What motivated you to establish Sarooj Water in Oman?
Founding Sarooj Water was the result of a thorough market analysis. We found that the Omani market was heavily dominated by imported water, especially from the United Arab Emirates, Bahrain and Saudi Arabia. Although there were some local providers, none could compete with the imported brands in terms of production capacity or pricing.
In addition, the prices for imported water in Oman were very high. Consumers sometimes paid between two and two-and-a-half US dollars per carton. This not only seemed like an economic challenge to us, but also a clear opportunity. Why should Omanis continue to depend on imports when, as our analysis showed, it would be possible for local production to meet the highest quality standards?
Our motivation was therefore twofold: firstly, we wanted to establish a strong Omani brand that could compete with imported products, and secondly, we wanted to offer consumers a better price by producing efficiently and with optimised cost structures.
How has your company developed since it was founded?
We started very small. The first production line had a capacity of 25,000 bottles per hour – rather modest for the water industry. It began as a pilot project, a marketing test to see how our products would be received.
We soon saw that our strategy worked. Within a very short time, we established ourselves as a leading provider of small bottle sizes. Today, we produce 118,000 bottles per hour, and, despite this enormous capacity, we are sold out. Demand far exceeds what we can supply, so we have already ordered an additional line that will add another 155,000 bottles per hour.
This rapid success would not have been possible without the efforts of our strong team. Our parent company, Mohammed Riaz & Partner, has been active in Oman since 1997 and has a broad network of business contacts. We were already one of the largest importers of food, especially poultry, and therefore had good relationships with the major retailers. These connections helped us to quickly get our water into the supermarkets.
How would you describe your company’s philosophy?
We take a holistic approach. Our goal is not just to sell water, but to create maximum added value for the consumer. This includes a focus on giving consumers good value for money as well as the continuous improvement of our processes.
When we started out in the water business, one role model for us was the US company Niagara Water. It’s a family-run company that has grown over the years by focusing on efficient production, innovative packaging solutions and close partnerships with suppliers. A meeting with the Peykoff family, Niagara Water’s owner, cemented my approach: focus on one product, one lightweight bottle and mass production.
To achieve our goals, we rigorously pursue the optimal use of all resources. We use the latest technologies to minimise water consumption in production and continuously develop our bottles to reduce the amount of plastic they require.
How does Sarooj Water differentiate itself from other water brands in Oman?
There are around 43 water brands in Oman, produced by more than 30 companies, so the competition is intense. We have deliberately focused on the 250 ml bottle segment and established ourselves as the market leader here.
The trend is clearly towards smaller packaging sizes as they are more practical and hygienic. Our strategy is to remain number one in this segment while expanding our production capacity to open up new market segments.
Which markets do you currently serve and which new markets are you interested in expanding into?
Oman is our main market – we sell 80% to 90% of our water here. However, we already export to the United Arab Emirates, especially Dubai, Abu Dhabi and Al Ain. Our products are available in most major retail chains.
There is a huge demand from neighbouring countries. We are constantly receiving inquiries from the UAE and Kuwait, but our current production capacity is not yet sufficient to fully serve these markets.
The new production line will significantly increase our exports. Over the long term, we also see potential in Saudi Arabia, which is one of the largest markets in the region.
What is Oman Vision 2040 and how does it affect your business strategy?
Oman Vision 2040 is a government program that aims to promote economic diversification and sustainability in our country. Among other things, it envisages reducing dependence on imports and strengthening local production generally.
We are actively contributing to this vision by locating as much of our value chain as possible in Oman. We source packaging materials, boxes and labels from local manufacturers and create jobs for Omani citizens.
Another important point is the reduction of plastic. Our goal is to use up to 45% less plastic per bottle in the next few years, which is in line with the sustainability goals of Vision 2040.
What changes in consumer behaviour are you observing?
The most important trend is the increasing demand for small packaging units. Previously, 500 ml and 1.5 l bottles dominated the market, but today consumers prefer smaller bottles because they are more convenient and hygienic.
There is also a growing interest in mineralised and alkaline water, but these segments are still relatively small in Oman. In the future, I could even see a further downsizing to 200 ml bottles as consumers become more conscious of not wasting water.
How do you navigate competition in the FMCG sector?
In addition to quality and price, reliability as a supplier is a key factor. A competitor may have a lower price, but if they are unable to deliver large quantities on time, they will not be successful in the long term.
We continuously invest in our production capacity to meet the growing demand. At the same time, we work with the best suppliers to ensure the highest quality.
Success in our business is also about taste. Our water comes from an underground source that is virtually sodium-free and has a refreshing, balanced taste. Consumers won’t buy even very cheap water if it doesn’t taste good.
What trends do you expect for the future of the water industry?
