maximum
internal costs contain the construction of a wastewater system as well as the
operation and maintenance costs. The construction of new plans such as material
and labor costs is equaled to73,300 (1 USD= 42.5 INR) and operation cost is INR
7725 per year. Internal advantages were estimated to be INR 60,000 per year due
to the reduction in wastewater. The analysis shows that the advantages are
exceeding the cost of the project which is a contribution in the plan of
wastewater project by the government of India (A. Rivera, Al-Shaiily, Daag, & Al-Amri, 2012).
Projection
of wastewater from the year 2101 to 2025 (m3 /day):
Years
|
2010
|
2015
|
2020
|
2025
|
Quantity
of wastewater produced
|
64,920
|
152,298
|
226,334
|
257,344
|
The
effluent is being generated by 11 different STPs located in al Ansab, Darsait,
Shati Al Qurm, Al Mabellah, Al should, Al Amerat, Bawshar, Al Manuma, Quriyat,
Madinat Al Sultan Qaboos and Jibaro. The wastewater of domestic and industrial
is generated in Muscat is directly disposed into the sewage networks or
gathered in individual tanks which are later discharged in the sewage network.
As
concerned with the PESTEL analysis of the haya and other competitors are
relates to the performance of the water industry. The PESTEL analysis is
described as follows:
Political analysis: the
political condition of any country affects the business condition of this
country which is collected with the situation. Where the political condition is
stable the business is most likely to groom and vice versa.
Environmental analysis: the
environmental analysis relates to the business environment which occurs in the
business market with the market forces.
Social analysis: the
business should be engaged in the social responsibilities which are working for
the welfare of society.
Technological analysis: business
should use new and advance method of technology to overcome the cost and human
effort which increase the efficiency of the business.
Environment analysis: the
surrounding of the company and any business affects the performance of the
company. The bottling companies are needed to take a review of the production
of the company in an accumulated way.
Legal analysis:
legal formalities are used to the welfare of the business and to fulfill the
legal requirement of the business (S. Zekri, Al Harthi, Kotagama, & Bose, 2016).
Key issues faced by
the company of Haya Water Company Oman
The
CEO of the Haya water discussed the issues which are related to managing the
wastewater in the recent addressed in the Wilayat of Masirah and explains the
development of the project plan in Oman and Muscat. He explained the issue that
wastewater is this project plays an important role in the infrastructure of the
country but it requires a lot of finance to deal with that project which is
totally based on welfare work and work as a non-profit making organization. The
condition of the company is based on the financial growth of current market
analysis which shows the relative increase in the production and net revenue of
the company.
Another
challenge is that the haya water is dealing with the projects which were
governed by the ministry of municipal authority which was covered by the haya
water and now focusing on the repair of the damaged sewage system. It is also an
important issue to deal with the alternative goals which are protecting the
groundwater and overcoming the use of high-cost water desalinated water which
reduces the margin of the company. The issues faced by the haya water are
mostly capital nature type which is not resolved in the short term, therefore,
its projects are being in process for the long term.
One
of the other challenges faced by the haya water is the technology used in the process
to produce high quality of output especially in the Viable Helminth Ova
parameter which is difficult to measure. As there are limited resources to use
the technology in the reuse of water. Another issue is that advanced technology
is high cost-oriented which is a big challenge to solve. There is also
difficulty in finding the customers to utilize the water in new high quality
which is required to maintain the compatible advantage of wastewater.
References of Haya Water Company Oman
A. Rivera, Al-Shaiily, M., Daag, A., & Al-Amri,
M. (2012). DIVERSITY AND DIMENSIONS OF NEMATODE OVA: A TOOL IN WASTEWATER
MANAGEMENT. Journal of Applied Sciences in Environmental Sanitation,, 7(1).
M. B., Sana, A., & Al-Yahyai, R. (2012). Sustainable
and Beneficial Options for Reusing of “Haya Water” Treated Wastewater: Phase
1–Exploratory Study.
M. S. Baawain, & Sana, A. (n.d.). Feasibility of
treated wastewater application for aquifer recharge to defy saline water
intrusion.
S. Jaffar Abdul Khaliq, Ahmed, M., Al-Wardy, M.,
Al-Busaidi, A., & Choudri, B. S. (2017). Wastewater and sludge management
and research in Oman: an overview. Journal of the Air & Waste
Management Association, 67(3), 267-278.
S. Zekri, Al Harthi, S., Kotagama, H., & Bose,
S. (2016). An estimate of the willingness to pay for treated wastewater for
irrigation in Oman. Journal of Agricultural and Marine Sciences [JAMS],,
21, 57-64.