M.O. Group for Food Industries plans to increase the local content in its products to 80% next year, up from about 60% currently. The company also intends to invest 100 million EGP in adding new products such as chocolate and biscuits to its product line.

M.O. Group aims to implement an ambitious plan to increase exports and deepen its customer base across various markets, targeting exports to comprise more than half of its sales. The company also plans to expand its coverage to a larger segment of provinces in the coming period, as it currently has outlets and wholesale warehouses in 11 provinces and plans to cover the rest of the country.

Hamdi El-Abraq, Chairman of M.O. Group for Food Industries, stated that the group is currently investing approximately 100 million EGP to launch new production lines for biscuits and chocolate.

Product Diversification and Increasing Demand

El-Abraq explained that the company operates in the field of solid sugar industries, such as candy and lollipops, and seeks to add new production lines for biscuits and chocolate.

He pointed out that the expansions came after a thorough market study and the identification of new opportunities for biscuits and chocolate products, which will contribute to diversifying the products and meeting the growing demand in local and international markets.

Increasing Local Content and Enhancing Local Production

El-Abraq emphasized that the company is currently focusing on deepening local industry and increasing the percentage of local content in its products, in line with the state's directions to develop national industries and reduce reliance on imports. The company aims to increase the percentage of local raw materials used in its production from 60% currently to about 80% by 2025.

Partnerships with Local Suppliers

El-Abraq noted that the company seeks to expand partnerships with local suppliers to ensure the availability of raw materials of the required quality, especially sugar and glucose. The company also invests in research and development to develop new products that rely on local components.

Local Expansion and Collaboration with Major Retail Chains

The company has about 11 distribution points in Egypt's governorates and deals with major retail chains and supermarkets in Egypt, such as Carrefour, Hyper One, and Kazyon, enhancing its presence in the local market.

Increasing Exports and Global Penetration

The company’s exports of candy, chocolate, and lollipops reached $8 million last year, achieving 80% growth compared to 2022. The company plans to increase its exports to exceed 50% of its total production by next year, alongside a plan to penetrate new markets in Europe and America.

Participation in International Exhibitions

M.O. Group is preparing to participate in four international exhibitions by the end of the year in Turkey, France, Dubai, and America, contributing to building trade networks and expanding its customer base.

Challenges and Opportunities

Despite current investment opportunities, the company faces some challenges related to infrastructure in some industrial cities, such as roads and communication networks.

The company also faces challenges in rising prices of raw materials, energy, and transportation. El-Abraq calls for the need to reduce bank interest rates and provide trained technical personnel to operate and maintain new production lines.

Government Support and Continuous Development

El-Abraq stressed the need to support external exhibitions and quickly refund export burdens to enhance the ability of local factories to access new markets, noting the importance of marketing research and building effective distribution networks in targeted markets.