Lakhasly

Marketing Management In Chipsy: As Chipsy knows, good marketing has become an increasingly vital ingredient for business success.As the first industrial potato chip company, Egypt Trade ensured that its product was distributed nationwide, with the crispy snacks, now branded as Chipsy, becoming so popular that "Chipsy" became the nation's generic term for potato chips. In the 1990s Egypt Trade added the Crunchy brand to its product lineup. Crunchy was a crinkle cut potato chip which was also produced in its Abu Sier facility. A second company, Misr for Food Industries, was formed at that time to concentrate on producing the Chipsy brand. In October 1998 extraordinary general assemblies of the two companies merged them into one umbrella company - Chipsy for Food Industries. Three years later, In 2001, Chipsy for Food Industries merged with Tasty Foods Egypt, a leading private sector snack food company. Today, Chipsy for Food Industries is fully owned and operating under the management of PepsiCo, a $28 billion multinational firm with subsidiaries such as Frito-Lay, Pepsi-Cola, Gatorade, Tropicana, Quaker Foods, and Aqua Fina. Under PepsiCo's management the company has experienced major upgrades in all areas of its business and major product quality improvements across the portfolio through the implementation of international best practices and a continual striving to keep the brand on the top of its market segment. In addition, the distribution network has been expanded through the addition of a large fleet of trucks and consumer-based innovations have been implemented in all three categories of local PepsiCo operations: potato chips, extruded products and wafer biscuits. PRODUCT: Chipsy's single-serve and family-serve products are available in an array of flavours catering to a wide variety of consumer tastes. Those tastes are identified based on extensive marketing research showing consumer preferences and trends. Currently, seven flavors, including salt, tomato, and chicken, kebab, cheese, chili and lemon and oregano, are enjoyed by consumers of all ages. From the type of potatoes used in production right through to packaging materials and design, all aspects of the production cycle are carefully studied to ensure high quality and continuous development. Local and international experts supervise production and ensure that the highest international quality measures are applied. As a result of this expertise, Chipsy for Food Industries holds the ISO 9001/2000 certificate for quality and management efficiency. Chipsy for Food Industries has not limited itself to the single brand, Chipsy, in the potato chips market but has a line of other local and international brands that are greatly valued by Egyptian consumers. These brands include Lays, the classic leading international brand, and Crunchy, the ridged potato chip brand especially favoured by children. Al-Abtal is another Chipsy for Food Industries brand that has quickly captured the imagination of consumers. Al-Abtal has rapidly attained the leading market position in the extruded The first celebrity to star in a Chipsy advertisement was actor Hesham Selim in 1998. Chili and Lemon is the most flavour favoured by Egyptian consumers. Things you didn't know about Chipsy 20 SUPERBRANDS corn snack categocorn snack category that accounts for 50% of salty snacks market. It comes in four flavors: pepper and lemon, pizza, cheese, and tomato. The brand's popularity has been built on a successful cartoon episode featuring action heroes such as Batman, Superman and Lets & Go. It targets children aged ten to twelve, who are fascinated by adventures and heroic characters. In addition to being the major player in the salty snack market, Chipsy for Food Industries also has a strong presence in the sweet snacks market with Samba, a wafer biscuit. Samba is among the top three national brands in the wafer biscuits category, and includes a wide variety of high quality products including chocolate and vanilla cream filled wafers and chocolate-coated wafers RECENT DEVELOPMENTS The continuous development and progress taking place in all departments of Chipsy for Food Industries is based on well-designed plans. These plans are a result of coordination and combined teamwork across all parts of the business. In 2003 Chipsy for Food Industries completely revitalized its portfolio, offering new propositions to consumers to meet growing demand and introducing new flavours along with a new and innovative packaging. In 2004 Chipsy for Food Industries took the snack market by storm with Chipsy Action, a new line catering to teenagers and young adults. Chipsy Action is a ridged chip with thick cut potatoes which satisfies consumer demand for a stronger