Trade with Egypt hit; Dabur, Marico suspend operations

Subscribe to Oneindia News

New Delhi, Feb 1 (PTI) India''s trade with Egypt standsdisrupted and companies such as Dabur and Marico havesuspended their operations in the strife-torn African country.

Ten Indian firms, including Wipro, Ranbaxy, IFFCO, Daburand Marico, have their wholly-owned subsidiaries in differentparts of Egypt.

Two major FMCG companies - Dabur and Marico-- said theyhave shut down their plants in Egypt temporally, while Emamiis keeping a close watch on the situation.

"Egypt and the MENA (Middle East and North Africa) regionis an important market for Marico. In view of the currentsituation, our factories have been temporarily closed as asafety measure," a Marico spokesperson said.

Dabur India CEO Sunil Duggal said that the company hasshut down temporarily hair oil production.

The merchandise trade between India and Egypt has alsobeen disrupted as traders fear of looting and arsons.

"At this point of time, there is disruption in trade --both export and import dispatches from Egypt have been kept onhold," said Ajay Sahai, Director General of Federationof Indian Export Organisation (FIEO).

While merchandise exports aggregated USD 1.4 billion,imports totalled USD 1.7 billion in the last fiscal.

With pick-up in demand, India''s total exports areprojected to grow by 20-25 per cent in 2010-11.

Exports have been impacted as the situation in Egypt isturning for the worse with tens of thousands of peoplejoining the street protests against President Hosni Mubarak.

There were reports of looting and arson, resulting incommercial activities there.

Besides, the wholly-owned subsidiaries in Egypt,companies like Tata Motors, Aptec, Iflex and Essar Global havetheir regional offices for doing business in that country,according to information compiled by Ficci.

"It is very unfortunate that our business is gettingaffected...the problems will definitely impact our bilateraltrade," Assocham Secretary General D S Rawat said.

Please Wait while comments are loading...