LT Foods embarks on ambitious journey to dominate Saudi Arabia’s rice market

LT Foods Limited, a global leader in the consumer food sector, has unveiled its strategic entry into Saudi Arabia with the inauguration of a new office in Riyadh. The move signals the company’s commitment to capitalising on the $2 billion Saudi rice and rice-based food market, a region renowned for its significant demand for premium and authentic rice products.

With a history of delivering exceptional value and quality to international consumers, LT Foods has already established itself as a trusted name in over 80 countries. Its latest expansion is backed by a strong global revenue of $1 billion annually, underpinned by an impressive compound annual growth rate (CAGR) of 18% in revenue and 21% in profits over nearly two decades.

Saudi expansion underpins LT Foods’ growth strategy

The company plans to invest SAR 185 million in the Kingdom of Saudi Arabia over the next five years, with these funds allocated to developing local warehouses, ensuring robust stock availability, and building a strong workforce. The investment aims to generate SAR 435 million in revenue, reflecting LT Foods’ ambitious vision for the market.

Moreover, the partnership with Saudi Agricultural and Livestock Investment Company (SALIC) as a strategic shareholder provides LT Foods with a robust platform to set up local manufacturing facilities. This strategic collaboration underscores the company’s dedication to aligning with Saudi Arabia’s local production goals while fostering a sustainable supply chain tailored to the Kingdom’s unique needs.

Leadership focused on delivering value and innovation

According to Vijay Arora, Chairman and Managing Director of LT Foods, the company has consistently established successful operations in global markets by offering high-quality products and creating economic value. Arora shared that LT Foods is excited to expand its footprint in Saudi Arabia, emphasising the significance of its flagship brands like DAAWAT, Hadeel, and Mufaddal, which have already gained traction among Saudi consumers.

Gursajan Arora, Chief Executive Officer for LT Foods’ Middle East business, highlighted the strategic importance of Saudi Arabia, noting the region’s position as one of the largest rice importers globally. He stated that the Riyadh office will act as a springboard for strengthening relationships with local stakeholders and tailoring products to meet Saudi Arabia’s culinary traditions.

Legacy of trust and premium offerings

LT Foods has been a leader in the global rice market for more than 70 years. The company’s iconic brands, including Royal®, a top-seller in North America, have cemented its reputation as a pioneer in delivering premium rice and rice-based products. This legacy is bolstered by its innovative “Farm to Fork” approach, which integrates high-quality farming practices, cutting-edge processing, and a reliable distribution network.

As consumer preferences evolve, LT Foods has also ventured into organic and innovative food offerings, appealing to the younger demographic and environmentally conscious buyers. This diversification ensures the company remains relevant in a competitive global food landscape.

Future outlook: A transformative role in Saudi Arabia’s rice market

LT Foods’ entry into Saudi Arabia is expected to drive significant growth, not just for the company but also for the Kingdom’s rice industry. The planned investment in local infrastructure and manufacturing aligns with Saudi Arabia’s goals of enhancing self-reliance in key food sectors.

With a robust distribution network, strong brand recognition, and strategic partnerships, LT Foods is poised to become a dominant force in Saudi Arabia’s rice market. Its focus on sustainability, innovation, and consumer-centric offerings will likely set new benchmarks in the industry.