Several tobacco manufacturers have asked the Federation of Egyptian Industries to change the conditions of a manufacturing license auction issued by the Industrial Development Authority (IDA), reports Zawya.
According to the companies, the IDA conditions protect Eastern Co.’s market share by preventing the new company from producing cigarettes at the same price point as the monopoly’s mass-market Cleopatra brand, which accounts for 98 percent of Eastern’s revenues.
On March 21, the tobacco manufacturer announced that the IDA has invited companies to the tobacco industry through tendering a new cigarette production license.
Eastern could own 24 percent of the to-be-established company without paying its share in the cost of the license.
The monopoly reported a 14 percent year-on-year increase in its net profit in the second half of 2020, recording EGP2.54 billion ($161.52 million).
Eastern company’s product portfolio includes cigarettes, cigars, pipe tobacco and molasses tobacco as well as cigarette filter rods and homogenized tobacco.