Poultry industry in Egypt: Wadi Group’s leadership

Interview with Tony Freiji, President & CEO of Wadi Group

Let’s start with your personal opinion on the current economic and business environment in Egypt. How have the latest developments during the past months been impacting the development? What is your outlook for the second half of 2014?

It’s no secret that the developments in the country in the past three years were dire, to say the least. The past few months have been like an injection of fresh air, of optimism, of positive energy into the business environment of the country. Egypt is moving in a positive direction. And today, with the new government being formed, we are extremely optimistic about the outlook for Egypt.

Moving onto your sector, what is your personal evaluation of the Egyptian agribusiness and food processing at the moment?

If we look at this particular sector, Egypt is poised to play a leading role in supplying quality food and processed foods to the rest of the world, particularly Europe, the Eastern United States and the rest of the Mediterranean Basin. The agribusiness industry in Egypt is going through a series of transformations. The government has an important role to play in addressing the issues faced by the agro industrial sector of the country.  However, we feel that with some serious tweaking, and easing of some cumbersome legislation, the sector can contribute more to the GDP of the country.

What would be your advice to the new government on policies related to your sector and business? What would be your call for action?

I am happy you asked this question. In my personal opinion, it’s high time that the Egyptian government partners with the private sector. The private sector in Egypt is extremely resourceful simply because they had to do things in an unconventional way to get through the bureaucracy and “red-tape”. Key to launching the new Egypt will be public sector partnerships with the private sector in the areas of legislation and creating the right environment for the sector to grow.

With regard to the group itself, please share with us the story of the Wadi Group, your history, your regional presence, main sectors you represent and basically details about your subsidiaries.

We started by my older brother in Lebanon back in 1957.  We are “chicken” people. Poultry is our life – we eat, sleep and breathe it; we know everything about poultry. During the Lebanese war, we had to move out of Lebanon to Syria, Jordan, and Saudi Arabia. I personally came to Egypt thirty years ago. I am happy I dropped anchor here. Egypt has been good for me personally and for our Group, eventually becoming our flagship. The growth of the Group in Egypt was mostly driven by building on synergies, building on businesses that support our core business. This has been key in our growth in Egypt, in Sudan and we are now looking at expanding into other countries in the area. Apart from poultry, Wadi Group has been growing in the food sector, particularly olive oil, fresh vegetables and fruits grown particularly for export. We have branched into feed manufacturing on a large scale as well as logistics. If we look at the whole picture, the core business supports our other companies. Today our core businesses are poultry and agro food. We employ over 3,500 team members, who are present in 7 industries.

Can you describe the Wadi culture? What is special about the company?

We pride ourselves in our culture which is based primarily on integrity, honesty, quality and customer service. I believe what drives us, what differentiates us from others, is our ability to innovate and think outside the box—not at the managerial level alone, but also among our employees on every level. In our culture, people are allowed to voice their opinions. They are allowed to contribute in ways and means that will enhance the productivity and efficiency of our businesses.

Looking to the future, what are your projects for 2014 – 2015? You recently announced an investment of 460 million Egyptian pounds over the next two years for expansion of projects. Would you elaborate more on that?

For our short-term investments, we will be primarily focusing on two sectors: feed and its logistical support functions as well as agriculture. We intend to build two more feed plants. As for agriculture, our objective is to increase our land bank with the intent to grow agronomic crops in the south of Egypt.

Are you looking beyond borders of Egypt for further regional expansion as well?

We are. We are primarily focusing on East Africa. We believe in the organic growth opportunities for us in the region, naturally expanding south from our operations in Sudan. 

As the CEO of the company, what challenges do you face on a daily basis?

That is a tough question. The challenges we face in Egypt today are related to government bureaucracy, which we hope is going to be simplified in the near future. Labor issues need to be addressed in a more methodical manner that is coherent to the needs of modern business. Another challenge includes logistical issues in terms of moving products quickly, safely and efficiently, whether inside the country or for export purposes.

What would be your personal vision for the country? What would you like to see in 5 years’ time?

Our vision for the future is very robust. We are looking at more than doubling our revenues in the coming five years. I believe it is a very achievable plan.

Since you have been in Egypt for the past 30 years what is your personal vision for the country?

Egypt is the cradle of innovation and work. It helps people to add value. We are committed to our presence here and we look forward to growing our business in Egypt and from Egypt to the countries around us.

Could you elaborate on the competitive advantage you have, considering you are not new here in the market. Why do you think your group is different? Is it the management or the people? What is your approach in facing challenges in business? What gives you a competitive edge over your competitors?

Our competitive advantage arises from the fact that we deliver what we promise – it is quality, integrity and honesty. It comes from the fact that our people are empowered at every level.  A company of our size cannot be managed by just one person. Our people are empowered to deliver and are accountable. We innovate and that gives us this competitive advantage. We are always ahead of the game. We drive the market. I always tell my team: “the business that we do not drive, we get out of”. So you are either number one in whatever you do or you get out. That is my message to my team.

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