L’Oreal Egypt factory exports 85% of its production capacity: managing director

Nehal Samir
5 Min Read

Despite the challenges that faced the Egyptian economy during the last four years and the cosmetics market, especially, L’Oreal Egypt was able to maintain its position in the cosmetics market globally. It is currently considered as one of the world’s largest manufacturers and exporter of cosmetics.

Moreover, it affects Egypt’s economy as Benoit Julia, said L’Oreal Egypt managing director stated earlier in a conference in 2017, that L’Oreal Egypt has 473 employees, 99% of whom are Egyptian, plus 200 factory employees, while the French L’Oreal group aims to attract 1 billion new consumers by 2020.

Daily News Egypt sat down for an interview with Julia to learn more about its strategy in Egypt in order to help attract one billion new consumers by 2020. The transcript for which is below, lightly edited for clarity:

How far L’Oreal Egypt’s investment amount to?

L’Oreal Egypt’s subsidiary began operating in Egypt in 2009. L’Oreal group in 2013 decided to inject initial investments worth 50m in investments to establish its factory in the 10th of Ramadan Industrial City, to become its export hub in the Middle East and North Africa region.

Does L’Oreal have any expansion plans in Egypt?

Currently, L’Oreal Egypt factory’s production capacity reaches 80m units in 2017 and there is an opportunity to increase the productivity to 300m units. However, such an endeavour mainly depends on the level of demand in both local and regional markets.

What main products contribute to firm’s annual sales?

L’Oreal Group is considered the beauty company, number one, worldwide, with total sales amounting to 26.02bn in 2017, with 35 brands distributed across 150 countries. Despite the challenges that have faced the Egyptian cosmetics market during last year, L’Oreal Egypt has managed to defy the market trajectory, and has successfully recorded double-digit growth rates in volume. L’Oreal Egypt proudly offers a wide range of products with each brand category catering for a specific market segment.

Can you mention company’s total export volume?

L’Oreal Egypt’s factory is the regional export hub for Middle East and North Africa with a total export rate of 85% of its production capacity.

Which most important countries receive L’Oreal’s exports?

About, 15% goes to the local market and the main company export markets are to the Gulf Cooperation Council states, Lebanon, and Morocco.

Any plans to introduce new line of L’Oreal products?

L’Oreal Group is proud to have a wide range of international brands reaching 35 brands, 13 have been launched in Egypt and we continue on introducing new brands to the Egyptian market. We have celebrated in May 2018 the launch of Yves Saint Laurent.

Can you share company’s five years strategy in Egypt?

L’Oreal Egypt works according to precise strategic plans which always aim to empower the industry and enhance the company’s operations. In 2015, the company ranked sixth in the Egyptian market, but by 2017 L’Oreal Egypt successfully reached the top three in the market. The Egyptian market includes 100 million inhabitants.

Any latest updates on company’s CSR activities? Any new programmes in upcoming period?

L’Oréal Egypt CSR strategy entails several programmes, substantially focusing on women empowerment and equality, which is implemented through two the following programmes.

L’Oréal- UNESCO for Women in Science Programme- Egypt- in cooperation with the UNESCO office and the Academy of Scientific Research in Egypt. The programme grants scholarships to distinguished Egyptian female researchers totalling €22,000.

The second programme is called “Egyptian Women – Pioneers for the Future” in cooperation with Sawiris Foundation, NGOs, the National Council for Women and the French embassy. It aims to train and provide employment opportunities for women in the less privileged regions. The total number of women who have joined the program at L’Oréal Egypt is 13 promising women.

L’Oréal Egypt also believes in the importance of training and education, which is an integral part of L’Oréal’s international policy. The first specialised institute for training and teaching hairdressing has been established and called “The L’Oreal Hairdressing Institute”, about 100 trainees have graduated during the first year.

Finally, the disabled programme whereby L’Oréal Egypt cooperates with Helm Foundation, since 2014 to train and raise awareness about the necessity of the integration of people with special needs in the field of work and society.

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