Arabian Mills gains market share, offers new products: CEO

Rohit Chugh CEO of Arabian Mills Co.

Arabian Mills Co. has gained a larger market share, launched new products, and expanded its presence across Saudi Arabia, CEO Rohit Chugh said.

On June 24, 2024, Arabian Mills, formerly known as Second Milling Company (MC2), received greenlight from the Capital Market Authority (CMA) to list its shares and offer 15.39 million shares to the public on the Main Market, representing 30% of the company's total 51.3 million shares.

Chugh discussed the company’s planned listing, the strategic motivation for the company's recent rebranding, production expansion, and future plans.

Here’s the full interview with Chugh:

Q: Why does Arabian Mills consider going public in the market?

A: The decision to offer and list 30% of the company's shares was made by the shareholders, as the company has become ready for the next chapter of its growth journey to seize the best opportunities in the flour and animal feed market in Saudi Arabia.

Since the company's privatization in 2021, we have managed to garner a larger market share, launch new offerings, and expand our presence across the Kingdom. Meanwhile, we remain committed to contributing to the Kingdom’s food security and stability.

Q: When is the expected initial public offering (IPO)?

A: We have up to six months from the date of obtaining the market regulator’s approval to launch the offering.

Q: Why did the company rebrand from MC2 to Arabian Mills?

A: The rebranding is an important step that reflects our commitment to fulfilling the changing needs of our customers. The new name "Arabian Mills" not only honors our rich history but also aligns with our ambition to innovate and expand our business in order to meet growing market needs. We believe this is the right time to adopt a new brand that better embodies our role and vision for the food sector in the Kingdom.

We have always been and are still firmly committed to the Kingdom's food security. Under the new brand, we seek to double our effort to improve the company’s operations, enhance customer experience, and continue meeting the highest standards of quality and safety.

The rebranding aims to affirm our role as one of the key contributors to food security initiatives in the Kingdom. We are excited to leverage our expanded capabilities to support sustainable economic growth and prosperity.

Q: What about the company’s new offerings? Are there any additional needs you aim to fulfil?

A: With over 40 years of extensive experience since the commencement of Riyadh plant's operations, Arabian Mills has successfully become a reliable partner for an increasing number of customers in the Kingdom, gaining high credibility in terms of product as well as service quality.

We have decided to expand our product offering to keep up with current and new consumer aspirations. This includes producing ready-made flour mixes and gluten-free products under our new brand "Finah”. Through these offerings, we not only seek to diversify our business but also to provide healthier food options reflecting the changing lifestyle patterns we are currently witnessing in the market.

Q: Could you please explain the operational enhancements introduced by Arabian Mills to raise production efficiency?

A: The company has the highest flour production capacity in the Kingdom, with strategic locations in Riyadh, Hail, and Jazan, close to livestock breeding and tourism centers that serve other major regions.

The enhancements we are introducing include integrating more technological capabilities and advanced machinery to raise operational efficiency and maintain the quality of our industry-leading products. Furthermore, these enhancements align with international standards to ensure that we continue to produce top-quality essential wheat products and animal feed.

Q: The company launched two new brands for its products “FINAH” and “Kamil”. How are these brands distinguished from other products in market?

A: The launch of the “FINAH” and “Kamil” brands is a strategic step to create distinct identities within our product portfolio, as FINAH will be our main brand for a wide range of flour offerings, including specialty mixes, products fortified with vitamins, gluten-free options, and other value-added products such as pasta to meet the changing and diverse cooking needs and trends. On the other hand, Kamil focuses on the animal feed sector, while providing customized feeding options for different types of livestock. The two brands allow us to add a unique value to our products and target specific customer categories more effectively.

Q: Regarding your future plans, what are the main goals of Arabian Mills for the next decade?

A: Over the next decade, Arabian Mills will focus on continuing to adopt an innovative and pioneering approach to its activities in the milling field. We also aim to strengthen our position in the market by continuing to invest in our capabilities and expanding our reach throughout the Kingdom and beyond.

We will also continue to focus on enhancing customer satisfaction and contributing to the economic well-being of the communities we serve. We are also committed to playing a pivotal role in achieving the goals of the Kingdom’s Vision 2030 for economic diversification and sustainable development.