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LT Foods inaugurates a new office in Riyadh to capture part of the $2 billion rice market in Saudi Arabia, aligning with its global expansion strategy.
LT Foods has officially announced its expansion into the Saudi Arabian market with the opening of a new office in Riyadh. This strategic move is aimed at tapping into the Kingdom's burgeoning $2 billion rice and rice-based food market. The inauguration marks a significant step in the company's ongoing efforts to extend its global reach and enhance its presence in new geographies.
LT Foods targets Saudi Arabia’s $2 billion rice market.
Plans to invest SAR 185 million in local operations over five years.
Aims for SAR 435 million in revenue from Saudi operations by 2028.
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With the establishment of its Riyadh office, LT Foods is set to revolutionise the rice market in Saudi Arabia. This new office will serve as the regional hub for the company's operations, facilitating the distribution of authentic and premium rice products that cater to the tastes and culinary traditions of Saudi consumers.
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LT Foods has committed to a substantial investment in the Kingdom, outlining plans to inject SAR 185 million into warehousing, stocks, and human resources over the next five years. This investment is expected to propel the company towards achieving a projected revenue of SAR 435 million within the same timeframe. The table below provides an overview of LT Foods' investment and revenue goals in Saudi Arabia:
Year | Investment (SAR Million) | Projected Revenue (SAR Million) |
2024 | 37 | 87 |
2025 | 37 | 87 |
2026 | 37 | 87 |
2027 | 37 | 87 |
2028 | 37 | 87 |
With the Saudi Agricultural and Livestock Investment Company (SALIC) as a strategic shareholder, LT Foods is also preparing to establish local manufacturing facilities within Saudi Arabia. This partnership underscores the strategic nature of LT Foods’ expansion efforts and its commitment to integrating deeply into the local market.
The opening of the new office in Riyadh is more than just a physical expansion—it is a strategic move that positions LT Foods to significantly impact the rice market in Saudi Arabia. This development is likely to enhance the LT Foods share price, reflecting the company’s robust growth trajectory and its potential for increased profitability in a new and dynamic market. This initiative not only aligns with LT Foods’ global expansion objectives but also highlights its commitment to adapting its offerings to meet regional demands and preferences.
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