The Hindu Business Line : Egypt keen on more co-operation with India

In 2006, Indian companies invested $700 million in Egypt and the figure could reach $850 million by June end, which is the end of the Egyptian financial year 2006-07. Current trade between the two countries stands at $1.7 billion.

Dr Ziad Bahaa El Din, Chairman of General Authority for Investment and Free Zones, Egypt Government's one-stop shop for foreign investment, said that there is a synergy and similarity between the two countries and Egypt can add value to Indian ventures in IT, BPO, services and financial sectors. Indian companies are going global and Egypt offers good road and IT infrastructure, educated workforce with knowledge of one additional European language along with English, he said.

Dr El Din said Egypt could offer 1.5 billion customers to Indian companies through trade agreements with Gulf countries, Israel and the US. Under the new rules for FDI, any company can open its operations in Egypt within three days. There are no caps on investment and very little entry barrier for trade, he said.

Satyam Computers has already set up a business development centre in Cairo.

Mr V. Agarwal, Director and Senior Vice-President of Satyam, said that when the company decided to expand its low-cost operation outside India, Egypt was the natural choice as the IT workers had good software and Arabic language skills which can also be used for tapping the Kuwaiti and Saudi Arabian markets. The current headcount is 300 but the company plans to increase it to 2,000 by end of August, he said.

In 1993, the first Indian company to set shop in Egypt was Aditya Birla group's carbon black manufacturing facility. Recently, consumer products major Marico Ltd has captured 50 per cent market share in the Egyptian hair care market by acquiring two Egyptian brands.

Mr Brajesh Bajpai, Marico's Country Head for Egypt, said that the country is a sourcing hub for North African region, Europe, Syria and Iraq. It offers advantages in terms of labour, manufacturing cost and lower custom duty. Indian companies in Egypt can leverage economical power tariffs, subsidised natural gas and motor fuel to their own advantage, he said.

Dr Mahmoud Mohieldin, Minster for Investment, Egypt, said that a number of Indian companies with interest in textiles, fertilisers, diamonds, petrochemicals and services have approached the Egyptian Government with proposals which are under consideration. The government is offering special economic zones with 100 per cent tax holiday, flexibility in labour laws and granting licences within 72 hours.