INTERVIEW-Egypt's Raya uses tech skills to diversify

* Egypt's Raya expanding into transport, recycling

* Chairman sees 50 pct of profits from non-core in 5 years

By Alastair Sharp

CAIRO, March 10 (Reuters) - Egypt's Raya Technology and Communication (RAYA.CA: Quote) aims to diversify into logistics to tap demand in a relatively virgin market as it shifts away from its main technology businesses, the firm's chairman said.

Raya, which sells mobile handsets, runs call centres and provides outsourced IT services, intends to use its experience in technology to drive its expansion beyond these core activities.

"Our target is that in five years time we will get 50 percent of our profit from non-classical, non-core activities, from new activities," Khalil told Reuters in an interview on Wednesday.

Khalil said Raya will consider any project offering at least a 20 percent return on individual investments of no more than 100 million Egyptian pounds ($18 million) that fill a niche and utilise the firm's strengths in technology.

Raya will next month establish a heavy trucking company using tracking systems and automation in a joint venture with private equity firm Citadel Capital (CCAP.CA: Quote), Khalil said.