The Saudi Agricultural and Livestock Investment Company (SALIC), a wholly-owned subsidiary of the Public Investment Fund (PIF) has acquired a 9.2 percent stake in India-based basmati rice processing company, LT Foods Limited for $44 million (SR209 million).
The transaction is in line with SALIC’s directives to invest in targeted food commodities within the Kingdom’s food security strategy, as per the statement.
SALIC explained that expanding the scope of international investments is one of its strategic goals to achieve national food security targets. The relevant transactions are subject to regulatory approvals, according to the statement.
This transaction aims to build a solid long-term strategic partnership with LT Foods following SALIC’s successful acquisition of a 30 percent stake in Daawat, one of LT Foods major rice processing subsidiary in India, the Saudi company said.
“Our partnership with SALIC is strategic in nature and goes beyond financial investment. The tripling of investment in LT Foods by SALIC is an expression of their confidence in our ability to grow faster than the market. Together, we have developed a deep understanding of the needs of consumers in the Middle East related to food products and it will open doors for LT Foods to further strengthen its presence in this segment,” stated Mr. Vijay Kumar Arora, Chairman and Managing Director of LT Foods.
LT Foods
LT Foods Limited is a 70-year-old Consumer Food Company, listed on the National Stock Exchange of India since December 2006 delivering the finest quality rice and rice-based food brands in more than 60 countries. The Company recorded a consolidated revenue of around $715 million in 2021. Its flagship brands ‘Daawat’ and ‘Royal’ enjoy leading positions in India and USA respectively.
