Algeria's private Cevital group reaches 1.6 billion dollars sales

An Algerian private food industry group achieved a 50 percent annual growth between 1999 and 2007 thanks to the variation of the group's activities since 1999, according to its president Issad Rabrab.

“Cevital reinvests all achieved profits while 54 percent of sales are paid as taxes to the Public Treasury,” Rabrab told Echorouk.Cevital has launched a project to produce flat glass next Algiers covering national needs and exporting one ship loaded with the product per week to North African and European countries.Rabrab said his group considers dealing with a buses factory with a Brazilian partner in addition to a Samsung factory which will employ 3,000 workers.

From few shares to the biggest private group in Algeria

Cevital is considered as the biggest private group in Algeria with $1.6 billion of sales in 2007. The group’s first investment step was in 1991 when it held 20 percent of shares in the National Metal company (S.N. Métal). In 1974, the company was employing 55 workers sparking fears among the rest of the four shareholders who thought the government would nationalize the company.

In 1975, Rabrab set up Profilor metal company employing 200 workers in 1979. The same company bought a competitor public enterprise in Oran province

(west of Algiers).

Many companies were later established including Metalor company. In 1988, MetalSider factory was set up in Blida province (70 km west of Algiers) which reached $300 billion sales in 1992 with 1,000 employees.Cevital’s president said he tried to buy ENCG’s unit (national company of body fat) in Algiers but bureaucracy was an obstacle for him. In 1998, he established his own factory in Bejaia (west of Algiers) with daily production of 1,800 tons of a quality better than European products.

“This allowed us to cover the total national demand and bring Algeria to exporting phase.”

“We also invested in margarine production and industry of sugar which is exported now to Tunisia, Libya, Morocco, the Middle East, Africa and even to Europe with moderate quantities because of European restrictions on sugar.”

Cevital’s investment in agriculture will achieve local self-sufficiency in potatoes seeds and production

An agriculture project will be soon carried out to produce potatoes seeds and potatoes for consumption.Rabrab said the project will cover the total local demand of potatoes seeds in 2010 in addition to important production of Algeria’s consumption market needs. Algeria suffered from a potatoes crisis in summer; which required intervention from high authorities to solve it. In this regard, Rabrab said there are solutions for every problem especially that Algeria is a rich country and can overcome all its problems.

“The potatoes crisis inspired me to invest in agriculture field in order to avoid other crisis in other agricultural products.”

20 billion dollars to establish giant complex

Rabrab told Echorouk he had launched 5 big projects since 2005 including a metal and water factories as well as a ready-built construction company and CeviAgro project to produce potatoes seeds.He talked about a giant complex located in Kabjenat area in Bejaia which will include the biggest aluminum complex in association with an international group from Europe, America and Australia. It will also include a complex of ships manufacturing and many oil refineries.

“This project will cost $20 billion with the contribution of many shareholders to share risks in this kind of projects,” said Rabrab.”Kabjenat complex will create 1000 small and middle-seized companies around it in different activities,” he added.Rabrab said he expects reaching $5 billion sales in 2010 and his group will be the biggest employer of more than 25,000 Algerians.

“We will set up supermarkets with intenational standards and two touristy complexes”

Rabrab’s group is going to launch a series of big supermarkets in big cities with international standards employing 7,000 to 10,000 workers.He added that services projects will also launched including two touristy ones with international standards intended to businessmen.”I am looking for operators who have experience in this field because my group is not involved in it.”

Algeria to export 900,000 tons of sugar abroad

Cevital group started dealing with foreign trade in 1995 through sugar but this business did not last for a long time. The investor withdrew because of non honest competition.After years of experience in export, Cevital considers exporting sugar to Europe next year. The group will ask the State’s support to intervene to reduce taxes on exporters to Europe which are estimated at 200 percent. On the other hand, Europe sells 150 tons to Algeria per year with 0 percent tax.The group which will buy 3 national units offered for sale is expected to produce more than the need of the national market which is estimated at 1 ton per year.Cevital exports sugar to African and Arab countries and even European ones as part of sugar used to produce substances meant for export.

Cevital’s debts do not exceed 15 percent of shares

Rabrab said Cevital’s debts are estimated at 8 billion Algerian dinars. “This sum is equal to 15 percent of the group’s money which is estimated at 65 billion dinars.”

He added that he benefited from a foreign financial support of 15 million Euros which he used to launch the sixth biggest group in Algeria after oil companies.

Rabrab who did not reveal the name of this foreign financial institution said the current financial situation of Cevital groups allows it completing the debt at any desired time.

The group’s money constitutes 130 percent of money meant for investment. “That means the difference is positive with 30 percent.”

“I will become the richest man in Algeria if I sell all my possessions”

Issad Rabrab refuses to admit that he is the richest man in Algeria though all economic indicators put him on the top of Algerian businessmen list.“It is necessary to make the difference between Issad as a person and Cevital group,” he said.

“If we speak about the group, we can say that it is the biggest and the richest one in Algeria except the big public companies including Sonatrach and Sonalgaz

.”

“But if we talk about Issad Rabrab’s personnal banking account, I can say that I belong to people who are on a modest income,” he added.

On the other hand, Rabrab said if he buys all what he possesses he can be the richest man in Algeria.

Issad considers himself no more than an investor alongside his family at Cevital group which produces 140 percent of national needs in terms of vegetable oil.

“I refuse to keep any of my financial resources sleeping in my personal account neither in the group’s one. I believe in an investment logic which often pushes to invest all profits

.”

“Invested dinar brings other new dinars,” Rabrab said.