Sima Foods Industries aims to increase exports by 35%, up from a growth rate of 25% in 2016, in a bid to offset the rise in production costs.
Chairman of the company Ahmed Fendi said that the company aims to boost its production capacity through developing some production lines and acquiring new ones to come online by the end of 2017 or early 2018.
He added that the company has yet to decide whether to install the new lines in existing factories or build a new one on the land that the company owns in the 10th of Ramadan City.
He noted that Sima aims to expand into new markets, including India, Pakistan, Russia, and some eastern European countries, saying that the high population of these countries makes their markets attractive. He added that the company will also boost its exports to current markets, including Nigeria, Senegal, Saudi Arabia, Kuwait, Jordan, and Bulgaria.
India is the second largest country in the world in terms of population, coming in second after China. Its current population is 1.252bn, according to statistics from 2013. Pakistan has a population of 182m, and Russia of 143.5m people.
Fendi said that production costs increased by 50-100% following flotation in November 2016, where sugar—which accounts of 70% of inputs—rose significantly, along with the prices of packaging materials, cocoa and butter, next to electricity and fuel.
The Food Industries Holding Company hiked the price of sugar to the industrial and commercial sectors in mid-December last year to EGP 11,000 per tonne. The company also had raised the price several times right after flotation in November.
Fendi said that the company had to raise the prices of its products but only by 10-15% even though the production costs increased by more because of the fierce competition with other manufacturers.
The company also called on the government to quickly provide export subsidies, noting that the company is due for receiving money since 2014.
Moreover, he said that the government has to offer more support, suggesting lower customs on imported production inputs.
Sima Foods Industries was founded in 1961. The company has three factories in Cairo and the 10th of Ramadan City. Its main products include dry candy, chocolates, and chewing gum.