State Trading Organization

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State Trading Organisation Plc.
Type Public
Founded Malé, Maldives (1964)
Headquarters Boduthakurufaanu Magu Malé, Maldives
Key people Mohamed Manik, Managing Director, Ms. Fathimath Ashan, Company Secretary
Industry Gasoline, Structural Products, Retail and Wholesale, Tea, Insurance
Products ""N/A""
Revenue ▲ MRF 5.5 Billion[1] (2006)
Employees 1,403
Website www.stomaldives.com
A close-up view of the STO building
A close-up view of the STO building

The State Trading Organization or STO is a public company with 92.29% of the shares owned by the Maldivian Government with the rest 7.71% being held by the public after the IPO a couple of years ago. It is operated directly under the Ministry of Trade and Industries, and is controlled by a board of directors headed by a Chairman.

Contents

[edit] History

Due to the recessive economic status of the country during the 1960s, the government realized the requirement of a central purchasing organization to boost development and raised standards which resulted in the establishment of Athireegemaafannu Trading Agency (ATA) - or what is known today as STO.

In its early years ATA functioned as the primary importer of essential items such as staple foods in bulk and traded with the public at a lower mark-up price. They also played the key role of supplier to the Government.

The provision of basic goods to the public meant growth of economy, and no longer was the nation demanding just staple foods, but also various types of merchandise, construction materials and consumer goods which forced the company to both expand and diversify into several branches located throughout the country.

[edit] Outlets

STO People's Choice Electronics - Established in 1993, STO Electronics deals with branded consumer electronics including home theater systems, digital photography and video equipments, stereo and hi-fi systems and microsystems.

STO People's Choice Home Improvement - Established in May 1995, deals with home appliances, paints, power tools, furniture and cooling systems.

People's Choice Supermart - Established in 1991, Supermart is reputed to be the largest supermarket in the country. It also introduced supermarkets to the nation which provided an inexpensive mode of shopping to the public. Deals with merchandise ranging from toiletries, stationeries, canned and frozen foods, household items and consumer goods.

Staple Foods - Since the establishment of STO in the mid 60s, it has been endowed with the responsibility of ensuring availability of staple foods at reasonably affordable prices while maintaining high qualities.

People's Choice Construction - Established in 1988, deals with construction materials such as cement, river sand, deformed bars, plywood, timber, and roofing materials. It also functions as the main distributor of locally packed international standard cement and roofing sheets with the aide of its subsidiaries Maldives Marine Cement and Maldives Structural Products.

People's Choce Pharmacy - Provides pharmaceutical drugs and other medical items to public consumers and corporate clients such as Indira Ghandhi Memorial Hospital, local pharmaceutical companies and the regional hospitals.

STO Peoples Choice Fuel and Lubricants - Operated from Funadhoo island and Dhoonidhoo island (Malé Atoll) deals with the supply and sale of a wide variety of petroleum products. In January 2001, Fuel and Lubricants diversified as a joint venture between Fuel Supplies Maldives Pvt. Ltd. (FSM) Plc. and Vara Maldives. Pvt. Ltd. to further extend their distribution network to the entire Maldives.

[edit] Services

STO specializes in both retail and wholesale businesses involving selling goods directly to end customers for personal use and providing quality products to wholesale customers at competitive prices.

The company has its branches in the following islands (locations) nationwide:

STO established its credit scheme service in 1995 with the purpose of enabling all government employees to purchase goods from STO on installment basis. This service is very popular and since its inception, STO has earned a reported MRf 124 million from it.

[edit] References

  1. ^ STO Annual Report 2005.

[edit] External links