India’s Embee International is reportedly undertaking the process of acquiring 33,000 acres in Egypt where the group will invest Rs5,000 cr (US$750 million) for the production of pulses and vegetables in the country. This investment by Embee International represents the largest investment made in Egypt by an Indian company, and the first investment made by an Indian company in Egypt’s agriculture sector.

 

Embee, which has been involved in the textile industry in Egypt for 28 years, has stated that the land is being granted to the company from the Egyptian government under the One Million Feddan land reclamation project launched by President Adbul Fattah Al Sisi. According to the terms of the program, the land will be provided under a 50 year lease agreement which is open for renewal at the end of the term. The fees for leasing the land are yet to be determined.

 

The One Million Feddan project is one of the most far-reaching programs initiated by Al Sisi after gaining office in June 2014. The goal of the program is to reclaim one million acres of farmland to increase agricultural production in the country which is heavily reliant upon imports.

 

Embee International director, Sanjay E Khushalani, states that the company has identified a local partner with 100 years experience in agriculture, and plans to produce sesame seeds, tomatoes, onions, pulses, and other vegetables to be sold both domestically in Egypt and in neighboring markets.

 

“Egypt has very good soil quality. We are waiting for the green light from the government which we are expecting by the next month. We will be ready to start work on the ground in the next 6-8 months,” said Khushalani.

 

Egypt and India have long been mutually important trading partners, with India being Egypt’s sixth largest trading partner and its second largest export destination. India’s imports from Egypt for 2014-2015 were valued at $1.74 billion, and trade between the two countries was valued at $4.76 billion between April 2014 and March 2015.