Egypt’s food producer Obour Land to invest 200 mln pounds in 3yrs
Obour land targets new investments in the local market
Egypt-based Obour Land for Food Industries Company plans to pump investments worth 200 million Egyptian pounds ($11.3 million) within a three-year timeframe
The Egyptian dairy maker aims to raise its market share in the domestic market, Obour Land said in a filing to the Egyptian Exchange (EGX) on Sunday.
The Egyptian-based firm is projected to implement this plan starting this year with 90 million pounds in investments during 2018, according to the filing.
Upon this plan, the company plans to establish a subsidiary under the name of Obour Farm for livestock farming and cattle fattening, the company highlighted.
The company may enter the field of processed meat in the future, the company added.
Additionally, Obour Land seeks to reinforce its position in the Egyptian market by releasing new products, the EGX-listed firm indicated.
The first phase of the plan includes the establishment of Obour Farm with a capital of 5 million pounds this year, said Obour Land’s deputy chairman Ashraf Hamed said.
Obour Land plans to boost its capital to around 50 million pounds through cash increase from shareholders, Hamed added.
The company will hold 98 percent stake in its anticipated unit and the remaining 2 percent will be owned by members of the family, he noted, pointing out that entering the livestock farming business, as well as the processed meat business, is a step towards activating the company’s operations.
The company has established a 45-acre farm for cattle breeding, he said.
He revealed that farm will be auto-financed with up to 90 million pounds within 2018 as investments will be doubled over the next three years to reach 200 million pounds.
It is worth noting that Obour Land had posted a net profit of 243.19 million pounds for the full-year ended December 2017, versus 161.9 million pounds in profits in the year before.
Obour Land’s capital amounted to 200 million pounds distributed over 200 million shares at a par value of 1 pounds per share.