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Elsaad injects EGP 50m to develop production lines over 3 years - Daily News Egypt

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Elsaad injects EGP 50m to develop production lines over 3 years

The company allocated EGP 25m to establish a packaging line in 2017

Elsaad for crops targets to increase its exports by 30% in 2017 to reach EGP 130m, compared to EGP 100m in 2016.

Mohamed El-Saad, chairperson of the company, said that his company’s total exports amounted to 15,000 tonnes worth EGP 100m, compared to 10,000 tonnes worth EGP 70m in 2015.

He predicted that the export of agricultural products will witness an increase this year, due to the devaluation of the Egyptian pound against the US dollar and the increased demand for Egyptian products, which will help the company to achieve a growth of about 30% by the end of 2017.

El-Saad pointed out that the company was established on an area of ​​6,000 sqm, which includes a rice mill and three factories for packaging crops, in addition to a refrigerator. The rice production unit capacity reaches 200 tonnes daily.

The broad bean factory capacity records 150 tonnes daily, while the white kidney bean factory produces 100 tonnes daily. The company also includes a sieving sector, which produces 10 tonnes per hour, such as sesame and chickpeas.

El-Saad added that the company’s exports include rice, beans, sesame, cumin, and broken rice. The company sells its products to 40 countries, including France, Germany, Spain, Turkey, Morocco, Algeria, Tunisia, Lebanon, Jordan, and Saudi Arabia.

The company imports some crops and releases some of them in the domestic market and re-exports the rest, such as beans, lentils, chickpeas, peas, and popcorn, which are imported from eight countries, including England, Australia, Lithuania, India, and Argentina.

El-Saad explained that the company’s imports reached 20,000 tonnes worth EGP 80m in 2016 compared to about 15,000 tonnes worth EGP 40m in 2015.

He expected that this year would witness a decline of 30-40% in imports to record EGP 60m due to the high cost of importing, adding that his company will rely on local products.

He pointed out that his company aims to open new export markets in Europe, Africa, and the gulf countries during the coming period, to take advantage of the flotation and increase the competitiveness of Egyptian products after the devaluation of the pound.

He noted that the company seeks to develop its production units and increase their capacity by almost 30% over the coming three years, with investments estimated at EGP 50m, in addition to opening a new packaging line at a cost of EGP 25m.

He added that the instability of the dollar over the past year has led to fluctuations in exports and imports. He continued that the local currency exchange rate stabilised at the beginning of the year, which increased exports, especially after lifting restrictions on withdrawals and deposits imposed by the state during the past period.

El-Saad revealed that 60% of the company’s production went to the domestic market, equivalent to EGP 25,000 tonnes in different areas in Egypt.

He said that the freight price increased by 25-30%, while the shipping costs increased by 50% over the past year.

He asserted that the Egyptian bean has no competitor in foreign markets, except Argentina, and there is a high demand rate, which also goes for sesame, caraway, and rice.

El-Saad stated that his company started to participate in international exhibitions in 2012, especially in the UAE, France, and Germany, most notably Anuga, Gulfood, and Sial.

El-Saad said that international exhibitions enhance communication between international companies operating in the same field.

El-Saad Company was founded in 1985, and it produces all types of agricultural crops.

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