Sherbiny Group to diversify

The Sherbiny Group to diversify into manufacturing

After several successive years of strong growth, the MH Sherbiny Group is looking forward to manufacturing as a step towards consolidating its position and making a greater impact on industrial life in Saudi Arabia and beyond.

Manufacturing will add a new dimension to the group’s operations the highlight of which has been trading in a range of vital products for sectors including oil and gas under the core company MH Sherbiny for Commerce (MHSC).

The group’s president, Mohammed Hassan Sherbiny, confirmed plans to manufacture industrial equipment. “Actually, we are discussing with a couple of our principals the idea of forming a joint venture for the assembly of rotating equipment in Al Khobar. We are also in the final stages of preparations for having a facility to start manufacturing industrial skids and systems that could fit many applications,” he said.

The first production facility could materialise within the next two years.

As part of the expansion and development plan, MHSC is building a huge new warehousing facility as well as building new office space and upgrading the service centre with electrical machinery for carrying out electrical repair jobs for motors and other electrical equipment, the company’s business development manager Majed Sherbiny said.

As well as MHSC, the group includes MH Sherbiny for Medical Services, Sherbiny for Real Estate Investments and Sherbiny Chemicals and Environment Solutions.

“Each of the four companies has specific characteristics that make it a profit centre by itself. What is common between them is the dedicated team of engineers and staff with vast experience. In addition, each company represents the highest quality of products,” commented Mohammed Sherbiny.

The group is a fully Saudi owned operation.

MH Sherbiny for Commerce provides electrical, instrumentation, mechanical and training products and services to oil refineries, the petrochemical sector, power establishments and desalination and sewerage industries in Saudi Arabia and other Gulf states on short and long-term contracts. Products the company markets are well distributed in Saudi Arabia and the GCC region.

Majed Sherbiny said several development steps had been taken during the past two years in the company’s best interests. There was machinery augmentation along with the recruitment of additional engineers to improve capability and take in more jobs. New trucks were added to the fleet for faster delivery. The company’s network was upgraded with new servers facilitating better communications between departments and facilities such as stores and the Service Centre. A new ERP system was added to improve order tracking, the revenue cycle and accounting for all activities.

“All these developments showed on the sales and performance figures at the end of last year and will continue to show in coming years,” Majed Sherbiny observed.
MHSC has a grip on regional developments on the commercial and industrial fronts, which is equipping it to better prepare for the future. “By understanding and studying all the surrounding factors that could drastically affect business, we make our plan accordingly to the market. This is carefully done by gathering all the inputs and making a good analysis of all the conditions and factors. This enables us to know our strengths and weaknesses as well as opportunities and threats,” commented the president.

The company has been adding new products to its range. Sometimes it is approached by firms to represent them. “Addition of new products is a very important tool to enhance the company’s market share and hence increase profits,” said Mohammed Sherbiny.

The origins of the group go back to 1986 when MHSC began operations with just two or three agencies.  1997 was the beginning of real growth and in the subsequent period it received a number of additional agencies as well as awards and recognition from various suppliers and customers.

The awards from customers highlighted the excellent performance of the products and timely delivery of supplies, said Mohammed Sherbiny.“Hard work, constant upgrading of company facilities and well-planned growth have led MHSC to this happy state of affairs,” said Mohammed Sherbiny, whose long experience in fields associated with the company goes back to more than 40 years.

“Each company has its own strengths and weaknesses. Our strengths lie in the teamwork we established from day one. This culture is very important for the success of any company. We were very keen to preserve this culture and teamwork. When we recruit new staff we ensure that they share the same values and spirit. Another of our strengths is the experience of our staff.”

Mohammed Sherbiny, who graduated as a mechanical engineer from Michigan State University, USA, says patience and dedication helped the group go through difficult days. That was in the period immediately after the Gulf war when everything seemed to have shut down and demand for industrial goods was low. “Patience, determination and focus helped our business to survive and grow,” he recalls.

As in many other companies, labour is a challenge to MHSC. “I believe the lack of skilled people to shop from and recruit for the company is the biggest challenge especially now when there is fierce competition between companies within Saudi Arabia and the GCC region to recruit the best staff they can find,” says Mohammed Sherbiny.
As vendor to Sabic and Saudi Aramco, two of the biggest companies in Saudi Arabia, Sherbiny feels MHSC is very much part of their contribution to Saudi industry.

The future looks good and bright not only for MHSC but also for Saudi industry, Mohammed Sherbiny says, particularly with the ”strong steps” King Abdullah bin Abdulaziz has taken towards growing the economy and devoting oil profits for economic diversification through the opening of new industries.