Abu Dhabi, United Arab Emirates, April 14, 2021: Agthia Group PJSC revealed its long-term strategy to become an F&B leader in the Middle East, North Africa, and Pakistan (MENAP) region and beyond by 2025. The strategy is built on three strategic pillars (growth, efficiency, and capability) and is designed to extend the Group’s market leadership, provide significant value for all stakeholders, and continue to drive profitability growth with a consumer-centric approach.
The Abu Dhabi-based organization is engaged in manufacturing, distribution, and marketing of a wide range of F&B products, including popular regional brands such as Al Ain (water), Al Foah (dates), Al Faysal Bakery & Sweets (bakery), and Grand Mills (flour and bakery) among others.
Khalifa Sultan Al Suwaidi, Chairman, Agthia Group, said: “The strategy will unleash the full potential of the exceptional capabilities we have built, create greater opportunities for our people, and act as a catalyst for us to again set new benchmarks in the F&B industry.”
Alan Smith, Chief Executive Officer, Agthia Group, said: “Our strategy stems from an in-depth assessment of the business and a clear vision of where we want to go. We will continue to get leaner, protect our core business, and ensure that our progress is agile and deliberately paced.”
Agthia will deliver on growth by upscaling in priority markets, expanding into value-add categories, and driving margin improvement by 2025. This will be made possible by strengthening the core base, including strengthening the water category, protecting flour and feed categories as well as shifting the portfolio mix towards higher-margin categories.
In addition, Agthia has embarked upon a robust inorganic growth strategy that is focused on the acquisition of companies with strong consumer brands that are market leaders in their respective categories.
“The strategy will generate cost and revenue synergies through cross-selling opportunities and enhancing the Group’s regional brand portfolio,” explained Smith.
Agthia is targeting a savings of AED200 million through synergy extraction as well as simplification of its existing and acquired businesses. Along with strategic partnerships for distribution and marketing, the organization will enhance commercial and working capital excellence, operational optimization, lean procurement as well as manufacturing and supply chain management. Non-scalable assets will be divested while suppliers and specifications will be streamlined.
