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Our Strategy
new brand representations and a wider
product portfolio. GB Auto remains the
clear partner of choice for any OEM
(original
equipment
manufacturer)
and we expect our positive reputation
to help us grow our relationship with
current partners as well as enter into
new arrangements with other leading
global brands.
Targeting Exports to High-
Growth Markets
Going forward, GB Auto will continue
to target exports in new high-growth
markets, including the Gulf Coop-
eration Council (GCC) and East African
markets the company has entered via
GB Polo. Management’s plans include
the exploration of new export vistas in
East Africa, North Africa and the GCC,
marking a significant new development
in the company’s drive to diversify both
revenues and earnings by product line
and geography. Serving clear demand
in export markets from Egypt will allow
GB Auto to mitigate new foreign terri-
tory risk while working simultaneously
to address risk in Iraq and Algeria, the
two most promising of the company’s
present expansion markets.
GB Auto is a uniquely diversified, lead-
ing player in key markets of the Middle
East and North African region’s automo-
tive segment. The company’s assembly,
manufacturing, sales and distribution, and
after-sales service operations spanmultiple
market segments, including passenger cars,
motorcycles, three-wheelers, commercial
vehicles, construction equipment, tires,
lubricants, pre-owned vehicles and retail, as
well as being complemented by corporate,
consumer andmicrofinance activities.
These activities occupy:
• 4 assembly and manufacturing plants
in Egypt.
• A growing sales network of inde-
pendent dealers and owned-retail
outlets in Egypt and Iraq.
• 9 passenger car and 6 commercial
vehicle after-sales service outlets in
Egypt and 4 in Iraq.
• 65 microfinance branches.
• Consumer finance done through a
network of independent dealer show-
rooms plus 25 owned-showrooms.
While Egypt remains our base and our
strength, GB Auto has an established
footprint in Iraq and Algeria, with opera-
tions on pause in Libya. Exports to the
GCC and East Africa have also begun,
and management is exploring other op-
portunities in that regard.
The company’s activities form a three-
axis strategy: expanding high-margin
operations, growing our portfolio of
products and targeting exports to high-
growth markets.
Expanding High-Margin
Operations
Following the approval of the EGP c.960
million capital increase, GB Auto is set
to expand its high-margin Motorcycles
& Three-Wheelers and Tires lines of
business through both the construction
of a new two- and three-wheelers plant
to allow full CKD assembly and through
deepening the company’s presence in
the tires industry by entering the tire
manufacturing business. GB Auto will
also remain focused on nurturing steady
growth in other lines of business.
Growing our Product Portfolio
With the recent launch of pre-owned
vehicles and lubricants — and final
preparations underway to launch the
retail division in 2015 —GB Auto is look-
ing to further expand its product reach
across all countries of operation with
Targeting Exports to
High-Growth Markets
Expanding High-Margin
Operations
Growing our Product Portfolio
Ghabbour Auto | 2014 ANNUAL REPORT
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