crunch and more pronounced potato taste. Chipsy Action comes in three modern and innovative flavors -- fajita, margarita and twist -- and in an ideal size for its target audience. Chipsy Action packs are 75% larger than Chipsy to cater the needs of teens and young adults moving lifestyles. Chipsy Action also taps into this market segment's habits and fast-paced lifestyle with contemporary packaging design that has bolstered its image. In line with its celebrity endorsement strategy to bring consumers closer to their favorite stars, in 2004 Chipsy signed Egypt's top footballers to be spokespersons for the flagship brand. Football is the nation's most popular sport, drawing the attention and admiration of millions of Egyptians of all ages. Representing the next generation in Egyptian sports, Chipsy stars for 2004 include Ahmed Bilal, Hossam Ghaly, Ahmed Hassan, Tarek El-Saeid, Hany Saeid and Tarek El-Said. Also in 2004, Chipsy has signed Egypt's leading movie star Ahmad El Sakka as a brand representative and spokesperson. Ahmed El Sakka is the number one action movie star in Egypt whose latest movie was a hit in the Egyptian Box office PROMOTION: In the rapid pace of today's world more and more brands are vying for consumers' attention, and not just via traditional media channels. This means that it is vital to ensure that a consumer's attention is captured rapidly and exclusively so that the consumer is focused on your brand and its qualities, engaging all the elements of the marketing mix working synergistically in order to maximise the impact of the message. Chipsy for Food Industries has always been keen to design promotional campaigns which both stimulate and motivate its target audiences. Consumers of all ages enjoy Chipsy's instant win promotion, where Egyptian pounds of varied amounts are randomly distributed inside potato chip bags. Setting an example of fair play, Chipsy has always evenly distributed such monetary prizes and has registered the exact values and amounts of money distributed with the Ministry of Social Affairs. When targeting children, Chipsy tries to build in educational components to its promotions. Instant win opportunities with computers as grand prizes are designed to increase children's knowledge and familiarity with technology. As well, in pack premium promotions provide children with a game where individually bagged pieces combine to form shapes, encouraging creativity and at the same time building sales. As always, free trading cards featuring popular international cartoon characters are a firm favourite promotional item. BRAND VALUES: A national icon, Chipsy has reigned as the leading macro-snack food champion for more than twenty years. Whether munched alone from the bag or served as an accompaniment to meals, Chipsy potato chips and corn snacks are universally popular. The diversity of flavours and affordability has made Chipsy products the preferred brand for Egyptians of all ages. Marketing plan plan Situation Analysis: Every organization faces a lot of problem at present time so it became necessary for every organization that before setting any objective carried out situation analysis in order to recognize strength, weakness, opportunities and threat present in our organization. According to Sally and John, marketing plans are "the written document or blueprint for implementing and controlling an organization's marketing activities related to a particular marketing strategy".The value of the potato chip market has escalated rapidly since the beginning of the millennium and continues to grow, driven by Chipsy for Food Industries' continuous development and constant dedication to consumer satisfaction ACHIEVEMENTS: Chipsy for Food Industries is the clear leader in the potato chips category and drives the majority of the growth in the market.Snack giant Chipsy Food Industries has formed a joint venture with PepsiCo's local subsidiary Tasty Foods, with a nominal capital of GBPE 500 million, the financial institution advising Chipsy said on January 9.1-Formulated side: Marketing concept, tools, frameworks, and issues 2-creative side: Real innovation , creativity , and passion o Designing the right product o Only the best is good enough for customers o Marketed : goods , services , events& experience , persons , places& properties , organizations , information and ideas.In a step toward vertical integration, and to ensure the highest quality of its raw materials, Chipsy started growing its own potatoes in 1992 on dedicated farms in El-Salhyia, Noubaria and Assiut.Karim Kamal, research analyst at EFG-Hermes Securities Brokerage, said PepsiCo will own 83 percent of the new company, to be called Chipsy International, while 17 percent will be owned by the