Sana Al Reem, an Iraq-based importer and distributor of food stuff, is looking for investors for a planned hygiene joint venture (JV) in Iraq, co-founder and managing director Harith Hussein told Mergermarket.
As part of its strategy to diversify income, Sana Al Reem plans to establish a hand soap and cleaning products manufacturing facility as a JV, Hussein said, adding that the planned JV will sit on a 3,000-square metre site and will initially produce two types of hand soap.
[Is this land that Sana Al Reem already owns?]
Advisors representing potential JV investors are welcome to approach the company, he noted.
Total JV investment is estimated at around USD 10m. Sana Al Reem will contribute land, part of the funding and marketing support, while the JV investor is expected to provide capital and operational expertise in the cleaning and hygiene sector. The venture could be structured as a 50/50 partnership or with a flexible shareholding arrangement, according to the director.
[“Sana Al Reem will contribute… part of the funding…” – Any idea how much?]
The company is seeking to partially fund its contribution through local bank loans, though Hussein noted that the approval process in Iraq can be lengthy, the director said, noting that Sana Al Reem generates annual revenues of about USD 10m.
The joint venture could later expand the product portfolio beyond hand soaps as the business scales, he added.
Hussein described the JV plans as a natural step for the group, which intends to use its established sales channels, logistics network and brand reputation to support the JV.
The move will allow the company to diversify revenues, while relying on the same warehousing and distribution system it uses for food, supported by its experience in raw materials sourcing, processing, and retail partnerships, as well as its focus on hygiene and quality standards, he explained.
Hand soap represents about 90% of Iraq’s cleaning products market, underscoring the scale of demand. Products from the new plant are expected to compete with those of international hygiene brands, as Iraq currently imports most of its hygiene goods, with only small workshops and very basic factories operating in the segment, he added.
[Do we know how much Iraq’s cleaning products market is worth?]
The company, which employs around 140 people, operates as a food importer and distributor, sourcing directly from manufacturers and supplying through a wide delivery network, according to the director.
Established more than 17 years ago, Sana Al Reem specialises in food imports, packaging and distribution, sourcing from 32 countries and offering a portfolio of over 750 products, according to its website.
[Do we know who owns Sana Al Reem – presumably Harith Hussein has a large stake; who is/are the other co-founder(s)?]
