By: Mahmoud Salah AlDin
Cairo – Mubasher: Nestlé Egypt had completed the acquisition of Caravan Marketing Company, and intends to expand its business plan through increasing exports to North Africa and Turkey, CEO of Nestlé Egypt Yasser Abdul Malak told Mubasher on Sunday.
Nestlé aims to pump EGP 1 billion worth of investments into Egypt during the coming five years, the CEO noted.
The takeover of Caravan Marketing reflects Nestlé Egypt’s ambition to invest in the Egyptian market, as well as its confidence in the local economy, Abdul Malak said.
He refused to disclose the value of the acquisition deal.
Focusing on production will be through exporting Caravan’s products to neighbouring countries, especially since Caravan has a history of 16 years of success with two trademarks: Nescafé and Bonjorno, the CEO said.
He noted that Nestlé Egypt invests about EGP 1 billion into the country every five years, with a self-finance plan.
Abdul Malak denied that the company is considering new investment opportunities in the current period.
As for the challenges facing the company due to the US dollar exchange rate, the CEO said that there were challenges in the past period, but that they have been becoming less following the decision to float the local currency on 3 November 2016.
Nestlé Egypt imports the majority of raw materials for productions; thus, the company needs foreign currency, he said.
Regarding the money transfer crisis, the CEO told Mubasher that Nestlé Egypt has not transferred money for more than three years, as the company focused on factories and production.
The CEO highlighted that Nestlé Egypt targets a growth rate of 10% in 2017.
He added that following the latest acquisition deal, Nestlé Egypt now owns three factories.