management of Chipsy Food Industries.Macro-snacks include salty snacks such as potato chips and extruded corn products, as well as biscuits, chocolates, candy, chewing gum and cakes.Create product belonging and position among buyer's mind Marketing strategies : To achieve these objective we implement various strategy.Chipsy enjoys 99% brand awareness and has the highest frequency of consumption among any macro-snack brand.Chipsy for Food Industries employs approximately 2,000 employees in three active plants and 30 branches.The first potato chip brand in Egypt, it began in 1982 with one small factory in Abu Sier, west of Cairo, and has grown to become the biggest brand in the macro-snack market.Main aim of various chips industry to produce high quality chips in differentdifferent ingredients such as SPICY, BUTTER, SALTED, LEMON.Market: Potato chips are one of the top categories in Egypt's macro-snack market, as proved by a recent retail audit.A successful marketing plan is able to improve organizations' profits and growth, uses in objective setting and monitors results.Firstly, dynamic marketing environment will lead to uncertainty, threats and opportunities for marketers.Marketing managers who success to know changes in environment through situation analysis can lead their companies to capitalize on opportunities and cope with threats created by changes.Chipsy Food Industries and Tasty Foods both produce snacks under brand names Chipsy and Lays.The potato chip category also has the highest penetration of the salty snack segment, at over 80%.An industry pioneer, Chipsy for Food Industries was formed in the 1980s and has been steadily growing ever since.To meet escalating demand for Chipsy products, production lines have witnessed significant growth.Today Chipsy is the only salty snacks company in Egypt, and one of the few in the world, that grows its own potatoes.The Chipsy brand originated when four former military officers and two businessmen formed the first local company to produce potato chips, Egypt Trade.Marketing objective: After situation analysis we became able to known our organization strength, weakness, opportunities and threat present in environment.The brand rapidly became the market leader and still maintains its leading position, and in 2003 reached a new milestone in sales with the highest number of cases ever sold in Egypt in a single year.In addition to the original factory, two factories which have been built in Sixth of October City and Assiut apply the most modern technology in the industry.There are two major reasons to explain why situation analysis plays a vital role in developing marketing plan.Then, systematically analyzing situational environments in order to identify our customers and understand their needs and taste.There are certain opportunities in chips industry, such as increase people taste, increase market and market share through integrated PR, and advertisement and promotional campaign.The brand itself has gone from strength to strength and the Chipsy name has become synonymous with success in the market sector.So to gain a successful market plan it is necessary to understand the current situation comprehensively and trends affecting the future of the organization.Besides opportunities there is a lot of threat that create barrier for entry in chips industry.Use excessive advertising especially using media preferred by the target market.Mainly for the youth Marketing Mix Strategies : ?Must of chips brand such as lays, uncle chips, bingo, fun pop jump in to Indian market by producing high quality of chips.Form that alls lays captured very high share in the market.HISTORY: Chipsy is a prime example of an Egyptian success story.It provides a lot of support in setting of objective.There may be a lot of marketing objective, some are as follow: ?To Launch new variety chips with new flavors.Affluent institutes ?They produce chips in different ingredients to capture more market share.They have 40 percent and 20 percent of the market share respectively, Kamal said.There's a constant tension between the formulated side and it's creative side.Create awareness among target audience.Target market: Urban personality: ?Prosperous young professional ?Students and cosmopolitan ?This is mostly done to capture youth attention.Pricing range from 3 to 40.Chips do not need too much promotion.It is done mostly by fair, E - commerce and agent ?"This deal is part of our investment strategy for 2001," said Sawiris."This deal is part of our investment strategy for 2001," said Sawiris.Increase market share ??Increase sale by 50% in 6 month from the launch of public campaign ????????"We expect the value of the deal to increase.""We expect the value of the deal to increase."

