March 6, 2021
Saudi Arabia’s Saudi Agriculture and Livestock Investment Company -Salic- is now going to will step up investments in the Indian agricultural ecosystem.
And according to Salic and United Farms Investment Company group chief executive Sulaiman AlRumaih they are keen to deepen engagement with the Indian food processing sector and evaluating new investment opportunities.
Salic is a wholly-owned by Public Investment Fund and already has a 29% minority stake in LT Foods subsidiary Daawat Foods. And now it will invest in agricultural projects and livestock production by partnering with governments across “multiple geographic areas. It sees that with agriculture contributing over 15% to India’s GDP, there is a significant potential for us to invest in and help develop the Indian food processing sector,” he said.
The Indian food processing sector ranked number five globally is growing at a CAGR of 12% and expected to reach the US $730 billion by FY24. It accounts for 32% of India’s food market and has an 11.6% share of employment in the domestic food industry. Low farm productivity, lack of mechanization, high perishability, and inadequate supply chains are some factors that impede food processing and exports.