Saudi Arabia’s Public Investment Fund (PIF) revealed making a new expansion in its agricultural activity. This is through the acquisition of a significant stake in a giant Indian company.
The PIF earlier announced waiting for investment opportunities. It also noted that they will be in the fields of aviation, oil, gas, and entertainment.
It revealed on its Twitter account on Monday that the Saudi Agricultural and Livestock Investment Company (SALIC) acquired a 29.91 percent stake in Daawat Foods Ltd. (DFL) from India Agri Business Fund.
The investment comes in line with SALIC’s strategy in investing in rice, intending to strengthen and make the rice supply chain more efficient and robust.
DFL is one of the manufacturing and sourcing arms of LT Foods. It houses one of the five manufacturing facilities owned by LT Group in India and currently contributes to around 22 percent of the total production of the Group.
LT Foods Ltd.; is an 80-year-old Consumer Food Company delivering the finest quality rice and rice-based food brands in more than 80 countries.
The Company has consolidated revenue of around $550 million as of fiscal year 2019.
Its flagship brands ‘Daawat’ and ‘Royal’ enjoy leading positions in India; and the US with a market share of 29 percent and 45 percent respectively. They also have a strong market share in other countries as well.
It is noteworthy that SALIC established by a royal decree as a Saudi Arabian Joint Stock Company; on April 14, 2009 wholly owned by the PIF.
Its activities are in the field of agricultural investment and livestock production. This is in the countries that have a comparative advantage to contribute to achieving food security. Besides, providing food products, and stabilizing food prices in the Kingdom.