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Al Nada targets sales of EGP 25m in 2018 - Daily News Egypt

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Al Nada targets sales of EGP 25m in 2018

Production line established for packaging to reduce production costs


Al Nada for Food Industries aims to achieve sales of EGP 25m this year.

Ahmed Orabi,  Al Nada export manager, said the company’s exports represent 30% of its total sales and that the company aims to increase the percentage to 40% by the end of this year.

Al Nada achieved sales of EGP 7m in 2017 and aims to increase the number by expanding into new markets in the coming period.

He pointed out that Al Nada has imported a line for the production of packaging materials at a cost of EGP 22.5m, with a production capacity of 14 tonnes per day, and the new machines began full operation earlier this month.

He pointed out that the packaging line will contribute to reducing production costs for the company, allowing it to compete locally and internationally by offering more competitive prices and offers.

Established in 2010, Al Nada has a factory with five production lines, with a total capacity of 20 tonnes of juice per day and one tonne of sauce. The company produces three brands: Nadoo, Yooka, and Al Nada.

The company is seeking to install glass and tin lines for the products of sauce, ketchup, and jam with a capacity of one tonne per day.

In terms of the food industry, Orabi said that the corrective measures taken by the Egyptian government during the past two years have negatively impacted the sector, raising production costs significantly.

“Despite the liberalisation of the exchange rate and the local currency losing nearly half its value against foreign currency, most of the raw materials for production in food industries are imported, and this doubles operations costs,” he said.

He added that the value of the company’s exports last year declined to EGP 7m, compared to EGP 11m in 2016, due to the economic measures that affected the company’s marketing internationally.

He pointed out that the new export support system, in light of the current economic conditions, may be useful, especially since the government has revealed its intention to help companies enter new markets, which can provide stronger opportunities.

Al Nada exports 40% of its products to African markets, mainly to Mauritania, Kenya, South Africa, and Uganda. The products were well-received by customers there.

The company is seeking to enter Gulf markets starting this year. It has reserved a pavilion at the Gulfood 2018 exhibition.

The company is also targeting East African countries and has reserved a pavilion at the Kenya FOODAGRO 2018 exhibition. Markets there are seen as promising, and the company is considering adding its presence in those markets by creating a branch of the company or having agents there on its behalf, according to Orabi.

Al Nada produces three different products: ketchup, sauce, and several kinds of juices, all in different sizes in order to meet the needs of consumers locally and internationally.

Orabi pointed out that participating in international exhibitions aims to strengthen the relationship of the company with its customers, as well as help the company know the prices and specifications required globally.

He added that the security tensions experienced by neighboring countries have affected the company’s exports significantly because 40% of them were directed to the Libyan market.

He added that the establishment of the Egyptian Food Safety Authority aims to unify food products supervisory bodies, which can save time and effort wasted on obtainin approval from various bodies. Additionally, this decision is a testimony to the quality of Egyptian products, which will eventually lead to improving their reputation globally, he said.

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https://dailynewsegypt.com/2018/02/13/al-nada-targets-sales-egp-25m-2018/
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