Edita

completed

      The proposed investment is up to US$35 million Loan to Edita Food Industries S.A.E (http://edita.com.eg) (“Edita” or the “Company”) to be committed over a one-year period.  Edita, a publicly listed company on the Egypt and London stock exchanges, is a leading branded bakery products company which produces and sells baked goods and confectionaries in Egypt and exports to 16 countries.  The IFC loan will help finance the company’s capital expenditure, expansions in Egypt, Morocco and potentially other countries.Edita was founded and started construction of its first production plant in 1996. Edita currently has five production facilities in Egypt encompassing 29 production lines. The first production plant (E6) which started operations in 1997 is located in the Giza industrial area  (https://goo.gl/maps/22YJWMx6vxG2). E6 plant has 10 production lines producing croissants, cakes, and baked snacks and employs approximately 1400 workers.In 2003, Edita acquired and upgraded the Hostess factory (E10) in 10th of Ramadan industrial area, Cairo (https://goo.gl/maps/YYNZy2vDzYT2). E10 has four production lines, produces only cakes and employs approximately 800 workers. Edita established its third plant (E15) in 2011 in the industrial area of Beni Suef Governorate (https://goo.gl/maps/nm3FoJUUVYs). E15 has four production lines producing hard candy, soft candy, jelly, and lollipops and employs approximately 260 workers. In 2012, Edita established its fourth facility (E7) in Polaris industrial park in Giza (https://goo.gl/maps/GByqxLDYMiy).  E7 has nine production lines producing croissants, cakes, wafers, and rusks, and employs approximately 1500 workers.  The fifth industrial facility (E8) started operations in 2017 and is located in Polaris Zamil in Giza (https://goo.gl/maps/N7zZPAEuvxQ2). E8 currently has two production lines, producing wafers and donuts with plans to introduce nine more lines. E8 employs approximately 220 workers. The annual production capacity of all plants, as of end of 2017 is 159,400 tons. Approximately 50% of the production capacity is allocated for cakes, about 30% for croissants, and the remaining 20% is for rusks, wafers, and candies. The production processes include mixing raw ingredients, forming, oven baking, cooling tunnels/ aeration towers, injection/filling, coating, and packaging. In Egypt, the company delivers products from its 21 distribution centers spread across 27 governorates to more than 66,800 wholesale and retail customers via its 603 vehicles.  In March 2018, Edita signed a joint venture agreement with Dislog Group, a leading local FMCG distributor in Morocco, to establish a production facility in Morocco. The terms of the agreement stipulate that Edita will be the majority owner of the venture with 51% stake. Commercial operations have begun with exports of Edita’s products to Morocco, while the second stage will entail the establishment of a production facility by the end of 2019.