The Daily News Egypt - - Front Page - 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.


Al-Ma­nar Group spe­cialises in prod­cuc­ing car flu­ids and im­port­ing spare parts

Ahmed Nawara, deputy chair­per­son of Al-Ma­nar Group

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