The United Tobacco Co. (UTC) has started manufacturing cigarettes in the Egyptian market as it has obtained a government license to establish a cigarette factory in 2022, according to Ahram Online.
This step considers an ending of the decades-old monopoly by the state-owned Eastern Co.
UTC is jointly owned by Philip Morris International (PMI) and Eastern Co., which acquired a 24 percent stake in the firm in a 100 billion Egyptian pounds deal.
The acquisition transaction in the UTC compensates for the absence of PMI proper in the Egyptian market. PMI products are available in the local market under the label Made by UTC, Eastern company’s CEO stressed.
Eastern Company’s revenues increased by six percent in FY2021/2022 to post 67.9 billion pounds, up from 63.8 billion pounds in FY2020/2021.
Phillip Morris Misr LLC and Eastern Company have raised their cigarette prices twice so far in 2022 due to increased production costs, including the depreciation of the Egyptian pound against the US dollar.
PMI has shipped 9.9 billion cigarettes and 0.3 billion heated-tobacco units in Egypt during the first half of 2022, claiming 22.5 percent share of the local market.
