Sarveshwar Foods was gaining the spotlight on Monday. On December 2, 2024, Sarveshwar Foods share price opened at ₹10.22, up from its previous close of ₹9.78. At 11:17 AM, the share price of Sarveshwar Foods was trading at ₹10.20, up by 4.29%.
On November 29, 2024, Sarveshwar Foods Ltd announced the successful completion of its acquisition of the remaining stake in Natural Global Foods DMCC, based in Dubai, UAE.
Following the receipt of final valuation and due diligence reports, along with approval from the Board of Directors, Sarveshwar Foods aims to integrate Natural Global Foods DMCC as a wholly-owned subsidiary by December 31, 2024.
The Middle East is a critical market for Sarveshwar Foods due to the growing demand for high-quality rice and rice-based products. By fully integrating Natural Global Foods DMCC, Sarveshwar Foods intends to consolidate decision-making processes and create operational efficiencies that will enable it to respond more effectively to market demands. The company sees this acquisition as a key step in building stronger connections with local consumers and expanding its footprint in a region with significant growth potential.
Sarveshwar Foods’ broader strategy revolves around becoming a global leader in the rice and rice-based products market. The integration of Natural Global Foods DMCC will establish a regional hub in the Middle East, enabling the company to cater to diverse culinary preferences and optimise its supply chain.
Commenting on this acquisition, Mr Rohit Gupta, Chairman of Sarveshwar Foods, said, “The integration of Natural Global Foods DMCC will not only enhance our ability to serve the increasing demand for premium rice and rice-based food products in the Middle East, but it will also allow us to leverage our expertise in the region more effectively. We are confident that this strategic decision will drive operational efficiencies, accelerate growth in the Middle East, and support our long-term vision of global expansion.”
The global rice-based products market was valued at approximately $32 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 5.3% from 2023 to 2030. This growth is fueled by increasing consumer demand for gluten-free and organic products, as well as rice’s versatility and health benefits. Sarveshwar Foods is well-positioned to capitalize on these trends, using its acquisition of Natural Global Foods DMCC to strengthen its leadership in this expanding market.
Through this strategic move, Sarveshwar Foods aims to deliver high-quality, authentic rice products to Middle Eastern consumers while driving innovation and growth in the global rice industry.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 2, 2024, 11:36 AM IST
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