Sarveshwar Foods accelerates global expansion with major Middle East acquisition

Sarveshwar Foods Limited, a prominent name in the global rice industry, has made significant strides toward acquiring the remaining stake in Natural Global Foods DMCC, based in Dubai, UAE. The acquisition process is expected to conclude by December 31, 2024, marking the integration of the Dubai-based entity as a wholly owned subsidiary. This milestone highlights Sarveshwar Foods’ commitment to strengthening its operational foothold through a major Middle East acquisition, a region identified as a key growth market for the premium rice market.

With the final due diligence and valuation reports received and the Board of Directors’ approval in place, Sarveshwar Foods is poised to achieve full operational integration before the end of the fiscal quarter. This acquisition is more than just a corporate consolidation; it is a strategic move aimed at streamlining decision-making, creating synergies, and boosting efficiency across the region. The initiative aligns with the company’s broader vision of global expansion and reinforces its leadership in the competitive market of rice-based products.

The Middle East, a vital hub for the global rice industry, offers immense opportunities for growth. Sarveshwar Foods sees this Middle East acquisition as a gateway to enhancing its market presence and meeting the rising demand for premium-quality rice. The Middle Eastern market, known for its preference for high-quality, authentic food products, aligns well with Sarveshwar Foods’ legacy of producing nutritious and flavourful rice for the premium rice market.

Chairman Rohit Gupta expressed optimism about the development, indicating that integrating Natural Global Foods DMCC would significantly bolster the company’s ability to cater to the increasing demand for rice-based products in the region. Gupta highlighted that this strategic acquisition would not only accelerate growth but also facilitate stronger connections with local consumers and partners, enabling the company to tailor its offerings to meet regional preferences effectively.

The global market for rice-based products, valued at approximately USD 32 billion in 2022, is on a growth trajectory with a projected compound annual growth rate (CAGR) of 5.3% between 2023 and 2030. The market expansion is fuelled by increasing consumer demand for gluten-free and organic food options. Additionally, the versatility of rice across cuisines, coupled with its health benefits such as low allergenic potential, positions it as a cornerstone of dietary preferences worldwide.

Sarveshwar Foods’ strategy aligns with these trends. By leveraging its expertise and certifications in organic and premium food production, the company is set to meet the evolving needs of health-conscious consumers. The Middle East acquisition further allows Sarveshwar Foods to establish a robust supply chain and improve responsiveness to dynamic market demands in the region, solidifying its position in the premium rice market.

The company’s broader vision encompasses diversifying its offerings beyond food, exploring the use of rice derivatives in pharmaceuticals and cosmetics. This diversification is part of a long-term strategy to maximise the potential of rice as a sustainable and versatile ingredient.

As the first private-sector food company from Jammu and Kashmir listed on both the National Stock Exchange and Bombay Stock Exchange, Sarveshwar Foods has consistently demonstrated its commitment to growth and innovation. The integration of Natural Global Foods DMCC is a critical step in this journey, solidifying its ambitions within the global rice industry while staying true to its heritage of quality and trust.