JEDDAH, 29 June 2003 — A sustained campaign against counterfeiting could effectively tackle the menace, according to Jeddah Chamber of Commerce and Industry Chairman Adel Faqeeh.

“Consumers have to be made aware of what is genuine and what is counterfeit. Such an awareness can come only through a continuous drive to educate consumers,” he said at a press conference yesterday.

Asked about the trend toward acquisitions and mergers, Faqeeh, chairman of the Savola Group, said: “There is a tendency to keep an open mind about proposals for acquisitions and mergers.”

He was speaking on the sidelines of a presentation he gave to review the group’s annual performance related to its products — edible oils, snack food, packaging, glass and sugar.

Asked whether the group would consider acquisition or mergers, he said: “We’re always open to ideas. We have to have an open mind. Our policy is to do what is best for our shareholders. The opening up of the market augurs well for us. Credibility and transparency are our guiding principles.”

Faqeeh announced that the group’s market capitalization had reached SR5 billion, which puts it in a unique position. “After capitalizing from reserves, the group’s capital has been raised to SR800 million, while forecasts indicate that profits will reach 37 percent compared to a previous forecast of 30 percent. It is also expected that the group sales will reach SR4 billion with a net profit of SR285 million at the end of this year.”

Faqeeh emphasized that Savola operated according to a set of fundamental principles which included reinforcing its ability to adapt to change and draw on lessons learned. He revealed that the group’s retail section, Panda, would launch a chain of hypermarkets next year.

“Sales have doubled over the last three years to reach SR1.5 billion with a net profit of SR15 million, and are expected to increase to SR1.6 billion by the end of 2003 and to SR3.5 billion by the end of 2006.”

Highlighting the performance of Al-Marai, a company managed independently of the group, Faqeeh projected that 2003 would be another successful year as the company already holds 40 percent share of the Saudi and GCC countries’ dairy markets.

“Al-Marai owns 50,000 cows, the largest herd in the Kingdom. Sales reached SR1.6 billion in 2002, and SR1.7 billion has been allocated for expansion.”