Saudi Arabia’s SALIC (Saudi Agricultural and Livestock Investment Company), which has a 29 per cent minority stake in LT Foods subsidiary Daawat Foods, will increase investment in the Indian agricultural ecosystem, said SALIC and United Farms Investment Company group Chief Executive Officer (CEO ) Sulaiman AlRumaih during this week’s visit to India.
We are eager to broaden our engagement with the Indian food processing industry; we are assessing new opportunities for investment, he told.
SALIC is a fully owned by the Public Investment Fund, will invest in agricultural and livestock production projects by collaborating with government bodies across “multiple geographic areas” the corporation stated.
‘With agriculture sector contributing more than 15percent to India’s GDP, there is a great potential for us to make investments in and help to develop the Indian food processing industry,’ he added.
Global rank and growth hindrance
The Indian food processing industry ranked 5th worldwide is growing at a Compound annual growth rate (CAGR) of 12% and is projected to reach US $730 billion by FY24. It represents 32% of India’s food market share and has an 11.6% employment share in the domestic food industry.
Lower agricultural productivity, shortage of mechanisation, high highly perishable and inadequate distribution networks are factors that hinder food processing and exports.
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