Companies

Dabur reopens Egypt plant

Our Bureau New Delhi | Updated on February 10, 2011


The manufacturing unit that the FMCG company has in Ramadan City, which was shutdown last week after protests gripped the country, was reopened on Monday upon return of normalcy.

“We have already commenced production at the unit and operated one shift at the plant, starting yesterday. Production would be increased gradually to two-shifts in a few days,” said Mr PD Narang, Group Director, Dabur India Ltd.

The plant makes hair oils, creams and shampoos. The company has a 15 per cent share in the hair and cream market of Egypt. Egypt contributes to 2.5 per cent of Dabur's total turnover of Rs 3,400 crore, according to a company spokesperson.

Back to routine

Other Indian companies such as Asian Paints and Marico who had also shut their plants in Egypt due to the unrest, have reportedly resumed operations partially.

Emami, which recently bought a manufacturing facility in the African nation for Rs 25 crore, has some manpower there and is still assessing the situation. “We will wait and watch and see how the situation develops before taking a step,” said a company official.

According to investment bank Credit Agricole, the political unrest in the country that began on January 25, has cost the economy of Egypt $310 million a day.

But even as protestors demanding the ouster of President Mr Hosni Mubarak, continued to gather at Tahrir Square in Cairo, many companies reportedly limped back to business on Tuesday.

Shares of Dabur India closed on Wednesday at Rs 90.50 a share on the Bombay Stock Exchange, down 1.42 from the previous close.

Published on February 09, 2011

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