Maxim Investment Group (MIG), during a press conference held at the Kempinski, rolled out its new action plan that will serve as a catalyst for the transformation of the company. The plan seeks to prioritize markets where the company can be relevant and grow sustainably in the long term, boost its growth potential while leveraging the value of its infrastructure, and increase agility and improve efficiency. To this Dr. Mohamed Karrar, Chairman of MIG, said that the “macroeconomic and market realities, and high competition in the market require an increasingly demanding allocation of capital. If in the past the low penetration of services assured future growth, the current maturity of the market and the appearance of new competitors subject to different rules demand a highly focused strategic approach.”
The changes come at a pivotal time for MIG whose portfolio is estimated by Financial Consultants, accredited by the CBE, at the 15 billion range. The Group has grown at an exponential rate over the past decade bringing with it operational inefficiencies as by product of a rapid growth focused strategy. The transformation initiative, which commenced 2019, tackled the problems of suboptimal performance with the objective of driving rapid change, delivering improvements in cash, working capital, and profitability. The roll out includes consequential decisions in short order—rapidly modifying business models, accelerating digital transformation, seeking out new revenue streams, moving or re-thinking operational activities, entering new product or markets, and improving customer experiences.
“The pandemic” says Karrar “ has added a layer of challenges to that process as we , were forced to slow down the roll out and consider the implications on our strategic priorities moving forward”. Covid 19 has brought about profound change, affecting long-standing consumer behaviors and preferences, and in some cases permanently changing competitive landscapes. Nevertheless “during the past two years, we have made meaningful progress and opened the door to becoming a vibrant, profitably growing company,” With a plan adapted to reflect the new market realities Karrar believes that “Now it’s time to charge through that door.” The aim will be that by the end of 2022, Maxim will reposition its overall cost structure to establish itself as a strong and efficient competitor.
These measures will generate, among other effects, additional revenues and an increase in operating cash flow margin by 2022.