Al Islami Foods sells minority stake to Mitsubishi Corporation
The deal, which was formed by a study conducted by the firm into the strategic options for NPD, is expected to help the manufacturer grow its footprint in the hotel, restaurant and catering market, as well as foodservice segments across the UAE.
The manufacturer, which is part of the Dubai Cooperative Society, said the sale of the stake would help the business drive international expansion by increasing its production in double-digits over the next five years. According to Al Islami Foods, the global halal food industry has aspirations to reach a value of US$1.7 trillion by 2020, with consistent double-digit growth year-on-year.
“This association with Mitsubishi Corporation is another step in Al Islami Foods’ ongoing efforts to accelerate growth,” said Saleh Saeed Lootah, chairman of the board directors for the Dubai Cooperative Society. “Mitsubishi provides our company and brand with tangible solutions to help with added production capacity that will help accommodate the growing demand for our products both locally and globally.
“This tie-up will bring Mitsubishi’s unique capabilities and expertise into the frozen food category in the Middle East, by providing technology at the back-end and putting in processes in the front-end, which we look forward to leveraging.”
For Mitsubishi, the investment will enable them to capitalise on the firm’s distribution in key international markets, particularly in Asia.
Al Islami Foods Group, which has the second-largest market share in frozen meat products in the UAE, supplies more than 100 frozen products under three brands to cater to various market segments, including chicken and processed products.
The company operates through three warehouses and employs over 350 people, with a manufacturing facility located in Al Hamriyah Freezone in the UAE.
GlobalMeatNews has contacted Mitsubishi Corporation for comment.
