RIYADH: A premier Saudi company has signed a management agreement and announced plans to raise its capital to SR2 billion in an effort to contribute to the national strategy of Custodian of the Two Holy Mosques King Abdullah which seeks sustainable food reserves.
Ajwa Group for Food Industries Holding Company Ltd., signed the agreement Tuesday which authorizes Thara Al-Madin for Industry Ltd. to restructure and upgrade Ajwa Group, that will help to position Ajwa as a major regional and global player in the food market.
Fawaz Al-Alamy, the newly-appointed chairman of Ajwa's board of directors, gave the information yesterday. Al-Alamy, CEO of the Ajwa Group, said that the agreement had been signed by Prince Mansour bin Muqrin, chairman of Thara Al-Madin, and Sheikh Mohamad bin Issa Al-Jaber, chairman of MBI International, which owns Ajwa. Extending from the largest rice processing facility in Jeddah to a large edible oils facility in Dammam, Ajwa has a proud business record in the region.
Spelling out the salient features of the accord, Al-Alamy said, "This agreement will help Ajwa Group to achieve its business objectives that include establishing the largest strategic food reserves in the region, developing strategic alliances with renowned agri-business multinationals, and introducing new high-quality food brands." He pointed out, "Ajwa Group intends to raise its paid up capital to SR2 billion within the next three years in preparation for a potential major public offering by early 2012."
"With its massive food and agri-business operations, Ajwa Group currently owns and operates the largest and most advanced high-quality rice processing facilities, with an annual storage capacity of 120,000 tons, and the largest privately-owned grain silos in the region with a massive annual capacity of 450,000 tons," said Al-Alamy. Ajwa Group is also planning to establish the largest feed mill industrial plant in the region with an annual production capacity of two million tons.
On the eastern coast of Saudi Arabia, Ajwa Group's industrial plant, which produces the famous "Nabati" brand of edible oil is expected to triple its production capacity by 2010. These objectives and policies, he said, have been formulated in line with the directives issued by King Abdullah, who has called to map out a comprehensive "national food security strategy in order to safeguard consumers against the rising global food prices, shortage of food materials, future price inflation and severe price fluctuation."
In fact, the announcement of the appointment of a commercial expert, Al-Alamy, as Ajwa's chairman and CEO during the signing ceremony, was part of the company's objective to reach those goals.
Ajwa Group was established in Jeddah in early 1993 as a limited liability company.
Today, it is the leading producer and distributor of high quality food commodities and agri-business products. Ajwa's activity includes processing, distribution and marketing of food products including vegetable oils, pasta, dates, cereals and meat products. It has more than 5,000 employees on its pay roll.
By M. Ghazanfar Ali Khan
© Arab News 2009
