Alnada to invest $2m to purchase new production lines

Amany Radwan
3 Min Read

Alnada Company for Food Industries plans to inject investments of $2m to import two packaging lines from Tetra Pak, with the aim of increasing the company’s daily production capacity to 18 tonnes of juice.

The company also seeks to install two glass and metal packaging lines of sauce, ketchup, and jam, with a daily production capacity of one tonne.

Ahmed Orabi, head of export sector, said that Alnada aims to increase its production capacity to seize a larger local market share and expand its exports to European, Arab, and African markets.

Alnada, founded in 2010, owns five production lines. The company produces three brands, including Nadu, Yucca, and Alnada.

Orabi said that the company’s exports in the last year amounted to about EGP 9m, with the aim to export 40% of the planned production this year.

He pointed out that the company participates in international exhibitions to boost its relation with customers, and learn about latest prices and global required specifications.

Orabi added that the company will participate in the Gulfood and the SIAL Paris exhibitions this year to establish a customer base in the target markets.

He revealed that Kenya and Palestine acquire 50% of the company’s exports, while the rest go to Dubai, Oman, Mali, and Uganda.

He noted that the security tensions experienced by Egypt’s neighbours have affected the company, because 40% of the company’s exports used to be directed to the Libyan market.

Orabi explained that the currency difference caused after the pound flotation has not supported the expansion in exports, as the production costs have also increased, including fruit prices and packaging materials, which represent about 40% of the product value.

He continued that Egypt has a promising market for foreign investors for its low labour cost and low energy prices.

Orabi pointed out that the flotation of the pound has reduced the purchasing power of Egyptian citizens, creating a surplus in the food industry market, which companies will seek to direct to overseas markets.

Orabi said that the company always follows local and global standard specifications to preserve its sales rate.

He added that the establishment of the Egyptian Food Safety Authority would unify the observation entities in one place, which will save time and effort and provide quality assurance for Egyptian products.

Orabi called for the increase of financial and technical support of exports, through providing marketing courses for exporters.

He also called for banks to continue providing credit facilities and letters of credit as these aspects have great impact on the stability of products, which comes in line with the state’s plan to reduce the exchange rate in the long run. If companies have enough proceeds in dollars, the demand on foreign exchange in banks will decline.

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