LE483 m Investments in Food Projects for FY09/10 

The Food Industries Holding Co. (FIHC) General Assembly convened under Investment Minister, Mahmoud Mohieldin. The meeting also included the presence of company chairman, Ahmed al Rakaybi, members of the General Assembly, and the Central Auditing Organization. This meeting was held to look into the FIHC budget for FY2009/2010.

FIHC targets LE 397 million in exports and LE 14.2 billion in sales by its affiliates.

Rakaybi presented the indicators of affiliate companies of FIHC and the board report on the company's budget for FY2009/2010, which expects LE 188 million in net profits compared to a net profit of LE 133 million in FY2008/2009, an increase of LE 55 million.

The budget reflects positive results of the public business companies' debt settlement program, which was enforced by the Investment Ministry in cooperation with the Central Bank of Egypt (CBE) and Finance Ministry. The balance of loans and overdraft by FIHC affiliates rose to LE 4 million in the FY2009/2010's budget from LE 328 million before the debt settlement program started in June 2004.

Minister Mohieldin said the ministry continues to support the affiliated companies through the debt settlement program. It helps adjust the financial positions of companies, as well as through injecting new investments for purposes of development and modernization.

He stated that public business companies have witnessed the largest reform and development process. LE 14 billion of fresh investments have been injected into pubic business companies since 2004, according to the minister. Investments in companies affiliated to the FIHC in the food industry reached nearly LE 1,800 million since July 2004, he added.

The head of FIHC presented new investments that total LE 483 million, which will be implemented in FY2009/2010. He presented new investments in the sugar industry, which includes Wadi an-Naqra project. Their feasibility study was conducted by the Sugar & Complementary Industries Co., an FIHC offshoot. Its annual production capacity is 125,000 tons of cane sugar. An area consisting of 40,000 feddans were reclaimed to cultivate sugarcane with a total investment cost of LE 1100 million.

A feasibility study is also underway to launch the project for reclaiming and cultivating more land for sugarcane in an area of 40,000-50,000 feddans in Comombo. A cane sugar plant would also be built, costing LE 1,200 million, in correlation with the Ministries of Agriculture and Irrigation.

New investments would also include expansions in sugar companies similar to those regulated by Law No. 8. In addition, a new plant would be launched for Delta Sugar Co., Sharqiya, with a production capacity of 125,000 tons of sugar from the sugar beet. There would also be a second production line for Sharqiya Sugar Co. to produce 125,000 tons of sugar and a second production line for An-Nubariya Co. to produce 125,000 tons.

Future investments in FY 2009/2010 also include completing the rehabilitation and development of the Egyptian Sugar and Integrated Industries Company (ESIIC). This will include LE78-million in investments to complete the rehabilitation of Comombo and Edfu plants.

Moreover, LE52 million will be pumped into the Middle Egypt Flour Mills Company in order to develop Tabarak mills in Beni Suef and Bani Mazar mills in Menia. An additional LE24 million will be injected into North Cairo Flour Mills Company in order to develop Al-Huda and Al-Safa and Marwah mills.

Future investments also include investing LE6 million into Al-Ahram Markets Company, LE40 million into the General Company for Silos and Storage, LE34 million into Kaha Company for Preserved Foods (KAHA), and LE2 million into the Egyptian Company for Wholesale.

Rakaybi has presented a plan to complete the development of 1,080 consumer cooperatives, of which, 332 will be developed in the first phase at a cost of LE113 million. An additional 300 cooperatives will be developed in the FY 2009/2010. Integrated mills will be established and Kaha Company for Preserved Foods will establish a new hypermarket along Kaha agricultural road at a cost of LE47 million. In addition, a hypermarket as well as a commercial and administrative compound will be established in Benha City. It will be constructed on a plot of land owned by the General Wholesale Company, and is estimated to cost LE60 million.

Minister Mohieldin has stressed the importance of developing consumer cooperatives and the ministry's Restructure Fund support for a plan to modernize cooperatives. Mohieldin has called on the FIHC to complete the plan of establishing new cooperatives in governorates. Governors should cooperate and provide the land which is needed. Rakaybi added that 112 cooperatives would be established nationwide at a cost of LE50 million. These cooperatives would include 59 cooperatives affiliated to the General Wholesale Company and 53 cooperatives affiliated to the Egyptian Company for Wholesale.

He has also reviewed the FIHC efforts in corporate governance and giving the young leadership the chance to manage companies or helping them is deputy board chairmen. The percentage of companies whose board of directors was reshaped reached some 40%. Rakaybi has also referred to the FIHC efforts in the area of social responsibility and community service.

Minister Mohieldin has called on the FIHC general assembly to give their comments and views on topics on the agenda. In addition, the Central Auditing Organization (CAO) representatives provided a report on the FIHC estimated statements for the FY 2009/2010. They also provided the CAO Performance Assessment Division's report and the FIHC reply to it.

The FIHC general assembly has approved the appointment of a specialist assistant to the FIHC chairman. The assistant will follow the implementation of the new investment program and modernization processes in the FIHC subsidiaries. Such a step comes within the framework of the Ministry of Investment's plan to encourage its companies to carry out new projects nationwide.