The reduction of plastic will play a central role. We are already working on lighter bottles and testing alternative materials. The trend is clearly towards environmentally friendly bottles and smaller formats.
How important is automation in your production processes?
Without automation, we would not be able to produce efficiently. Our goal is to reach a capacity of 250,000 bottles per hour in the next few years, and this will only be possible with state-of-the-art technology.
If you visit our production line, you will see how few employees are needed to produce 118,000 bottles per hour. Only a handful of people are needed to monitor the entire process, while our competitors need significantly more staff.
How do you ensure consistent water quality?
We use real-time monitoring systems and have our own laboratory that regularly analyses samples. We are also ISO- and HACCP-certified. Quality control is absolutely essential in the water business. If the quality isn’t right, you are producing 118,000 bottles per hour that consumers could potentially have problems with. We cannot take that risk, which is why we test every batch twice before it leaves production.
We also have a team that monitors the market and randomly tests products at our customers’ stores. We also train distributors on how to store the water properly – not next to chemicals, for example, and not in the sun, as temperatures here can reach up to 50° C.
What factors influenced your decision to work with Otto Hofstetter AG for your first mould in 2022?
When I did my due diligence on Otto Hofstetter AG, I was most impressed by the precision they could offer. The accurate design, optimal cycle times and smart system integration were key factors in my decision. In the water bottling business, precision is everything. You need the right preform with the right cycle time and the right integrated cooling system. A competent toolmaker can make a good mould, but you need the right cooling system and injection technology to have a complete solution.
Partnering with a Swiss company like Otto Hofstetter AG has been crucial to our success. The reliability and durability of their moulds allows us to operate 24/7 with minimal downtime.
How did the pilot phase go when you started preform production?
The pilot phase was challenging, as it was my introduction to the water-bottling business. I wasn’t familiar with preforms and had to learn how they behave in the blow-moulding process. Starting small was crucial to gain know-how along the entire production chain.
I conducted small-scale tests, collecting preforms and testing them on our filling machines to ensure they functioned properly under real production conditions. It was a cautious approach but necessary to ensure we got everything right from the very beginning.
How did working with Otto Hofstetter AG influence your preform designs?
Thanks to Otto Hofstetter AG, we were able to reduce the weight of our preforms from 7.5 to 6.3 g – a saving of 11%. This was only possible thanks to the precision engineering and expertise they brought to the project. A key factor in our success was Otto Hofstetter AG’s ability to build a 128-cavity mould for our special preform design. This was a significant technical achievement, as previously this type of lightweight preform was only produced on smaller moulds with fewer cavities.
The Otto Hofstetter AG mould runs in our top-entry injection moulding system and achieves excellent efficiency rates – our system runs at 98% efficiency. The material savings quickly compensated for the additional investment in high-quality tooling and in-house preform production. For our 250 ml bottle, we chose a bottle with the 29/25 closure that is common in the region. With the special neck geometry, it was possible to make the bottle 8% lighter, at 6.85 g. The material savings quickly paid for themselves and made the additional costs of producing preforms and closures in-house worthwhile.
What aspects of working with Otto Hofstetter AG do you particularly appreciate?
I especially value the relationship we have built. Working with Otto Hofstetter AG feels like being part of a family. We can openly discuss any issues, and their team is always available. I can call their representative any time, regardless of whether it is a weekend or outside working hours.
Their approach is not just about sales; it’s about providing the right solution. They have been excellent consultants, taking care of our needs and helping us achieve our goals. The other crucial aspect is the precision of their designs. Not everyone can produce high-quality preforms with reliably consistent cycle times.
Their technical support has also been exceptional. If we have a problem, one call is all it takes to get help. Even small spare parts are delivered by air freight, if needed, and they really understand the customer’s pain when a production line is forced to stop.
How do you plan to develop Sarooj Water over the next five years?
Our goal is to become the market leader in all packaging sizes. We aim to expand our range to include 500 ml and 1.5 l bottles and grow our export markets. The next step in our growth strategy is to add another production line with a capacity of 155,000 bottles per hour, which I mentioned earlier. This will enable us to better serve the growing demand in Oman and help us expand our presence in neighbouring countries.
What is your long-term vision for Sarooj Water?
We aspire to establish Sarooj as the leading water brand in Oman and across the GCC. Our focus will continue to be on maximum efficiency, superior quality and sustainable packaging solutions. We plan to grow our business five-fold over the next five years, not only by increasing our production capacity but also by entering different market segments. Sustainability will continue to be a key focus, with ongoing efforts to reduce the amount of plastic in our bottles.
The journey has only just begun, and, with the continued support of partners like Otto Hofstetter AG, we are confident that we can achieve our ambitious goals.
