Marico, Asian Paints resume partial operations in Egypt

NEW DELHI: India's consumer goods firms Marico and Asian Paints today said they have resumed manufacturing operations partially in Egypt, even as the political crisis in the African nation showed no sign of abating.

Last week, Marico, Dabur and Asian paints had shut down production in Egypt in the wake of the political unrest.

While Marico and Asian Paints have partially started production from Sunday, comments could not be obtained from Dabur on its latest situation in Egypt.

"The situation seems to be improving and if the present trend continues, we should see more predictable days ahead, inshallah," Marico, Chief-Finance, HR and Strategy Milind Sarwate told PTI, adding the firm re-opened its Cairo office on Sunday.

"...But we expect the curfew timings (currently evening to 6 am) may restrict the office working, for some time," Sarwate added.

Marico factories have also re-opened and for the time being working in a single shift, he said.

Similarly, India's leading paints company, Asian Paints also said two plants of its subsidiary, SCIB Chemicals SAE, Egypt, which were shut due to prolonged curfew, have restarted operations partially with effect from February 6.

The two manufacturing units are located about 50 km from Cairo.

According to sources, the company's decision to re-start the operations, however, did not suggest any improvement in the situation in the country.

Egypt contributes significantly to the Middle East (ME) sales of Asian Paints.

The ME region witnessed a turnover of Rs 650 crore out of the total international revenues of Rs 1,215 crore registered by the company in 2009-2010.

Marico currently sells hair care brands Fiancee, Hair Code and Parachute in the region. The Middle East and North African (MENA) region contributes around 7-8 per cent to the company's turnover.

Last fiscal, the firm's turnover was Rs. 2,030.85 crore. While Asian Paints' scrips closed at Rs 2,506.80 per share, up 1.06 per cent from the previous close, Marico's scrips closed at Rs 113.60 per share, down 0.96 per cent from the previous close on the Bombay Stock Exchange.

Despite calls for his ouster, Egypt's President Hosni Mubarak remained defiant on Monday as talks between his government and the opposition failed.

Demonstrators are still on the streets of Cairo demanding the immediate resignation of Mubarak, who has been ruling the nation for three decades.