ONA Group has continued its expansion by investing in businesses with high growth potential and striking dynamic partnerships around the world

he ONA Group is Morocco’s flagship enterprise with about 100 subsidiaries and more than 25,000 employees. In 2006, total turnover rose to 28.8 billion dirhams ($3.56 billion), making it the second-largest company by capitalization to list at Casablanca’s stock exchange. Founded in 1934, the private conglomerate spans sectors as diverse as mining, agribusiness, distribution, telecoms and financial services. Its internal synergies mean that Morocco’s GDP growth is as critical for the state as it is for ONA.

One of the country’s largest conglomerates, ONA Group has a long list of subsidiaries in various sectiors, including distribution, IT, finance, mining, agribusiness, real estate, telecoms and energy

As a corporation, the target is for all subsidiaries to help meet the financial goals and the industrial objectives of its shareholders. ONA has made strides in improving governance, instituting new management techniques and oversight mechanisms. Its modern approach to business has paid off handsomely, facilitating the group’s exports and drawing the interest of foreign corporations. After all, net profits grew 23.3 percent in 2006 to 619 million dirhams ($76.5 million).

Its partial ownership (29.6 percent) of Attijariwafa Bank has launched ONA into global financial services. In 2005, Attijariwafa Bank expanded into Tunisia via a joint partnership with Spain’s Grupo Santander. It took over the Banque du Sud, which at the time held 9 percent of deposits in Tunisia. A year later, Attijariwafa Bank set up shop in Senegal, with initial capital of 38.5 million dirhams ($4.75 million). The ONA Group is also 50 percent owner of Agma Lahlou Tazi, a top player in Morocco’s insurance market, with social capital of 20 million dirhams ($2.46 million). Agma Lahlou Tazi is the only insurance company of its kind listed in Casablanca.

Through its mining company, Managem, the ONA Group’s clout reaches deep into sub-Saharan African countries like Democratic Republic of Congo (DRC). Managem has just signed a partnership with Costamin, a DRC mining company, for the extraction of copper and cobalt. Meanwhile, estimated gold reserves at its Bakoudou Project in Gabon amount to 9 tons.

Ever since ONA went public in 1995, its shareholder base has grown to 10,900,000. The sharp appreciation of the group’s portfolio has gone hand in hand with its consolidation. But it is diversification that has given ONA new impetus. Real estate, telecommunications and supermarkets continue to add value to the group. By 2003, the board decided that further expansion would take the shape of international partnerships. In mining, it has signed a strategic agreement with Canada’s Semafo. In order to acquire domestic food-processing firms, it reinforced its partnership with Danone. For supply chain management, a previous joint venture with France’s Auchan chain helped round up further assets.

100 subsidiaries
With more than 25,000 employees, the ONA Group is the largest private holding in Morocco. There are almost 100 subsidiaries working under its umbrella organization. Diversification first began in the 1980s, when ONA went beyond core activities in mining to expand into financial services, marine transportation, supermarket chains and real estate. For 2008-2010, the group has set a target of 7 percent in consolidated revenue growth.

Financial activities
With economic growth projected to reach 5.8 percent in 2008, Moroccan banks are in expansion mode. Attijariwafabank, which is 30-percent-owned by ONA, boosted its net profits by 24 percent last year. The Casablanca-based bank has also cut back on non-performing loans and improved risk management. After expanding into Tunisia and Senegal, Attijariwafabank intends to spread across North Africa.

Mining
The ONA Group started out in 1934 as a mining outfit. Today, it dominates Morocco’s extractive industry through Managem, its mining arm. As the country’s chief metals producer, it is also a major shareholder in the Sonasid steelworks. In Morocco, it runs the copper and zinc mine at Douar Hajar and the cobalt mine at Bou Azzer, among several others.

Agribusiness
Agribusiness and food processing industries account for almost half of the ONA Group’s revenue. Sales turnover for this sector was 13.5 billion dirhams ($1.5 billion) in 2005. Dairy specialist Centrale Laitière has 60 percent market share in Morocco, while sugar refiner Consumar is one of the largest in North Africa. Bimo, a manufacturer of cookies, has 50 percent of the share in confectionery products. ONA-owned fish canneries, such as La Magegasque, are slowly penetrating international markets.

Distribution
Growth in Morocco’s retail sector has been fueled by increasing consumer confidence in the economy. But according to ONA’s CEO Saad Bendidi, only 8 percent of purchases in Morocco are made at retail outlets. That means there is a huge margin for growth. As of 2005, the ONA-owned Marjane chain was the uncontested leader in Morocco, with 14 hypermarkets, and 22 supermarkets (Acima).

Growth drivers
The ONA Group announced early in 2007 that it was on the lookout for investment opportunities in energy and environmental technology. With a healthy balance sheet in 2006, ONA’s CEO Saad Bendidi says the group now has the flexibility to build up its portfolio in non-core assets. In January, ONA sold its minority stake in insurance company Axa Maroc
to build up future growth drivers such as utilities.