UAE food giant Agthia sees KSA as a ‘priority market’
Abu Dhabi firm acquired bottled water firm in Jeddah in 2017, is looking for more opportunities
UAE food giant Agthia Group is determined to expand further into Saudi Arabia as part of its wider five-year plan to seek out acquisitions and opportunities in the Middle East, North Africa and Pakistan (MENAP).
“Saudi Arabia is very much an aspirational target; we will continue to focus and look for opportunities,” Alan Smith, CEO of Agthia Group, told Arab News in an online webinar on Monday when asked about the company’s plans in the Kingdom.
“As an F&B (food and beverage) company, we look to expand in the market in the region and become a leader, and Saudi Arabia is a priority market,” he said. Agthia Group is currently working in the water business in Jeddah, having acquired the Delta Bottled Water Co. in March 2017, and is aiming to expand its business in this sector. “We look to see how we can further build on it and have a sustainable business,” said Smith.
Delta Bottled Water currently produces, markets and distributes Al Ain Water, Delta Water 5 Gallon bottles and Bambini Baby Water. Agthia also manufactures and distributes products for popular regional brands such as Al Foah (dates), Al Faysal Bakery and Sweets (bakery) and Grand Mills. Smith said: “Our strategy stems from an in-depth assessment of the business and a clear vision of where we want to go. The effective integration of new businesses and the decisions we make in the near term will benefit us in the long term. We will follow a disciplined expansion plan focused on the acquisition, integration and scaling of new businesses.”
The company is aiming for savings of AED200 million ($54.46 million) by streamlining its businesses. “Our key focus for the next five years includes digitizing performance management systems and implementing change initiatives across the board with a continued emphasis on sustainability and innovation,” Smith said.