Marketing Management In Chipsy:
As Chipsy knows, good marketing has become an increasingly vital ingredient for
business success. There’s a constant tension between the formulated side and it’s
creative side.
1-Formulated side: Marketing concept, tools, frameworks, and issues 2-creative side:
Real innovation , creativity , and passion
• Designing the right product
• Only the best is good enough for customers
• Marketed : goods , services , events& experience , persons ,
places& properties , organizations , information and ideas.
Market: Potato chips are one of the top categories in Egypt’s macro-snack market, as
proved by a
recent retail audit. Macro-snacks include salty snacks such as potato chips and
extruded corn products, as well as biscuits, chocolates, candy, chewing gum and cakes.
The potato chip category also has the highest penetration of the salty snack segment, at
over 80%. Chipsy enjoys 99% brand awareness and has the highest frequency of
consumption among any macro-snack brand. The brand itself has gone from strength to
strength and the Chipsy name has become synonymous with success in the market
sector. An industry pioneer, Chipsy for Food Industries was formed in the 1980s and
has been steadily growing ever since. The brand rapidly became the market leader and
still maintains its leading position, and in 2003 reached a new milestone in sales with
the highest number of cases ever sold in Egypt in a single year. The value of the potato
chip market has escalated rapidly since the beginning of the millennium and continues
to grow, driven by Chipsy for Food Industries’ continuous development and constant
dedication to consumer satisfaction
ACHIEVEMENTS: Chipsy for Food Industries is the clear leader in the potato chips
category
and drives the majority of the growth in the market. To meet escalating demand for
Chipsy products, production lines have witnessed significant growth. In addition to the
original factory, two factories which have been built in Sixth of October City and Assiut
apply the most modern technology in the industry. Chipsy for Food Industries employs
approximately 2,000 employees in three active plants and 30 branches. In a step toward
vertical integration, and to ensure the highest quality of its raw materials, Chipsy started
growing its own potatoes in 1992 on dedicated farms in El-Salhyia, Noubaria and
Assiut. Today Chipsy is the only salty snacks company in Egypt, and one of the few in
the world, that grows its own potatoes.
HISTORY: Chipsy is a prime example of an Egyptian success story. The first potato
chip brand in
Egypt, it began in 1982 with one small factory in Abu Sier, west of Cairo, and has grown
to become the biggest brand in the macro-snack market. The Chipsy brand originated
when four former military officers and two businessmen formed the first local company
to produce potato chips, Egypt Trade. As the first industrial potato chip company, Egypt
Trade ensured that its product was distributed nationwide, with the crispy snacks, now
branded as Chipsy, becoming so popular that “Chipsy” became the nation’s generic
term for potato chips. In the 1990s Egypt Trade added the Crunchy brand to its product
lineup. Crunchy was a crinkle cut potato chip which was also produced in its Abu Sier
facility. A second company, Misr for Food Industries, was formed at that time to
concentrate on producing the Chipsy brand. In October 1998 extraordinary general
assemblies of the two companies merged them into one umbrella company - Chipsy for
Food Industries. Three years later, In 2001, Chipsy for Food Industries merged with
Tasty Foods Egypt, a leading private sector snack food company. Today, Chipsy for
Food Industries is fully owned and operating under the management of PepsiCo, a $28
billion multinational firm with subsidiaries such as Frito-Lay, Pepsi-Cola, Gatorade,
Tropicana, Quaker Foods, and Aqua Fina. Under PepsiCo’s management the company
has experienced major upgrades in all areas of its business and major product quality
improvements across the portfolio through the implementation of international best
practices and a continual striving to keep the brand on the top of its market segment. In
addition, the distribution network has been expanded through the addition of a large
fleet of trucks and consumer-based innovations have been implemented in all three
categories of local PepsiCo operations: potato chips, extruded products and wafer
biscuits.
PRODUCT: Chipsy’s single-serve and family-serve products are available in an array of
flavours
