“Upper Egypt“ invests EGP 10 mn to increase its production capacities this year

Arif: Exports account for 30% of the company's total sales, 20% increase in production capacity during 2022

Upper Egypt for the manufacture of concentrates and juices intends to invest EGP 10 mn during the current year to add a new production line that will contribute to increasing the company's production capacity by 20%.

Gamal Arif, Chairman and Managing Director of Upper Egypt for the manufacture of concentrates and juices, said that the company produces tomato paste, tomato ketchup, mayonnaise, vinegar, and various sauces.

The company's net profit was estimated at EGP 6 mn during the past year, and it aims to achieve growth in profits by the end of 2022.

He said that the company will add a new production line for the production of sauce in July, with investments amounting to EGP 10 mn, which will contribute to raising the production capacity of the company by about 20%, which contributes to achieving growth rates and the company's expansion plans at the level of the local and export markets.

He added that the company had launched, at the beginning of this year, a variety of sauce products in different forms that suit the requirements of the local market and export, whether consumers or restaurants.

He said that the total items produced by Upper Egypt  amount to 30 items in various shapes and sizes, and exports account for 30% of the company's total production. Romania, Poland, the Gulf states, Rwanda, Ghana, Zambia, and Sudan are the most prominent export markets.

The growth rates at the level of exports during the past year were estimated at 50% compared to 2020, while the growth rate in the local market was about 15%. The company aims to achieve a growth in sales during the current year by 10%.

He revealed that his company aims to export to North African countries, especially Libya and Morocco, as well as Madagascar and Senegal, pointing out that participation in foreign exhibitions contributes to enabling companies to meet customers and thus open new markets for export.

He pointed out that the food industry market has been suffering for nearly 6 months from inflation, and the prices of packaging materials have increased by up to 30% globally, in addition to the high cost of shipping.

He said that all these reasons led to a decline in purchasing power because the citizen is no longer able to buy the quantities that he used to buy before.

He stressed that these challenges cannot be solved by companies, and it is expected that all small, medium and large companies will suffer if the crisis continues.