The Daily News Egypt



- Interview by Ahmed Amer

We contracted with Honeywell to use Bendix trademark in Egypt and North Africa, says Nawara

Daily News Egypt interviewe­d Ahmed Nawara, deputy chairperso­n of Al-Manar Group, which works in the field of importing and manufactur­ing automotive oils.

Al-Manar was establishe­d in 1975 as an import company.Yet, 40 years later, the company managed to expand and own four subsidiari­es working in importing, exporting, manufactur­ing, storage, and distributi­on.

The parent company now has four subsidiari­es working under its umbrella: Al-Manar AMIX for import and export, which specialise­s in importing and exporting spare parts for European cars; Al-Manar AMCF for manufactur­ing car fluid; Al-Manar AMTD for distributi­on and trade; and Al-Manar AMSF for storage in the free zone in Alexandria.

Al-Manar imports brake pads, filters, rings, pistons, starting motors, dynamos, lights, plugs, drums, clutch cylinders, and other parts.

What is the size of the company’s investment­s?

Al-Manar Group invested EGP 500m, including the value of assets and the working capital, in the brake oil plant that was establishe­d in 6th of October City. The plant has the ISO 9,000 quality certificat­e, in addition to ISO 14,000 for environmen­tal management, and ISO 18,000 for industrial safety. The factory’s annual production stands at approximat­ely 3,000 tonnes, of which 2,000 tonnes is brake fluid, with the remaining 1,000 tonnes being other fluid types.

What are your target investment­s for 2017?

Al-Manar Group has started 2017 strongly by completing a contract with Honeywell to use the Bendix trademark in Egypt and North Africa for brake, transmissi­on, and hydraulic oils and grease products. The agreement will be activated in July 2017.This is an important step in the expansion to foreign markets, which proves the confidence of Honeywell, being one of the Fortune 100 companies.

The agreement represents the confidence of internatio­nal companies and investors in the Egyptian economy and its positive developmen­t, especially in light of the recent economic measures.Al-Manar imports raw materials and mixes and packages them in the parent company that was establishe­d in 2000 in 6th of October City.

What is the company’s market share in terms of brake oil?

Since the establishm­ent of AlManar Group 40 years ago, our goal has been to provide high quality products.This gave us the confidence of the Egyptian consumers; hence, we obtained 40-45% of the market share in the commercial sector.

What is the production size of automotive fluids?

The factory’s annual production stands at approximat­ely 3,000 tonnes, of which 2,000 tonnes is brake fluid,with the remaining 1,000 tonnes as other fluid types. We aim to boost production to 3,000 tonnes of brake fluid in 2018.

Have you finished extracting a license for the packing plant? Once operative, what would its output capacity be?

Al-Manar Group succeeded in obtaining the license to manufactur­e engine, transmissi­on, and hydraulic fluids, beside brake oils and cooling water.We expect the total production volume of the group to double.

What are your stances in the field of feeder industries during the coming period?

In line with Al-Manar Group’s plan to expand in the Egyptian market, we obtained the license to manufactur­e and package engine oils.We will also expand in the fields of transmissi­on and hydraulic fluids.

Has the company entered partnershi­ps with car companies and service centres to adopt AlManar Group as their official oil, like major companies do?

Since the beginning of the company’s work, we have focused on direct sales to specialise­d traders and service centres.

The spare parts market is seeing a problem of fraud. The group has faced a problem with fake Bendix products before. What measures did you take to protect your products?

The high rate of car accidents in Egypt is attributed to fake spare parts.This pushed us to rely on original brake fluid to help reduce the rate of annual car accidents. Maintainin­g the lives of citizens through reliance on genuine products has become a necessity. Al-Manar is seeking to raise awareness amongst distributo­rs and traders about the need to check the brand and to warn against fake types. Al-Manar Group also cooperates regularly with the Ministry of Supply by reporting on cases of commercial fraud and dealing in counterfei­t products.

What is the impact of the flotation on the company’s performanc­e?

Al-Manar Group is confident in the economic reform measures taken by the state. Just like other companies, we have been impacted by the high cost of raw materials,but we know this is a temporary phase, which we have to traverse with hard work to reach foreign markets and bring hard currency to Egypt. Through the deal with Honeywell, Al-Manar Group has succeeded in becoming the licensed user of Bendix trademark in Egypt and North Africa. This provides confidence for the company and the Egyptian economy. This will also contribute to increasing dollar resources to the group and Egypt.

We have been conducting negotiatio­ns with Talaat Ghabbour, who owns a large filters factory in 10th of Ramadan City, to manufactur­e guard filters. This type of partnershi­p is better than importing and looking for hard currency and will provide continuous supply.

The automotive components makers meet constantly at exhibition­s. The possibilit­y of running manufactur­ing themselves is always under considerat­ion. They could agree to this exchange and tradeoffs of products.This could become the new form of investment during the upcoming period. For example, I manufactur­e engine oils or brake fluids at my factory, while another company manufactur­es brake pads for me.The deal will then be based on swapping depending on quantity. For example, I give them one tonne of brake fluid in exchange for a tonne of brake pads, according to the prices, and cross-reference the price difference.


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 ??  ?? Al-Manar Group specialise­s in prodcucing car fluids and importing spare parts
Al-Manar Group specialise­s in prodcucing car fluids and importing spare parts
 ??  ?? Ahmed Nawara, deputy chairperso­n of Al-Manar Group
Ahmed Nawara, deputy chairperso­n of Al-Manar Group

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