State Trading Organization PLC (STO), the largest state-owned enterprise in Maldives established its STO Construction Solutions segment back in 1988 to cater to the construction requirements in the country.
Following the implementation of its newest business segment, STO took it upon itself to provide solutions for building needs whether it was delivering construction-related products from cement and coarse sand to plywood, deformed bars, or roofing materials and accessories.
Since its introduction, STO Construction Solutions have expanded its product portfolio and it boasts some of the strongest brand names in the Maldivian construction and infrastructural development industry. Today, STO provides wholesale and retail goods from notable construction-related brands such as Raysut Cement and Renacon. It is also the authorized distributor for Nippon Paint and KONE Elevators and Escalators in Maldives.
STO joined hands with Raysut Maldives Private Limited and Maldives Structural Products Private Limited under joint ventures to sell its cement products and roofing materials and accessories at competitive prices.
As part of its efforts to provide top-notch products to the growing customer base in the Maldives, STO launched STO Powermix in 2016; the very first ready-mix concrete supplier in Maldives. STO Powermix was a game changer and was a welcomed change for the construction industry which drastically reduced the time and cost for the customers.
In addition to this, STO Powermix is ISO 9001:2015 certified for the Design, Production, and Supply of Different Grades of Ready-mix Concrete. Meanwhile, the STO Powermix continues to thrive with 2 batching plants 17 transit mixers, 4 concrete pumps, a boom pump, and a fully equipped in-house laboratory to provide varied concrete solutions and concrete pouring for every need.
Looking into the company’s track record for the past five years, STO was able to ensure price stability in the market with regard to construction materials in the industry. This made a lasting and positive impact on all related stakeholders in the market. STO also continued to progress forward and eventually became the market leader in providing ready-mix concrete in Greater Male’ area. STO Powermix now has the capacity to provide technical assistance for major concrete projects.
Careful investments for the future have allowed STO to remain consistent in its growth. This is evident since STO has invested in a port facility which would eliminate its dependency on private port facilities or outer anchorage options. To strengthen its services, STO has also acquired its own bulk carrier vessel to bring construction materials, enabling STO to stabilize its own freight control. Moreover, STO has maintained a foothold in the elevator market, while the market share continues to grow consistently year by year.
Five years back, STO had an approximate percentage of 15% share in the cement market and currently, it enjoys over 50% of the market’s share. Moreover, STO has also appointed Construction Agents across the country and increased its accessibility to customers; the current number of appointed construction agents is 60 agents and will increase further in the future.
Notable developments include the introduction of STO’s very own formula of concrete, using customized admixture. The company can currently supply concrete up to C70 grade in contrast to the C30 grade used generally in the Maldives.
A major highlight from 2022 is STO winning the contract to supply concrete to the biggest infrastructure project in the Maldives; the Thilamale’ Bridge construction project. STO is currently supplying C70-grade concrete for the project.
Despite continuing to grow past the pandemic’s ill effects on the country’s economy, there was no doubt that STO was hit by the impact of Covid-19. The period of the pandemic was hard for all industries, especially high labor-intensive industries like the construction sector. Completing construction-related tasks whilst socially distancing was challenging and most of the contractors had to keep their work halted for several months incurring huge financial losses.
Moreover, shipping costs were significantly high during the same period. STO had to bear a major portion of the price increment and proportionate cost increment was not passed to its clients to ensure that the price stability was maintained in the market. STO introduced a fine waive-off scheme for credit customers to keep them financially afloat.
Even through dire circumstances, STO managed to add another feather to its cap by being the exclusive supplier to all Covid-related facilities that were constructed in early 2020.
As for the prospective initiatives planned by STO for the coming years, STO will introduce a mobile ready-mix concrete plant that would allow the supply of concrete not only in the Greater Male’ area but also across the country as well.
STO also plans to expand its ready-mix concrete facility. At present, STO can cater to up to four sites per day, while with an expansion the goal is to cater to up to seven sites per day.
While the company has gained a firm hold in the construction sector, especially in becoming the market leader in the ready-mix concrete supply, it does not appear that STO is planning to slow down any time soon. In fact, STO is currently making strong efforts to venture into the international market and expand its business by engaging in international trade.
To see this vision realized, STO recently participated as an exhibitor in the Big 5 Construction Fair held in Dubai in December 2022. The fair is regarded as the largest construction exhibition in the Middle East.
With 35 years of remarkable growth already to its belt, STO Construction Solutions was formed to provide customers with high-quality products while maintaining price stability and service excellence. While STO’s construction-related services have been active for over three decades, what has remained unchanged is the company’s dedication to improving customer satisfaction. The efforts put in by the tireless employees of this segment are truly responsible for the growth and success seen today.
