Saudi Arabia’s Salic has taken a minority stake in India’s Daawat Foods, a rice producer owned by the country’s LT Foods.

The Saudi Agricultural and Livestock Investment Company (Salic) conducted the transaction through its subsidiary, United Farmers Investment Company, acquiring a 29.8% stake in Daawat from the India Agri Business Fund. The deal price is US$17.2m.

The India Agri Business Fund is owned by Dutch investment bank Rabobank, and invests in food and agri-businesses in India. The fund has been an investor in both Daawat and LT Foods since 2009.  

LT Foods, led by chief executive Ashwani Arora, retains the remaining 70% stake in Daawat.

Arora said in a statement: “[The] partnership with Salic will help us to open up and create new opportunities for business in the Middle East, besides strengthening our presence there. It gives us lot of satisfaction to provide a rewarding exit to the Rabo Fund which has been a partner with us for close to ten years and have added to our growth with its immense knowledge of this sector. It is also a matter of pride for us that this exit by them brings us a new strategic partner.” 

LT Foods, based in Gurgaon in the state of Haryana, owns the rice brands Daawat, Royal and Heritage. It also manufactures and packages PepsiCo’s Kurkure rice snack brand in India.

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By GlobalData