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UAE's Agthia Group Expansion Strategy

Grand Mills was founded in UAE in 1978 with a mission of food security and sustainable communities. It expanded into water business in 1990 and went public on the Abu Dhabi exchange in 2004 while still majority owned by the UAE government. After privatization, Agthia grew through numerous acquisitions and partnerships to expand into new markets and products across the GCC and beyond. Recent moves include expansions in KSA, Egypt, and partnerships in animal feed and bottled water across the Middle East. Going forward, Agthia aims to leverage events like Expo 2020 and the 2022 World Cup to continue growing while also pursuing additional acquisitions in North Africa and Asia.

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361 views10 pages

UAE's Agthia Group Expansion Strategy

Grand Mills was founded in UAE in 1978 with a mission of food security and sustainable communities. It expanded into water business in 1990 and went public on the Abu Dhabi exchange in 2004 while still majority owned by the UAE government. After privatization, Agthia grew through numerous acquisitions and partnerships to expand into new markets and products across the GCC and beyond. Recent moves include expansions in KSA, Egypt, and partnerships in animal feed and bottled water across the Middle East. Going forward, Agthia aims to leverage events like Expo 2020 and the 2022 World Cup to continue growing while also pursuing additional acquisitions in North Africa and Asia.

Uploaded by

manish menon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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UAE’s Agthia Group’s

Growth through Acquisitions


Prepared By:

Mignon Naomi Pereira


Justine Johnson
Manish Menon – 18BSP0618
Mansi
Akhil
Akash
Grand Mills founded by the late Sheikh Zayed,
Sheikh Khalifa, pro-west just like his father
an Emirati politician and member of Al Nahyan
Sheikh Zayed took over after the latter’s
in UAE with just a few flour mills with the
demise. Until 2004 it was managed and owned
mission to ensure food security and create
by UAE Govt.
sustainable communities in the region.

1978 1990 2004 2004

It forayed into water business by setting up a IPO on Abu Dhabi Securities Exchange and
subsidiary called Al Ain water company. name changed to Agthia Group. 56% still
owned by the UAE Govt.

Introduction
Privatization Impact
 Hiring professionals from across globe.
 There were numerous acquisitions, partnerships apart from greenfield expansions.
 In 2007, signed(Al Ain) MOU to acquire Ice Crystal Mineral Water company. UAE to ROW
 In 2008, acquired Capri-Sun(juice concentrate) to mark presence in GCC(Gulf Cooperation
council) countries.
 In 2008 again, it acquired a company that processed and sold vegetables by UAE farms and
renamed it to Al Ain vegetable processing and canning factory and by this they captured UAE
and MENA region.
 Egyptian expansion in 2009 (Greenfield Expansion).
 2010- franchise agreement with Yoplait of France to sell dairy products in UAE and then
expanded to GCC countries.
 Again in 2010, it acquired 100% share of Pelit SU, a Turkish bottled-water supplying company
and entered premium bottled water supplier market.
 In 2013, it came into an agreement with Monster Energy drink to sell the drink in UAE. It
helped the company to diversify and expand its beverage product portfolio.
Agthia’s Seven-Point Strategy, 2015
 Strengthen core organically in the UAE (Water, Flour, Animal Feed)
 Strengthen the UAE consumer business with a meaningful presence in 5-gallon Water,
Juice and Diary through Acquisition
 Expand internationally through M & A and JV
 Expand leadership of Agri Business through Greenfield Expansion or Animal Feed
acquisition
 Turn around non-core businesses (tomato paste, frozen vegetables and frozen bakery)
 Enhance performance margins through identifies levers
 Align organization and capabilities to deliver sustainable profitable growth
Recent acquisitions and expansions

 2016- Acquisition of Delta marketing company to expand reach of bottled water in KSA market.
 Partnership with GTC in KSA to distribute its retail Flour products in UAE and KSA.
 2017- JV with Anderson hay and Grain Co. which gives agthia the rights to become a distributor
of Anderson’s forage products.
 2018-JV with Kuwait’s Al wafir called United Khaleeji Water co.
Challenges
 Reduction in demand
 Impact of VAT
 Great Diversity
Road Ahead

 Compounded annual growth rate (CAGR) to grow by major events like Expo 2020
Dubai, FIFA world cup 2022.
 No. of F&B outlets to be increased to 19000 from 16000 by 2020.
 Research predicts that many factors would fuel the growth of the Organization.
 Company plans to raises finances by 2 million to fund it acquisitions by various banks
and financial institutions.
 Company aims to double its revenue in KSA in the next 3 years.
 Company looking for acquisitions opportunities in north Africa and Asia by 2021to
expand beyond middle East.
Learning Outcome
Thank You

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