Interview with Sara ElHoseiny – Export manager At Arab Development Company
Arab Development Company (ADC) has been established back in 2008 and developed to be one of the leading business entities in Textile Sector. In the earliest; ADC starts by importing yarn and distributing it locally, over the years; ADC has developed its business model to include manufacturing and exporting Polyester Yarn and Polyester Stable fiber.
First of all please let us know about Arab Development Company’s (ADC) history and it’s success story in the textile industry.
ADC business model was agile to include manufacturing Home-Textile Products under private label, our focus on providing quality to our customers gave us an edge to expand and to specialize in Egyptian cotton products, and hence establishing our own Luxurious Bath Textile Brand “Hammam Home” to meet the growing markets.
Hammam-Home is moving on in solid steps in the local market and has lately moved out to the international market, also our production capacities is granting us great flexibility to keep working under a private label.
Our highly qualified export team are delivering our products to our customers everywhere, we are available in Turkey, KSA, Netherlands, Italy, France, Kenya, Libya, Canada, Caribbean Islands etc.
What is ADC’s range of products? And specification?
ADC has three main product categories:
- Yarn with main focus on polyester yarn, air-covered yarn, single & double covered yarn.
- Recycles polyester staple fiber with the main focus on solid range and Hollow Conjected Silicon (HCS) range.
- Home Textile Products with many sub-categories: Towels, Bathrobes, bath mats, Bed Linens, Sheets, Duvet covers… and more with high flexibility in designs and sizes that fit all needs.
ADC is always focusing on quality standards in both its products and services, this is reflected in having our certificates of management system ISO 9001 and OEKO-Tex for yarn.
How do you evaluate the textile industry in EGYPT in general? You can add any number, export-import figures and statistics and …
The Egyptian Textile Industry Dates Back To The Time Of The Pharaohs. The Country Serves As A Crossroads For The Middle Eastern Region’s Vertically Integrated Textile Industry Of Egypt. Egypt Is Involved In The Entire Manufacturing Process, From Cotton Agriculture Through Yarn, Fabric, And Ready-To-Wear Garment Production.
Textile Production Accounts For 25% Of The Overall Industries, With Home Textiles Accounting For 12%, Cotton Yarn Accounting For 8%, And Other Textiles Accounting For 5%. The Public Sector Dominates The Home Textile Manufacturing Companies In Egypt, Accounting For 50% Of Spinning, 60% Of Hemming, And 60% Of Weaving. 90% Of The Garment Industry Is Owned By The Private Sector.
The textile sector is exporting its products worldwide with a major contribution to both the USA 30% and Turkey 30%, Italy 7%, Spain 5%, Germany 5% and others 23%
It is expected that Egypt will have a bigger contribution ahead as the government is injecting a huge investment in its production lines re-new, in addition, a lot of effort is paid to restructuring the governmental companies in order to give a higher fitness when approaching international markets.
How name percent of your products export to international markets and how many percent use in Egypt’s local market? Where are your main export destinations and countries?
ADC has had a big interest in exportation since its establishment, the management board has realized early the importance of expanding internationally as foreign exposure always increases awareness and sharpens the production abilities which in turn reflects on the whole company’s performance in the local market and in the international market.
Currently, ADC export operations exceed 45% of its total turnover during 2021/2022 which is considered as a success story with respect to all shipping constraints and pandemic issues that the whole world have exposed to during the last period because of the COVID-19 and lately Russian-Ukrainian war.
ADC main export destinations are in Turkey, Italy, Netherlands, KSA, Kenya and Caribbean Islands and the expansion plan is looking more for Africa, the Middle East as well as EU countries.
As a textile expert, how do you evaluate the polyester yarn market and new investments globally and especially in Egypt? What are the pros and cons?
The global demand for the Textile Yarn Market was valued at USD 11.9 Billion in 2019 is expected to reach USD 16.0 billion in 2026 with an anticipated growth rate of 4% between 2020 and 2026.
Textile is one of the basic needs of the human population. The textile industry is witnessing a remarkable demand, especially in Asia Pacific regions due to high population rates. The adoption of new trends globally and the introduction of new fabrics are some of the major factors driving demand for textile yarns.
Although the Egyptian government is focusing on lifting-up textile industry by providing subsidies and customs facilities, the polyester yarn trade balance is showing 23% deficit in 2021, this means that the Egyptian market yet has an investment opportunity for local and foreign investors.
How do you evaluate Egypt’s government support for the textile industry? How government can help Egyptian textile manufacturers?
Egyptian Government is putting a lot of effort to support the textile industry and to grow export figures within their current country growth plan, a bundle of facilities are designed to support the expansion of investments such as (but not limited to) defining further industrial areas, grant some facilities for having required land equipped with infrastructure, many loans initiatives from CBE, on the other hand; other bundles of facilities are given to support export target through direct export subsidy and/or customs systems to grant importation facilities for export purposes.
More and above; Egyptian Commercial Service (ECS) offices are spread worldwide and are focusing on studying attracting business opportunities, supporting Egyptian exporters and supporting the government in concluding free trade agreements with different countries.
Production and consumption of polyester yarn and fibre in the last decade grow fast. What are the reasons for this?
Generally, Textile industry is related to an increase in population that reflects in a direct increase in demand for Yarn and Fiber (with all their related categories). this affects directly the fabric/apparel industry and also has a direct effect on all affiliate industries such as home textiles, bedding fabrics, furnishing, carpets and others.
Growth in consumption is mainly based on considering polyester yarn as less costly alternative, it affects the efficiency of the cost equation for producers and hence can deliver a quality product at a convenient price.
Contribution of polyester yarn in the different textile branches enhances the composition of many products in terms of appearance and usage, It is widely used in suspenders, shirts, skirts, children’s
clothing, silk scarves, cheongsam, ties, handkerchiefs, home textiles, curtains, pyjamas, bows, gift bags, sleeves, fashion umbrellas, pillowcases, pillows, etc. It is most often used to produce textiles that require GRS certification or used together with other types of yarn to manufacture core spun yarn or blended yarn.
Let us know about your latest products, research and development, new investment and …
ADC is already has retained a remarkable reputation between its customers and its competitors, Currently, ADC is concerned with expanding in applying new sustainable and eco-friendly polyester yarn full production line to provide practical sustainability and cleaner production solutions that help to reduce the loss of energy, and of course, increases ADC production capabilities. Adding the new production line will increase its monthly production capacity by almost 15%.
ADC is also putting focus and investment in marketing its retail home textile product line branded “Hammam-Home” locally and internationally, ADC is contracting new capacities to fulfil all its sales plans, Also, We are working on a solar energy substitute in our new factory that will also have polyester recycling production line.
Do you know how many companies are active in the polyester sector in Egypt?
Egypt ranked as the 10th country importing polyester yarn worldwide with 2.9% contribution in 2021 with a market concentration of 0.38 which means that the market is competitive and is open for more import operations from other producers.
Although local consumption is exceeding local production, Egypt is trying to push on exporting such products. Egypt’s exports represent 0.1% of world exports for this product, it’s ranking in world exports is 33, export concentration is 0.47.
At the end you can add any other information that you think is interesting for readers in EMEA region and a better interview.
Our Company ADC is now looking for all possible chances with the emerging countries in EMEA regions, we are looking for expansion across borders not only by marketing our products abroad but also by looking into investment/integration opportunities.
We are encouraging every reader/investor that is interested by this attractive industry to get closer by looking into our LinkedIn page or to contact us directly: [email protected]
