New Delhi, Feb 1 (PTI) Leading Indian FMCG firms Daburand Marico Industries today said they have shut down theirplants in Egypt due to the ongoing unrest in the Africannation, while another company Emami is assessing the situationfor its future course of action.
Dabur India Chief Executive Officer Sunil Duggal told PTIthat the company has shut temporarily its hair oil productionplant in Egypt since yesterday.
"If the unrest continues for a longer period of time,there might be some impact. It would be too early to commenton the same," Duggal said.
Marico also said it has shut down its two factories inthe African nation in the wake of political unrest in thecountry.
"Egypt and the MENA region is an important market forMarico. In view of the current situation, our factories havebeen temporarily closed as a safety measure," a Maricospokesperson said.
For Dabur, Egypt accounts around 15 per cent to Dabur''soverseas business, which stood at around Rs 600 crore lastfiscal while it contributes about 2.5 per cent to its overallturnover.
"We are still watching the developments in Egypt. If theunrest is resolved over the next few days and weeks, we wouldnot see much of any impact on business," Duggal said.
While Marico did not specify how much revenues itgenerates from Egypt, the firm currently sells hair carebrands Fiancee, Hair Code and Parachute in the region.
The Middle East and North African (MENA) regioncontributes around 7-8 per cent to the company''s turnover.
Last fiscal, the firm''s turnover was Rs 2,030.85 crore.
"Prolonged closure of production facilities in Egyptwould, therefore, cause a progressive drying up of the supplypipeline for the MENA region. We had initiated as a backmeasure, plans to supplement the MENA supply chain withsupplies from India," the company has said in filing to theBombay Stock Exchange.
Another FMCG firm Emami said the impact will not be muchas it has just started its business in the country. TheKolkata-based company had recently bought a manufacturingfacility for around Rs 25 crore.
"We have just started operation in Eygpt. Our business isnascent there. Whether there will be an impact because ofthe political turmoil, it is too early to say... There will besome short-term impact but whether it will have in a big way,we have to wait for sometime," Emami International DirectorPrashant Goenka said.
At present, Egypt contributes up to two per cent to thecompany''s overseas business, which was at around Rs 120 crorelast fiscal.
Currently, the company sells skincare products andhaircare range in the country.