Ajinomoto to postpone launch of Egyptian unit

TOKYO, Feb. 25 Kyodo -
Japanese food product maker Ajinomoto Co. said Friday it will postpone the planned establishment by March 2012 of its subsidiary in Egypt due to popular uprisings in the country.
''We believe the confusion will not last for a long time,'' said President Masatoshi Ito. ''We want to set up the subsidiary by the end of March 2014 while assessing the situation.''
The Egyptian unit is designed to explore markets in Egypt and neighboring countries.
The company also announced its plan to boost its group operating profit by expanding business to emerging and developing markets under a three-year business plan starting April.
The company said it aims to see a group operating profit of 87 billion yen in fiscal 2013, compared with 69 billion yen projected for fiscal 2010 ending in March.
''While building up our foundation in the domestic market through value-added (products), we will expand our business by focusing on growing emerging and developing markets,'' Ito told a news conference.
Ito said the company will focus its research and development resources on seasonings and cutting-edge biotechnology such as medical technology to seek growth.
To strengthen its research and development, the company will set up bases in Asia, the United States and Europe in the next three years in addition to ones in China and Russia, Ito said.
The company plans to spend 180 billion yen on capital investment in the three years starting in fiscal 2011.
Under its medium-term business plan, the company said it aims to raise its ratio of overseas sales to 35 percent in fiscal 2013 from the current 31 percent and lift the ratio of overseas profit to 62 percent from the current 59 percent.
To achieve the goal, the company is seeking to expand its market share of mainstay products in existing markets, such as Southeast Asian countries and South America, and nurture new core products including low-priced powdered flavorings.
The company also plans to expand its overseas business by setting up new bases in countries like Bangladesh, Turkey and Egypt, Ito said. In India, the company plans to launch low-priced powdered seasonings and build a factory to make instant noodles, he said.
To seek further expansion, Ito said the company is willing to utilize alliance arrangements as well as mergers and acquisitions.
''We will not set a fixed framework for investment, but we may spend hundreds of billions of yen for matters that would promote the growth of the whole company,'' Ito said.