Business Today Egypt - February 2009 - Indian Summer

The Cover Story of this months Business Today Egypt
was Indian Summer.

Brajesh was interviewed for this feature and quoted as follows:

Looking Beyond IT

Egypt seemed the most ideal location when India was looking for a manufacturing base in Africa for its hair care products in 2006.

“I call it the center of the world,” says Brajesh Bajpai, Marico’s Middle East and North Africa head. “In Africa [and the Middle East] and [with] easy access to southern Europe; which country has such great advantage?” he asks.

In addition to the excellent location, the low cost of manpower, the lower cost of operating a factory including power and fuel and the size of the domestic market, the Egyptian government’s support toward foreign investment was very encouraging.

“GAFI [the General Authority for Free Zones and Investments] was extremely helpful right from acquiring the land to getting all the required permissions and facilities at the factory place. In fact, I would define the response of government as best in world category, with a great customer oriented approach on all issues,” reveals Bajpai.

Soon after Marico acquired two of Egypt’s leading hair care brands, Haircode and Fiancée, its market share rose to 60%. Marico continued to invest not only in the acquisitions, but also in manufacturing facilities, advertising brands, training people and setting up processes along with vendors.

Before the end of 2008, Marico had announced the opening of its third manufacturing plant in Sadat City. At full capacity, it is expected to churn out 10 million liters of cream and oil every year, enough to grease more than just the domestic market.

Marico is now looking at North Africa, southern Europe and Gulf markets hoping to exploit Egypt’s preferential trade agreements, namely with COMESA, EU and Greater Arab Free Trade Area (GAFTA) countries, respectively. The continued lowering of import duties from Europe will help Marico source raw materials at more competitive prices. In addition, all members of GAFTA will be able to take advantage of the reduction in import duties.

Marico’s operations in Egypt employ about 500 people and are estimated to benefit more than 1,000 Egyptians indirectly in terms of job opportunities.

You can read the entire article here.