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Arafa Holding restructure according to market segments Arafa ready made garments new management mulls ways to cut down costs and its subsidiaries will shifted according to market segments
Arafa Holding's BOD decided in their meeting that was held on January 3rd, 2011, to reorganise the company's subsidiaries according to market segments versus the former approach of operational segmentation, effective January, 1st, 2011, according to Beltone Financials. Arafa's three market segments will be as follows; luxury wear, formal wear, and casual wear, as opposed to the segments of retail, apparel and tailoring, and textiles, previously. According to Arafa, the newly adopted market segment reporting is intended to a) Respond to market, and enhance future group prospects; b)Become more investor and research analyst friendly; c)More efficient resource management; d)Establish better management accountability. In a similar note, while the Arafa's BOD also approved issuing the second round of share dividends (1:10), as per the company's general assembly's decision dated May 23rd, 2010, while the distribution date is still unknown. Arafa distributed, previously, a similar share dividend of 1:10on October 21st, 2010, in order to improve the share's poor liquidity. "Arafa is shifting its strategy, whereby it is focusing currently on increasing the contribution of the luxury business", commented Beltone Financials. The company started to cut costs in order to increase its liquidity through restructuring its European subsidiaries, to cut costs and improve the group's profitability. Arafa opened its new facility in Beni Suef in Upper Egypt, where its casual lines where shifted to exploiting lower costs in transportation and labor, according to Beltone Financials
