EGYPT – Raya Foods, frozen vegetables and fruits processor is considering several investors’ offers to increase the company’s capital by EGP 350m to finance its expansion during the year 2023-2024, as a step towards recording steady growth in sales to exceed US$120m (EGP 3.5bn) by the end of 2026.
Omar Abdel Aziz, CEO of Raya Foods, pointed out that the company targets sales of EGP 1.5bn in 2023, adding that the company is implementing expansions according to established strategic plans.
He stated that exports have increased to 98% of the total production of Raya Foods in 2023 compared to 93% in 2022.
Raya Foods has also announced remarkable growth during the first quarter of this year compared to the same period in 2022. It recorded a total growth rate of 65%, achieving sales of EGP 300m since the beginning of this year, compared to EGP 165m in the same period last year.
Aziz attributed the growth rates achieved by the company to the continuous expansions at the level of operations and geographical presence in more than 50 countries around the world on six continents.
The CEO said that the company has achieved massive agricultural expansions through its subsidiary, Raya Agricultural Crops, from 300 feddans during the 2022-2023 season to 450 feddan during 2023-2024.
Raya agricultural products have become approved by the largest supermarket chains in England, Germany, Ireland, Saudi Arabia, and the United Arab Emirates.
Al-Bahi family exits Fancy Foods, studies new investment opportunities
Concurrently, Al-Bahi family, which owns the majority stake in Fancy Foods Company, a supplier of food products and services, has sold all its shares in the company to Edita Company for EGP 380m, confirmed by sources to Daily News Egypt.
The family is considering investing the proceeds of the sale in establishing a new company for snacks, and several other investment alternatives, but it is waiting for the economic situation to stabilize in order to make the investment decision.
Fancy Foods was established by Alaa Al-Bahi, former head of the Export Council for Food Industries, with the participation of other investors, after their exit from Mass Food Group, which was acquired by the American Kellogg’s company in a deal worth EGP 400m.
Egypt launches national project for food warehousing
In Egypt, the government is tossing itself at the forefront of fostering investment in the food industry sector by making infrastructure available.
The government is undertaking a national project to establish strategic food warehouses. The project’s first phase will be launched in Suez and will be built on an area of 10 feddan, with investments worth approximately EGP 1.5bn, and will serve the governorates of the Suez Canal region.
Egyptian Minister of Internal Trade and Supply Ali El Moselhy pointed out that strategic warehouses are one pillar of the internal trade and food security system and secure citizens’ needs for ready-to-use goods for long periods.
The minister added that the aim of those strategic warehouses is to double the reserves of final goods at the governorate level, as well as reduce the loss and waste of final goods.
Furthermore, reduce trading circles, as well as to take into account the geographical distribution and diversity of those warehouses and raise the efficiency of commodity stock and ensure the preservation of its quality and safety, as well as following up the commodity inventory through online linking of all strategic warehouses, which keep the commodities securely.