RIYADH: Saudi Arabian food and beverages manufacturing firm Almarai Co. is expanding its poultry business in an attempt to double its market share in the Kingdom, according to its CEO.
Almarai’s strategy has always been to expand its current businesses to new segments, Al Arabiya reported, citing Abdullah Nasser Al Bader, who added that the poultry segment was one of those crucial investments the firm made over the past 13 years.
The CEO further noted that Almarai’s poultry business has been a profitable venture despite facing challenges in the industry which include bird deaths.
One of the biggest dairy companies in Saudi Arabia, Almarai ventured into the poultry market in 2009, following the acquisition of Hail Agricultural Development Co.
Affirming the company’s strong financial solvency, Al Bader added that Almarai’s investments are linked to sustainability and continuity.
On Nov. 26, Almarai announced investing SR.5 billion ($1.2 billion) in Al-Shamli Governorate, Hail Region, to expand poultry production.
This is part of Almarai’s strategy to maximize the full potential of its core business lines across the Gulf Cooperation Council region.
The company’s new investments include the establishment of a new plant and farms in Hail, aimed at elevating poultry production by above 150 million birds annually, the Argaam report stated.
Almarai currently produces 225 million birds annually, and through these investments, the company wants to become a leader in poultry production in the region.
Al Bader further noted that these investments will also provide job opportunities for 4,000 people, and will also contribute to the development of local content.
Earlier in June, the company, in a bourse filing, said that it is looking to inject SR252 million as an initial investment to mark its entry into the seafood category.
“This investment plan will expand Almarai’s product offering and contribute to the food security agenda as per vision 2030,” the company said.
In January, Almarai completed the acquisition of Bakemart’s operations in the UAE and Bahrain in a deal worth SR95.4 million, as part of the strategy to expand its presence across the region.
Almarai currently offers a vast product mix, encompassing dairy, juices, poultry, bakery, and infant nutrition, according to its website.