Al-Shams Agro Group expects to double its sales by the end of this year to reach EGP 100m compared to EGP 52m sales of 2016.
According to the managing director of the group, Zakaria Shams, the group achieved a 10.6% growth in sales over the past year, rising to EGP 52m against EGP 47m in 2015.
Shams attributed the expected increase in revenues this year to two factors: the first is the doubling of the prices of products in the local market despite the decline in quantities, and the second is the exchange rate differences that followed the floating decision of the pound, which resulted in the increasing of exports.
He added that the group has established a juice factory only four years ago but has not yet reached the maximum production capacity. The group seeks to achieve so in the next few years, he said.
The factory has a maximum production capacity of 8,000 tonnes of sauce paste, 10,000 tonnes of guava concentrates, 3,000 tonnes of mangoes and 4,000 tonnes of oranges.
Shams said the group will inject new investments during the coming period and will take advantage of the production capacity of the current plant in full. The company is opening new export markets to absorb the entire production of the company, he added.
Shams pointed out that the company raised the share of the exports to 55% of the total production of the company compared to only 40% last year.
The company plans to reach 80% of its production capacity in the coming years.
He added that the company is currently studying a number of African markets for its invasion during the coming period and is also seeking expansion in Gulf countries.
He added that the company focuses on the African market during the coming period because it is a large consumer market, and the opportunities for expansion are strong if overcome the constraints and identify the needs of consumers and their purchasing power.
He pointed out that the main obstacles to expand in Africa are the length of shipment of up to 30 days and the fierce competition with countries like Turkey.
As to the extent of the guarantee of obtaining the value of the exported shipments, he said the group receives the bills of lading after guaranteeing the payment of the full amount or the largest percentage, and if the long-term payment enters into an agreement with a risk insurance company to cover 80% of the cost of the shipment.
Shams said that, despite the increase in the cost of production, the flotation revived exports of the agricultural and manufacturing sectors, where 50-60% of finished products depend on local components.
He pointed out that exports have become an inevitable necessity after the decline in sales in the domestic market during the past period, which created a surplus of companies.
Established in 1993 as an agricultural crop company, Al Shams is cultivates crops before establishing the juice concentrate and sauce paste factory in 2014.