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LT Foods Opens New Riyadh Office, Targets $2 Billion Market

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Synopsis:

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 news today

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 LIMITED

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Updated - 26 November 2024
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Key Takeaways:

  • 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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Strategic Growth and Market Entry 

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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Investment and Revenue Projections 

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

Leveraging Strategic Partnerships 

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.

A Milestone for LT Foods 

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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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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