catering to a wide variety of consumer tastes. Those tastes are identified based on
extensive marketing research showing consumer preferences and trends. Currently,
seven flavors, including salt, tomato, and chicken, kebab, cheese, chili and lemon and
oregano, are enjoyed by consumers of all ages. From the type of potatoes used in
production right through to packaging materials and design, all aspects of the
production cycle are carefully studied to ensure high quality and continuous
development. Local and international experts supervise production and ensure that the
highest international quality measures are applied. As a result of this expertise, Chipsy
for Food Industries holds the ISO 9001/2000 certificate for quality and management
efficiency. Chipsy for Food Industries has not limited itself to the single brand, Chipsy, in
the potato chips market but has a line of other local and international brands that are
greatly valued by Egyptian consumers. These brands include Lays, the classic leading
international brand, and Crunchy, the ridged potato chip brand especially favoured by
children. Al-Abtal is another Chipsy for Food Industries brand that has quickly captured
the imagination of consumers. Al-Abtal has rapidly attained the leading market position
in the extruded The first celebrity to star in a Chipsy advertisement was actor Hesham
Selim in 1998. Chili and Lemon is the most flavour favoured by Egyptian consumers.
Things you didn’t know about Chipsy 20 SUPERBRANDS corn snack categocorn snack
category that accounts for 50% of salty snacks market. It comes in four flavors: pepper
and lemon, pizza, cheese, and tomato. The brand’s popularity has been built on a
successful cartoon episode featuring action heroes such as Batman, Superman and
Lets & Go. It targets children aged ten to twelve, who are fascinated by adventures and
heroic characters. In addition to being the major player in the salty snack market,
Chipsy for Food Industries also has a strong presence in the sweet snacks market with
Samba, a wafer biscuit. Samba is among the top three national brands in the wafer
biscuits
category, and includes a wide variety of high quality products including chocolate and
vanilla cream filled wafers and chocolate-coated wafers
RECENT DEVELOPMENTS The continuous development and progress taking place in
all departments of Chipsy for Food Industries is based on well-designed plans. These
plans are a result of coordination and combined teamwork across all parts of the
business. In 2003 Chipsy for Food Industries completely revitalized its portfolio, offering
new propositions to consumers to meet growing demand and introducing new flavours
along with a new and innovative packaging. In 2004 Chipsy for Food Industries took the
snack market by storm with Chipsy Action, a new line catering to teenagers and young
adults. Chipsy Action is a ridged chip with thick cut potatoes which satisfies consumer
demand for a stronger crunch and more pronounced potato taste. Chipsy Action comes
in three modern and innovative flavors -- fajita, margarita and twist -- and in an ideal
size for its target audience. Chipsy Action packs are 75% larger than Chipsy to cater the
needs of teens and young adults moving lifestyles. Chipsy Action also taps into this
market segment’s habits and fast-paced lifestyle with contemporary packaging design
that has bolstered its image. In line with its celebrity endorsement strategy to bring
consumers closer to their favorite stars, in 2004 Chipsy signed Egypt’s top footballers to
be spokespersons for the flagship brand. Football is the nation’s most popular sport,
drawing the attention and admiration of millions of Egyptians of all ages. Representing
the next generation in Egyptian sports, Chipsy stars for 2004 include Ahmed Bilal,
Hossam Ghaly, Ahmed Hassan, Tarek El-Saeid, Hany Saeid and Tarek El-Said. Also in
2004, Chipsy has signed Egypt’s leading movie star Ahmad El Sakka as a brand
representative and spokesperson. Ahmed El Sakka is the number one action movie star
in Egypt whose latest movie was a hit in the Egyptian Box office
PROMOTION: In the rapid pace of today’s world more and more brands are vying for
consumers’ attention, and not just via traditional media channels. This means that it is
vital to ensure that a consumer’s attention is captured rapidly and exclusively so that the
consumer is focused on your brand and its qualities, engaging all the elements of the
marketing mix working synergistically in order to maximise the impact of the message.
