Egypt Uprising Affects Dabur,Emami

The ongoing political unrest in Egypt has reportedly not just caused volatile financial conditions in the Gulf market but apparently its impact is spreading to other regions as well.

Today, leading Indian FMCG firms including Dabur and Emami asserted that their businesses in Egypt might suffer a setback owing to the prevailing disturbances in the African nation.

Dabur which has hair oil production plant in Egypt has closed its operations since yesterday.

"If the unrest continues for a longer period of time, there might be some impact. It would be too early to comment on the same," said Dabur India Chief Executive Officer Sunil Duggal.

Egypt contributes nearly 15% to Dabur's overseas business, which figured approximately Rs 600 crore last fiscal while it accounts for almost 2.5 % of the overall turnover of the company.

"We are still watching the developments in Egypt. If the unrest is resolved over the next few days and weeks, we would not see much of any impact on business," Duggal said.

On the other hand, the Kolkata-based company Emami which recently bought a manufacturing facility worth Rs 25 crore in Egypt will not be much affected by the turbulent situation in the region as it has just launched its business.

Emami International Director Prashant Goenka said, "We have just started operation in Eygpt. Our business is nascent there. Whether there will be an impact because of the political turmoil, it is too early to say... There will be some short-term impact but whether it will have in a big way, we have to wait for sometime."

Presently, Egypt contributes up to 2% to the company's overseas business, which stood at around Rs 135 crore last fiscal.

References:

http://timesofindia.indiatimes.com/business/india-business/Dabur-shuts-Egypt-plant-Emami-cagey-over-unrest/articleshow/7405262.cms

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