Lecico Strategic Audit
Introduction & Company Overview
LECICO has come a long way since its modest beginnings as a small Lebanese factory in the late 1950s. Over the past 48 years, the Company has grown into one of the largest sanitary ware manufacturers in the world.
Lecico is one of the largest sanitary ware producers in the world and a significant tile producer in Lebanon and Egypt. Our factories in Alexandria, Egypt, Kfarchima, Lebanon and Vitry-le-François, France employ over 4,800 people and have the capacity to produce more than 6 million pieces of sanitary ware and 22 million sqm of tiles per year.
Lecico manufactures a range of internationally-certified sanitary ware products sold both under the Lecico brand and for other manufacturers and customers under their own brands in over 50 countries. Lecico also produces a wide range of ceramic wall and floor tiles that are sold principally in Egypt and Lebanon.
Over 61% of Lecico’s sanitary ware production is sold internationally through our trading subsidiaries in the United Kingdom (Lecico plc) and France (Lecico France) and a strong network of prominent distributors, agents and specialized merchants across Europe, the Middle East and Africa. Lecico is one of the largest sanitary ware brands in the United Kingdom and Ireland.
Company Strategy
Lecico’s strategy is to leverage its large production base in Egypt to build a significant presence across the Middle East and Europe by providing innovative, modern design and world class quality ware at competitive prices.
Expand regional and International Exports.
Lecico’s strategy is to continue developing its presence and foot print in regional and European export markets under its own brands and as an OEM producer for leading global manufacturers. In 2008, we are seeing a strong increase in enquiries from existing and new customers across all categories.
Lecico’s exports to Europe account for over 80% of exports and over 35% of the company’s sales. The Lecico brand has a 10% market share in the UK, France and Ireland combined. Lecico plans to increase its market share in Europe by targeting new markets and OEM customers while also widening its offering in existing markets. Lecico will also continue to selectively explore any opportunities to make value-enhancing acquisitions.
As a result of Lecico’s focus on growing its presence in regional markets, the company’s sanitary ware and tile exports to the Middle East have grown 50% annually over the last five years. Lecico sees strong opportunities for continued growth in regional markets, particularly in those countries with large populations and underdeveloped or rapidly-growing economies. Lecico has established small trading