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The textile industry is one of Egypt’s oldest industries, and the textile and clothing industry is the second largest industrial sector in Egypt. In addition, this industry represents one of the great opportunities to open global markets to Egyptian products, and although the industry has not yet achieved the size that befits the industry’s antiquity, it is on the right track. For example, Egypt’s exports in the textile sector rose to about $833 million during the first 9 months of 2024. The sector’s exports grew by 5% in 2023, reaching USD 1.124 bn.
Engineer Mahmoud Ghazal, Founder and Chairman of MGS Industry, is one of the leading Egyptian producers in the textile industries. Through the companies he manages and owns, he was able to delivers many Egyptian distinguished products to the international markets with the slogan “Made in Egypt” on the products of major clothing brands, in addition to the high-quality production of textile. We met with Engineer Mahmoud Ghazal to learn about his journey in the world of textile industry and his vision of its future and Egypt’s opportunities and chances to compete in foreign markets.
Let’s Start by Learning About Your Very Beginnings in the World of Management, Which Came Through the Giza Company That the Father Owned
My career began way early. While studying at the Faculty of Engineering, I worked in the local distribution of products for “Giza Textile” factories. In 1999, I took over the management of “Nok Nok” stores, which achieved great success and spread until it reached 13 branches in 2010. In fact, I learned from my father that good management must be based on a clear system that is accessible to all, and that a relationship between the manager and the staff is based on three elements: Respect, love, and reverence.
By applying these standards as well as the policy of “open door” which means constant dialog with employees on any issue or mistake, because the goal is to address issues rather than punishment, the “Nok Nok” exhibitions’ experience was very successful because we have all been working with the same goal: the success of the business, expanding and increasing the number of exhibitions. This experience has given me a lot to learn in management processes especially managing a different group of people.
What Is the Vision Behind the Foundation of “Nile Textile Industries” and How Did It Later Turn Into MGS?
The family has been involved in the textile business for a long time, owning a company “Giza for textile”, and in fact I was thinking about expanding the scope of work, delivering high quality products with a view to exporting to foreign markets, expansion processes were not possible within the framework of the “Giza” company. In 2005, I founded “Nile for Textile Industries” and chaired its board of directors, and the main goal of the company was to specialize in the field of textile in all stages of production from converting yarn into high-quality final products ready for export in the world markets. In fact, the process of exporting the finished product yields the best return for the Egyptian industry and increases foreign exchange resources, and contributes to reducing local unemployment.
After years of success and expansion in production, I established MGS Industry Group in 2024 to serve as the holding company and act as the group’s industrial lead, where Nile was joined under its umbrella.
How Did Your Family History in The Textile Industry Affect Your Career and Your Business?
The family started working in this field from the time of my grandfather, who was the chairman of Misr Al Mahalla Company after the nationalization, he was so experienced in the field that he named my father “Muhammad Ghazal” in connection with this industry. At the same time, my father founded the first factory after returning from the United States to which he traveled to save capital to start his own business. He then founded the “Giza” company, which became one of the largest clothing export companies in Egypt. The reputation I got from my father and my grandfather in this industry, is the one from which I started at the very beginning. But of course, I went through my own experience in expanding and diversifying products and business.
Today, the factory covers an area of 80,000 square meters, with a production building on an area of 40,000 square meters, and storage areas of up to 10,000 square meters, and the factory offers the highest quality textile dyeing in Egypt and is OEKO-TEX® STANDARD certified. In addition to a number of other quality certificates.
How Do You Maintain the Family’s Legacy in the Industry While the Process of Permanent Development and Expansion of MGS Takes Place?
The equation in this matter is very simple, the family legacy is based in the industry on three main elements: high quality in products, endless commitment with customers, and a reasonable and competitive price, which do not change under any circumstances and continue with us always maintaining the family’s legacy. At the same time, the company continues to expand and use the latest methods and equipment in manufacturing various textile products that meet the highest international quality standards, while using the latest environmentally friendly technologies, to provide products that meet the needs of customers in international markets, contribute to maximizing the added value of the Egyptian product, and enhance global competition.
Since Its Inception, “Nile Textile Industries” Has Been Seeking to Export Its Products. What Challenges Did You Face to Succeed in Exporting to Foreign Markets?
The primary challenge faced by Nile is the same challenge faced by Egyptian industries in general, which is how to manufacturing the highest possible quality, while keeping costs to a minimum, so that we can provide high-quality products at reasonable prices that can compete in the global market. The truth is that Egypt needs to expand the export of scope of exporting, as is happening in the textile industry, because the importance of the final product is reflected in the added value, which translates in the business sector into additional profits, increased labor, and the provision of hard currency. The general interest of the state is based on expanding the export of products, which positively affects the country’s economy in general.
