Egypt’s rug manufacturer Oriental Weavers (OW) is planning to bolster its production capacity by nearly 40% over the coming five years, after completing the new complex and finalizing the replacement and renovation of machinery, said Chairman Salah Abdel Aziz in an exclusive interview with Mubasher.
The top official added that his company is targeting EGP 100 million in fresh investments during 2015, stressing that the value of these investments may change depending on demand volume and market developments.
OW is planning to raises sales by 8% to 10% during 2014 and by 12% to 15% in 2015, Abdel Aziz said, adding that the group is adopting a strategy of vertical and horizontal expansions.
The company had posted 10.6% growth in consolidated net profit for the first nine months of FY14 to EGP 322 million, compared with EGP 291 million reported in the same period a year earlier.
Meanwhile, standalone financial statements for the same period showed EGP 148.1 million net profit, representing a rise by 12.3% year-over-year from EGP 131.9 million.
OW had posted EGP251 million net profit for H1-14, with 14.5% growth year-over-year from EGP 219.2 million.
H1 standalone financial results showed EGP 110.2 million net profit, compared with EGP 104 million.
OW said earlier it intends to foray into new countries and bolster its sales in current markets including those in Africa. It added that its official responsible for exports to the African markets is working on increasing the value of exports to $14 million in the few coming years.
The company had announced in September agreeing to buy 11 looms, at investments worth EGP 86.8 million, which will be supplied during the fourth quarter of 2014, which comes in a bid to meet the growing demand.
(written by Ahmed Allam; translated by Sayed Abdel Rahman)