Al Ghurair Foods predicts 20% increase in turnover

Dubai: Al Ghurair Foods (AGF), one of the region's leading flour and edible oil producers, is expecting to increase its turnover by 20 per cent to Dh3 billion in the upcoming year.

"The year 2008, the company had a Dh2.5 billion turnover in the food division and is targeting Dh3 billion. This year, margins have been much better. We've made money but not as much as expected," chairman Essa Al Ghurair said recently.

The company which produced 22,000 tonnes of flour and 5,000 tonnes of edible oil last year currently has a presence in over 50 countries.

Al Ghurair announced a 7 per cent growth in the company since 2008. "The main growth has come from exports to other countries, mainly for grain and finished products such as oil," he said.

AGF currently holds 40 per cent of the local flour market. Out of the total amount of flour produced, 20 per cent is exported and 80 per cent is used locally.

"We produce 30 per cent of household necessities; sugar, rice, flour, eggs, and will be marketing our new cholesterol care flour next month," Al Ghurair said.

Expansion

Expansion plans include a new factory which will open in Dubai this year. The extra mill which is due to start production in April will have an initial capacity of 40,000 tonnes and a maximum capacity of 60,000 tonnes. The company's other flour mills are located in Algeria, Sudan, Lebanon and Sri Lanka with a combined milling capacity of over 5,500 metric tonnes.

A new silo storage unit in Algeria is also due to be finished in the fourth quarter of this year. Future plans also include maintenance of current investments and focusing on its export market in the Middle East, of which Saudi Arabia represents the biggest portion.

"The focus for the next year is to focus on our investments and refine them. We also aim to increase all capacities to the maximum," said Al Ghurair.