Al-Shams Agro Group ex­pects EGP 100m in sales by 2017 end

EX­PORTS AC­COUNT FOR 60% OF THE GROUP’S AN­NUAL PRO­DUC­TION, SAYS SHAMS

The Daily News Egypt - - Business - By Se­lim Has­san

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 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 ex­pan­sion in Gulf 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.

Zakaria Shams

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