Indian Firms Hit by Egyptian Unrest

Indian consumer companies have temporarily ceased operations in Egypt amid the on-going political crisis, adding to fears that prolonged unrest may take a toll on earnings.

 

Livemint reports that firms such as Marico, Dabur, Asian Paints have shut down their Egyptian units and are monitoring the situation. According to Livemint, Egypt has been quite attractive to Indian firms as it offers tax cuts, preferential trade treaties, and swift approvals for business, in addition to high growth.

 

"If the unrest in Egypt is resolved over the next few weeks, we would see a minor impact on business on the supply side. However, if it continues for a longer period of time then the slowdown in Egypt and the neighbouring economies could impact FMCG demand,” an analyst with Edelweiss Capital told Livemint.

 

 

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