Chipsy for Food Industries has always been keen to design promotional campaigns
which both stimulate and motivate its target audiences. Consumers of all ages enjoy
Chipsy’s instant win promotion, where Egyptian pounds of varied amounts are randomly
distributed inside potato chip bags. Setting an example of fair play, Chipsy has always
evenly distributed such monetary prizes and has registered the exact values and
amounts of money distributed with the Ministry of Social Affairs. When targeting
children, Chipsy tries to build in educational components to its promotions. Instant win
opportunities with computers as grand prizes are designed to increase children’s
knowledge and familiarity with technology. As well, in pack premium promotions provide
children with a game where individually bagged pieces combine to form shapes,
encouraging creativity and at the same time building sales. As always, free trading
cards featuring popular international cartoon characters are a firm favourite promotional
item.
BRAND VALUES: A national icon, Chipsy has reigned as the leading macro-snack food
champion for more than twenty years. Whether munched alone from the bag or served
as an accompaniment to meals, Chipsy potato chips and corn snacks are universally
popular. The diversity of flavours and affordability has made Chipsy products the
preferred brand for Egyptians of all ages.
Marketing plan plan
Situation Analysis: Every organization faces a lot of problem at present time so it
became necessary for every organization that before setting any objective carried out
situation analysis in order to recognize strength, weakness, opportunities and threat
present in our organization. According to Sally and John, marketing plans are “the
written document or blueprint for implementing and controlling an organization’s
marketing activities related to a particular marketing strategy”. A successful marketing
plan is able to improve organizations’ profits and growth, uses in objective setting and
monitors results.
So to gain a successful market plan it is necessary to understand the current situation
comprehensively and trends affecting the future of the organization. There are two
major reasons to explain why situation analysis plays a vital role in developing
marketing plan.
Firstly, dynamic marketing environment will lead to uncertainty, threats and
opportunities for marketers. Marketing managers who success to know changes in
environment through situation analysis can lead their companies to capitalize on
opportunities and cope with threats created by changes.
Then, systematically analyzing situational environments in order to identify our
customers and understand their needs and taste. There are certain opportunities in
chips industry, such as increase people taste, increase market and market share
through integrated PR, and advertisement and promotional campaign. Besides
opportunities there is a lot of threat that create barrier for entry in chips industry.
Marketing objective:
After situation analysis we became able to known our organization strength, weakness,
opportunities and threat present in environment. It provides a lot of support in setting of
objective. There may be a lot of marketing objective, some are as follow:
 Increase market share
 To Launch new variety chips with new flavors.
 Increase sale by 50% in 6 month from the launch of public campaign
 Create awareness among target audience. Use excessive advertising especially
using media preferred by the target market.
 Create product belonging and position among buyer’s mind
Marketing strategies :
To achieve these objective we implement various strategy.
Target market:
Urban personality:
 Affluent institutes
 Prosperous young professional
 Students and cosmopolitan
 Mainly for the youth
Marketing Mix Strategies :
 Main aim of various chips industry to produce high quality chips in differentdifferent ingredients such as SPICY, BUTTER, SALTED, LEMON. This is mostly
done to capture youth attention. They produce chips in different ingredients to
capture more market share. Must of chips brand such as lays, uncle chips, bingo,
fun pop jump in to Indian market by producing high quality of chips. Form that alls
lays captured very high share in the market.
 Pricing range from 3 to 40.
 Chips do not need too much promotion. It is done mostly by fair, E – commerce
and agent
 Snack giant Chipsy Food Industries has formed a joint venture with PepsiCo’s
local subsidiary Tasty Foods, with a nominal capital of £E 500 million, the
financial institution advising Chipsy said on January 9.

