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10-15% growth targets in government sector: Al-Kharafi Group - Daily News Egypt

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10-15% growth targets in government sector: Al-Kharafi Group

Egypt consumes 75% of domestic production of the Arab Company for Computer Manufacturing, the remainder is exported, says Al-Kharafi Group marketing manager


 

The Arab Company for Computer Manufacturing (ACCM), a subsidiary of Al-Kharafi Group, is targeting a governmental sector growth rate of 10% to 15%, according to Al-Kharafi Group’s Marketing Manager Wael Elsahn.

ACCM’s target for 2015, Elsahn said, is to take into account the “very high” competition expected in 2015 due to market and business sector growth.

“The most important factor that we hope for is that the foreign currency exchange rate remains steady,” said Elsahn.

Al-Kharafi Group invests heavily in high-technology industry, and is taking part in building the high-technology know how infrastructure and industry in Egypt. ACCM has its own factory manufacturing products as procurement parts and circuit boards, building parts for major international brands. They previously manufactured parts and supplies for Samsung before it opened its own factory.

Outside Egypt, ACCM exports to countries including Sudan, Tunisia, Kenya and Jordan, and had previously exported to Libya prior to that country’s political problems.

Elsahn said that 75% of ACCM products remain on the domestic Egyptian market, with the remaining 25% exported.

According to Elsahn, government taxes are within the acceptable framework and do not affect the company’s investment offers. In the second half of 2014, the group increased its investments in manufacturing by 35%, and are aiming for an increase in sales with a percentage near the amount they have invested. According to Elsahn the company signed an agreement to become the sole sales and manufacturing agency for JVC in Egypt. They will be releasing a new JVC TV in 2015, combining a personal computer, a TV and a mobile phone. Almost all parts produced in Egypt, with 15,000 units to be produced in first batch. The new product indicates that people want easier access and more interaction with their products than before.

Talking on the other two divisions under Al-Kharafi Group, Elsahn said that EMAK targets major projects including the private sector, telecommunications sector and educational sector. The company also sells IT solutions for the government to support the country’s mega projects.

Nordix targets retailers and their main buyers including Carrefour, CompuMe and Computer Shop.

Since the group owns three subsidiaries with different target segments, Elsahn added that growth opportunities differ from one segment to the other. Nordix, which targets retailers and depends mainly on the end consumers who have been witnessing the lowering of their income values, the chances for growth in this segment are minimal. EMAK’s chances for growth are increasing, due to the government creating opportunities for them to offer their solutions and to help the government develop more in the technological field.

He also said that prior to 2010, they were witnessing steady growth and greater stability in the foreign currency exchange rates. Things are currently less stable, because of the values of incomes, the fluctuations in the foreign currency exchange rate and the problems facing consumers. Pointing out that those fluctuations have a direct effect on their business, Elsahn said they import some components, with the consumer costs rising if exchange rates increase by 10%.

Elsahn added that due to the boost in energy prices, their operating costs have increased by 27%, with an increase in employment wages.

With an initiative to exploit the alternative energy, Elsahn said that they are currently working on a project to offer solutions with the use of solar energy. He added that to make better use of energy, they are using LED lamps which he said use less energy, even outperforming the energy saving lamps.

The company started its operations in Egypt in December 2005. Al-Kharafi Group also owns EMAK High Technology Trading Agency and Nordix. According to Elsahn, Al-Kharafi Group employs 350 locals across their three companies.

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https://dailynewsegypt.com/2014/11/05/10-15-growth-targets-government-sector-al-kharafi-group/
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