This is the biggest challenge, which we succeeded in overcoming by providing high-quality products at affordable prices, which was directly reflected in our production, as production rates increased in 2024 to more than half a million pieces, and the group produced 500,000 pieces of ready-to-wear clothes and 55,000 pieces of textile during the same year.
Another challenge we faced in the beginning was how to expand the customer base. In this context, we were working on participating in international exhibitions to showcase our products to international customers, and by obtaining the initial agreements, the circle then expanded naturally, as others recognize the quality of what we offer and thus seek to acquire these products, this happened first in the textile sector, and later in the clothing sector.
How Did You Expand MGS Group into International Markets?
We relied on the same methods that proved effectiveness with the Nile Textile Industries, and the beginning is participating in international exhibitions, displaying our distinctive products, and thus building relationships with customers, and from this point the circle expands. With the emergence of high-quality products, other customers start looking for us and making agreements, but the only difference is that MGS operates with greater expansion in mind as the industrial lead of the group. The customer base of Nile Textile Industries moved to MGS naturally, and with the acquisition of new customers, this base became much larger than before with the diversity of brands that deal with us.
In this context, it can be said that the country’s support for the export process can contribute to increasing export rates, especially in light of the fierce international competition in the trade sector. For example, a country such as India or Pakistan can export a kilo of towels for 5 dollars, while the price of a kilo of Egyptian towel reaches 7 dollars. This major difference comes as a result of the costs of the industry basically and the extent to which the factory receives governmental support. This reflects on the price of the final product, and it is one of the challenges we face in exporting. Despite this, the Egyptian product is distinguished and favored by some, even if the price is high.
The World of Textile Industries Is Rapidly Evolving, How Does the MGS Group Adapt to These Developments?
MGS Group has a special advantage among textile manufacturers operating in Egypt, namely the diversity of production. Egyptian companies specialize in the quality of production where we find textiles whether the production of pads or sheets “Bedding”, we also find specialists in the production of clothing. However, MGS and before it Nile Textile Industries were producing the three main products at the same time, so we are the only company in Egypt that owns this diversity, which makes it easy for us to meet all customer needs.
To achieve this high level of diversified production, the Group uses the latest machinery and textile industry technology, in addition to having a team of professionals in the field. We do not stop following all the new industry trends and applying them within our factories to continue providing the highest quality products.
The World Is Very Interested in Applying Sustainability Guidelines in Industrial Processes. Is the Company Complying with These Standards?
MGS places sustainability at the center of its business strategy. For example, the group is particularly interested in afforestation, so they to increase the green spaces in the factory, relying on the efficient usage of energy-saving lamps. The group also works to increase reliance on clean energy sources in its industrial operations. We have a water treatment plant for the reuse of water. The group invests in new industrial technology that works to use energy and resources efficiently to reduce the probability of waste. In addition, we pay attention to women’s empowerment and employment. So, for example, 70-75% of the group’s employees are women.
It is a fact that paying attention to these standards reflects positively on the success of the business. In addition to providing an environmentally friendly environment, saving energy consumption and other elements, these guidelines are one of the prerequisites for many foreign customers, and therefore strict adherence to them is also an element that helps to seamlessly enter new markets globally and acquire new customers.
As an Expert in the Field, How Do You See the Future of Exporting Egyptian Textile Products in the Upcoming Years?
Textile industries are one of the largest basic industries in the world, as they are linked to the daily needs of humans, and the demand for them is increasing. They are also one of the industries that contribute quickly to supporting the national economy, if we look, for example, at the clothing industry, we find that it does not need huge investments, but at the same time it achieves great profits.
On the international level, US President Donald Trump is expected to take many economic decisions directed against China and its goods circulating in the United States once he takes office, and Europe is expected to move in the same direction. For this reason, expectations indicate that Egypt has many opportunities available in this field to cover the consumption needs in the American and European market, which will witness a deficit in the event of limiting Chinese goods. This means that the need to increase local production capacities, increase exports abroad, and acquire a new customer base that will continue even if US policies change again after Trump. In this particular industry, Egypt has a good opportunity to expand the scope of exports and gain new area and develop it over the past few years with the quality of Egyptian products in this field.
Do You Have an Advice for Young Entrepreneurs in This Industry?
I am always keen om communicating with young people who want to enter the world of business and industry and start small projects, whether through general steps through my LinkedIn page or through direct communication. My first advice is not to be afraid of the experience, and to have it with everything in it, because experience is based on learning, trials and errors. And I personally do not stop giving advice to those who request it from young people, especially those looking to enter various industrial projects. The main point is of course to study feasibility of the market, then comes the implementation of the project itself with machines and labor. Of course, there is a percentage of risk in any startup project. But the advice is that risk is part of industrial and commercial journey and that risk should not be an obstacle to young people’s entry into the market.