 Karim Kamal, research analyst at EFG-Hermes Securities Brokerage, said
PepsiCo will own 83 percent of the new company, to be called Chipsy
International, while 17 percent will be owned by the management of Chipsy Food
Industries.
 Chipsy Food Industries and Tasty Foods both produce snacks under brand
names Chipsy and Lays. They have 40 percent and 20 percent of the market
share respectively, Kamal said.
 "We believe that the merger will result in a strong new entity with a considerable
share of the local market," he said, adding that Chipsy International had plans to
expand its operations in the Middle East.

 CISCO, NCR IN $100 MILLION DEAL WITH EGYPTIAN INTERNET COMPANY
 US high-tech companies Cisco Systems Inc. and NCR Corp. have won a $100
million contract to provide an Egyptian firm with high-speed Internet access, it
was announced on January 16.
 A spokeswoman for the Egyptian firm, Noor Advanced Technologies, said that
Cisco’s share in the deal is $60 million and NCR’s $40 million.
 "These initial sums are only for the first phase of the project, which will begin by
the end of the year," she said. "We expect the value of the deal to increase."
 The Internet is still a limited medium in Egypt, with only about 80,000 subscribers
among an estimated population of 65 million.

 EGYPTIAN, KUWAITI COMPANIES SIGN £E 200 MILLION FACTORY DEAL

 On January 17, four Egyptian companies, along with a Kuwaiti firm, signed a £E
200 million deal to build a factory to produce pipes for transporting natural gas.
According to an oil ministry spokesman, the four Egyptian state-run companies –
Petrojet, Enppi, Gasco and a military industry company – will construct the
factory in the city of Port Said along with Kuwait Pipe Industries and Oil Services
Co. Construction of the factory will start immediately and will take about 18
months.

 EGYPT’S ORASCOM TO PAY MOTOROLA $171 MILLION FOR MIDEAST,
ASIA STAKES
 Orascom Telecom will pay $171 million, in four installments, to Motorola Inc. for
its mobile-phone operations in Egypt, Jordan and Pakistan, OT chairman Naguib
Sawiris confirmed on January 15.
 In January, OT bought Motorola’s entire 26.1 percent stake in Jordanian mobiletelephone service Fastlink, as well as the American firm’s entire 30- percent
stake in Pakistani mobile communications company Mobilink. This brings OT’s
share of the two companies to an impressive 91.6 percent and 68.69 percent
respectively.
 OT also bought an additional 10.15 percent of Egyptian holding company MobiNil
from Motorola, bringing its total ownership in MobiNil to 28.75 percent. France
Telecom also raised its stake in MobiNil to 71.25 percent, after buying Motorola
shares earlier this month at a cost of $252 million.
 "This deal is part of our investment strategy for 2001," said Sawiris. "We have
allocated to the three countries [Egypt, Jordan and Pakistan] 53 percent of our
capital investment in our 2001 budget."

 GASC WHEAT, CORN SUPPLY SEEN LASTING UNTIL MAY 1
 The General Authority for Supply Commodities, the state’s main wheat buyer,
has 1,833,408 metric tons of wheat mixed with corn in storage – enough to cover
subsidized bread consumption until May 2001, a Supply and Home Trade
Ministry spokeswoman said on January 8.
 The Supply and Home Trade Ministry buys corn from local growers for GASC’s
massive subsidized bread program, which uses a mixture of 20 percent corn and
80 percent wheat.

 GASC BUYS 510,000 TONS OF US WHEAT
 The General Authority for Supply Commodities on January 18 bought 330,000
metric tons of US soft white wheat and 180,000 tons of US soft red winter wheat
– the largest single wheat purchase in recent years. The wheat, for which GASC
paid between $109.43/ton and $113.33/ton, is to be shipped between February
15 and March 31, said GASC vice chairman Mohamed Abdelrazek.
 Snack giant Chipsy Food Industries has formed a joint venture with PepsiCo’s
local subsidiary Tasty Foods, with a nominal capital of £E 500 million, the
financial institution advising Chipsy said on January 9.

