Egypt’s Al Shrouk Scan & Lab is targeting major expansion across the country over the next four years at a total investment of $20 million, its chief told Zawya Projects.

Chairman and Managing Director Abdullah Mostafa said the expansion plans encompass a new branch in Palm Hills with an investment of approximately $8 million. The facility will include radiation therapy capabilities, with medical equipment alone expected to cost around $3 million.

He said the company also plans to establish another radiation therapy centre in the R3 district of the New Administrative Capital on a site spanning 3,000 square metres (sqm).

New facilities are planned in 5th Settlement, Alexandria, Shebin El Kom and Tanta, Mostafa said, adding that the expansion programme is scheduled for completion by 2030.

He said the group operates advanced medical equipment supplied by General Electric, including a closed MRI machine valued at $1.75 million, and an open MRI machine valued at $500,000

The company also holds healthcare quality certification from GCI.

Revenue and investment growth

Mostafa said he expects company revenues to increase by 200 percent annually following launch of the radiation therapy facilities.

The group currently operates five branches and has invested approximately 1 billion Egyptian pounds ($19 million) to date.

Current revenues stand at around EGP140 million ($2.7 million), he said, adding that the group has contracts with Cleopatra Hospital Group and other healthcare chains.

Financing history

Mostafa said total financing secured by the company has reached approximately $9 million to date. Bedaya Fund for Financing Small and Medium Enterprises had acquired a 33 percent stake in the company at the start of operations in 2014, when capital stood at EGP 3.2 million ($61,194.85). In the same year, the 6th of October branch was established on an area of 1,000 sqm at a cost of EGP 8 million (152,987.12).

In 2018, the company obtained EGP70 million ($1.3 million) from SAIB Bank under the SME financing initiative. This was followed by EGP8 million ($152,987.12) from Nile Leasing Company, EGP48 million ($917,405.28) from National Bank of Egypt (MBE) and EGP35 million ($669,221.35) from Plus Leasing Company.

He added that the group plans to list on the Egyptian stock exchange once its branch network expands to eight locations.

The company currently employs around 400 staff members across its branches.

(1 US Dollar = 52.29 Egyptian Pounds)

(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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