The company recently opened an office in Riyadh to capture opportunities in Saudi Arabia’s rice and rice-based foods market, with plans to invest USD49.3m into building local manufacturing capabilities.
This move is part of the company’s global expansion endeavours and comes after the inauguration of a new manufacturing plant in the UK in July 2024.
Through setting up an office in Saudi Arabia, LT Foods aims to tap into opportunities within the local rice and rice-based foods market, which it says is worth USD2bn.
It will act as a hub for the company’s regional operations, leveraging its know-how in the rice category to meet the increasing demand among Saudi consumers for authentic and premium products that suit their tastes and culinary traditions.
“The Saudi market presents immense opportunities for us, driven by a growing demand for rice and rice-based food products, and an increasing focus on quality and authenticity.
“Additionally, its evolving culinary landscape, influenced by a blend of traditional and global cuisines, aligns perfectly with our diverse product offerings. With more women going to work, there is a need for convenience foods, and this is where our ready-to-eat (RTE) and ready-to-cook (RTC) products will have a good consumer base,” Vijay Arora, Chairman and Managing Director of LT Foods, told FoodNavigator-Asia.
The brands that the company is bringing into Saudi Arabia include its flagship brand, DAAWAT, said to be one of the “most loved and consumed” basmati rice in India, as well as Hadeel and Mufaddal.
With Saudi Agricultural and Livestock Investment Company (SALIC) as a strategic shareholder, LT Foods is also gearing up to establish local manufacturing capabilities.
In addition, it plans to invest SAR185m (USD49.3m) in warehousing, stocks, and people in Saudi while eyeing a revenue of SAR435m (USD115.9m) over the next five years.
When completed, the facility is expected to produce DAAWAT’s “superfood portfolio”, including Quick Cooking Red Rice, Quick Cooking Black Rice, Quick Cooking Brown Rice, and Cuppa Rice.
Other products that will be locally manufactured in Saudi are DAAWAT’s RTE Biryani Kits, which enable consumers to make authentic-tasting biryani at home in under 30 minutes, and the recently launched DAAWAT Jasmine Thai Rice.
“We have built successful businesses in every market where we set up operations, providing quality products and premium food offerings to consumers, and adding significant value to the economy.
“Saudi Arabian consumers value consistent product quality and premium experiences in their food choices. Over the past 70 years, LT Foods has established a reputation that resonates with consumers globally and our products are trusted in more than 80 countries. We are committed to bringing the same experience to rice lovers in Saudi Arabia.”
Filling a ‘significant gap’ in Middle East
Having been in the specialty rice and rice-based foods business since 1950, LT Foods today generates US$1bn in global revenue, demonstrating a revenue CAGR of 18% and profit CAGR of 21%.
In the Middle East, the company has established a robust presence in markets such as the UAE, Iraq, Oman, Yemen, Qatar, Libya, and Kuwait.
“With our extensive distribution network and a portfolio that caters to the diverse needs and preferences of consumers in the region, LT Foods ensures that our products are accessible almost everywhere in the region. Our dedication to quality and consistency has made us a trusted name among consumers and culinary professionals alike.
“Most importantly, there is currently no fully integrated player for basmati rice in the region. This creates a significant gap that we are uniquely positioned to fill with our expertise and end-to-end control over the value chain,” said Arora.
