By John Lee.
Edita Food Industries, an Egyptian snack food producer, has announced its entry into the Iraqi market through a strategic partnership with Baghdad-based Tuama Jebur Abbas (TJA).
The move marks a significant milestone in Edita's regional expansion strategy as the company acquires a 49-percent stake in TJA, a family-run snack manufacturer, for $8 million via a capital increase.
Under the agreement, Edita will establish its first local production facility in Iraq, signaling a shift from an export-driven model to local manufacturing. Over the next three years, the company plans to invest $27 million to expand operations, double production capacity, and introduce its popular brands to Iraqi consumers.
The partnership will create a new entity, Edita Iraq, operating under a UAE-based holding company that grants Edita management control. The deal includes TJA's existing factory, which houses three production lines -- two for cakes and one for biscuits. These facilities will be upgraded to meet increased demand and efficiency standards, leveraging Edita's technical expertise and manufacturing know-how.
Hani Berzi, Edita's Group Chairman and CEO, described the venture as pivotal to the company's growth strategy, adding:
"Iraq's growing economy and untapped snack food market present a unique opportunity for us to establish a national champion. We're excited to partner with TJA, whose local expertise will help us bring Edita's innovation to Iraqi consumers."
(Source: Edita)
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