JEDDAH, 1 June 2008 -- Savola Group plans to increase its world market share of cooking oil from two to 10 percent within five years, Dr. Sami Mohsen Baroom, the company's managing director, told Arab News.
Savola, a major food manufacturing company, currently owns 15 cooking oil factories in Egypt, Sudan, Morocco, Turkey, Iran, Uzbekistan and other countries.
"As part of our expansion program, we have decided to purchase farmlands in many countries including Sudan and Egypt, in order to cultivate cooking oil seeds such as sunflower and corn seeds," Baroom said. He said these measures were taken as part of the Kingdom's strategic plan to ensure food security and Savola's bid to grab a good portion of world market.
Savola's share in the cooking oil market of Egypt and Iran has increased to 40 percent while in other countries such as Sudan, Morocco, Algeria, Turkey and Uzbekistan its share ranges from 10 to 40 percent.
Baroom also disclosed his group's plan to purchase majority shares in companies and factories that produce cooking oil and other products in different countries. He said the departure of giant cooking oil producers such as Unilever from the market would result in redrawing the world market share map in the coming months.
Savola's cooking oil production has increased by more than 100 percent during the last three years. "Last year alone we produced more than 1.7 million tons of cooking oil that carried international brands," he added.
Baroom, who recently presented Savola's success story at the World Economic Forum, said an increase in food production would contribute to reducing prices of foodstuff worldwide. "We expect that Savola's sugar and rice production will increase further to achieve food security in these two essential products and meet shortages in Egypt, Iran, Turkey and other countries," he said.
Established in 1979, Savola is now one of the most successful and fastest growing multinational food companies in the Gulf and the Middle East Region. It is also penetrating North African and Central Asian markets, with a wide portfolio of businesses including edible oils, sugar, noodles, packaging, real estate and franchising.
Savola has major investments in Al-Marai Dairy Company (26 percent), Herfy Foods Company (70 percent), and Jordanian Tameer Company (5 percent). Panda supermarkets, a subsidiary of the group, is the largest food chain in the Middle East.
By Galal Fakkar
© Arab News 2008
