SALIC buys 29.9% stake in India’s Daawat Foods

SALIC, which is fully owned by the Public Investment Fund (PIF), acquired a 29.91% stake in Daawat Foods Ltd. (DFL) from India Agri Business Fund, in line with its strategy in investing in rice, a key commodity for SALIC, with the aim 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% of the total production of the Group, SALIC said in a statement.

It caters largely to the demand from overseas markets and witnessed a revenue growth of over 20% over a 5 years period.

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 USD 550M as on FY19. Its flagship brands ‘Daawat’ and ‘Royal’ enjoy leading positions in India and US respectively with a market share of 29% and 45% respectively and have strong market share in other countries as well.

SALIC was established as a Saudi Arabian Joint Stock Company on April 14, 2009. It invests in agricultural field and livestock production in the countries that have comparative advantage in order to contribute to achieving food security, provision of food products, and stabilizing food prices in the Kingdom.

SALIC aims cover over 50% of imports across all categories of goods that have been identified as strategic goods compatible with the Kingdom’s food security strategy.