 Karim Kamal, research analyst at EFG-Hermes Securities Brokerage, said
PepsiCo will own 83 percent of the new company, to be called Chipsy
International, while 17 percent will be owned by the management of Chipsy Food
Industries.
 Chipsy Food Industries and Tasty Foods both produce snacks under brand
names Chipsy and Lays. They have 40 percent and 20 percent of the market
share respectively, Kamal said.
 "We believe that the merger will result in a strong new entity with a considerable
share of the local market," he said, adding that Chipsy International had plans to
expand its operations in the Middle East.

 CISCO, NCR IN $100 MILLION DEAL WITH EGYPTIAN INTERNET COMPANY
 US high-tech companies Cisco Systems Inc. and NCR Corp. have won a $100
million contract to provide an Egyptian firm with high-speed Internet access, it
was announced on January 16.
 A spokeswoman for the Egyptian firm, Noor Advanced Technologies, said that
Cisco’s share in the deal is $60 million and NCR’s $40 million.
 "These initial sums are only for the first phase of the project, which will begin by
the end of the year," she said. "We expect the value of the deal to increase."
 The Internet is still a limited medium in Egypt, with only about 80,000 subscribers
among an estimated population of 65 million.

 EGYPTIAN, KUWAITI COMPANIES SIGN £E 200 MILLION FACTORY DEAL

 On January 17, four Egyptian companies, along with a Kuwaiti firm, signed a £E
200 million deal to build a factory to produce pipes for transporting natural gas.
According to an oil ministry spokesman, the four Egyptian state-run companies –
Petrojet, Enppi, Gasco and a military industry company – will construct the
factory in the city of Port Said along with Kuwait Pipe Industries and Oil Services
Co. Construction of the factory will start immediately and will take about 18
months.

 EGYPT’S ORASCOM TO PAY MOTOROLA $171 MILLION FOR MIDEAST,
ASIA STAKES
 Orascom Telecom will pay $171 million, in four installments, to Motorola Inc. for
its mobile-phone operations in Egypt, Jordan and Pakistan, OT chairman Naguib
Sawiris confirmed on January 15.
 In January, OT bought Motorola’s entire 26.1 percent stake in Jordanian mobiletelephone service Fastlink, as well as the American firm’s entire 30- percent
stake in Pakistani mobile communications company Mobilink. This brings OT’s
share of the two companies to an impressive 91.6 percent and 68.69 percent
respectively.
 OT also bought an additional 10.15 percent of Egyptian holding company MobiNil
from Motorola, bringing its total ownership in MobiNil to 28.75 percent. France
Telecom also raised its stake in MobiNil to 71.25 percent, after buying Motorola
shares earlier this month at a cost of $252 million.
 "This deal is part of our investment strategy for 2001," said Sawiris. "We have
allocated to the three countries [Egypt, Jordan and Pakistan] 53 percent of our
capital investment in our 2001 budget."

 GASC WHEAT, CORN SUPPLY SEEN LASTING UNTIL MAY 1
 The General Authority for Supply Commodities, the state’s main wheat buyer,
has 1,833,408 metric tons of wheat mixed with corn in storage – enough to cover
subsidized bread consumption until May 2001, a Supply and Home Trade
Ministry spokeswoman said on January 8.
 The Supply and Home Trade Ministry buys corn from local growers for GASC’s
massive subsidized bread program, which uses a mixture of 20 percent corn and
80 percent wheat.
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 GASC BUYS 510,000 TONS OF US WHEAT
 The General Authority for Supply Commodities on January 18 bought 330,000
metric tons of US soft white wheat and 180,000 tons of US soft red winter wheat
– the largest single wheat purchase in recent years. The wheat, for which GASC
paid between $109.43/ton and $113.33/ton, is to be shipped between February
15 and March 31, said GASC vice chairman Mohamed Abdelrazek.