LT Foods has forayed into Saudi Arabia with a new office in Riyadh, in an effort to tap into the $2 billion rice and rice-based food market in Saudi Arabia, the company said.
The rice exporter will invest SAR 185 million ($49.3 million) over the next five years in Saudi Arabia, and targets revenue worth SAR 435 million ($116 million) in the next five years.
Saudi Agricultural and Livestock Investment Company (SALIC) has been onboarded as a strategic shareholder, and LT Foods said it is also preparing to set up local manufacturing facilities in the Kingdom.
LT Foods has in the past stated ambitions to expand to newer geographies, and generates $1 billion in global revenue.
"We are now very excited to expand our footprint in Saudi Arabia. Our trusted brands, Daawat, Hadeel and Mufaddal, have long been a part of the Kingdom of Saudi Arabia (KSA). With SALIC being a strategic shareholder in LT Foods, we are now expanding our footprint in the KSA with warehouses and are prepared to establish local manufacturing," Vijay Arora, Chairman & Managing Director, LT Foods said.
Saudi Arabia is one of the largest importers of rice, and LT Foods considers it as a key market with 'tremendous potential' for growth. "With our Riyadh office, we aim to deepen our connections with local consumers and partners, tailoring our offerings to meet their specific preferences," Gursajan Arora, CEO - Middle East Business, LT Foods said.
The company said it is improving its market share in Dubai's premium segment, which has gone to 9.8% from 6.2% as per Nielsen. The market share in Kuwait, Qatar, Muscat and Iraq too are improving, the company said in October.
LT Foods has a market capitalisation of Rs 12,300 crore, and the shares are higher by 75% on YTD basis. The company had a consolidated revenue of around Rs 7,822 crore as of FY24.
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