Emerging World has signed a 30-year land lease agreement with Khalifa Economic Zones Abu Dhabi (Kezad Group) for setting up a manufacturing plant in the emirate to cater to local and regional markets.
Emerging World is the sole importer in the Middle East region of the products of PRAN-RFL Group, a leading food and beverage, agribusiness and plastics manufacturer and exporter in South Asia.
Headquartered in Dhaka, Bangladesh, PRAN (Programme for Rural Advancement Nationally) pioneered agribusiness in that market since 1981, by providing farmers with guaranteed prices.
The new PRAN manufacturing facility will be set up on a more than 42,000 sq m area within Kezad at a total investment of AED110 million ($30 million), said a statement from Kezad.
To be developed in multiple phases, the new facility will have direct access to AD Ports Group’s flagship Khalifa Port, it stated.
With almost a third of production capacity from the facility catering to the local market, and 70% to be exported to the regional markets, PRAN will play a vital role to ensure food security in the region through Abu Dhabi, it added.
Kezad Group CEO Mohamed Al Khadar Al Ahmed said: "We are delighted to welcome Emerging World and enable the development of this new manufacturing facility within our expansive food trade ecosystem, an environment that ensures that businesses can thrive in today’s competitive market."
The new facility will enable Emerging World to locally produce and export its products to free trade markets throughout Mena region, namely Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, Jordan, Egypt, Iraq, Lebanon, Morocco, Tunisia, Palestine, Syria, Libya and Yemen.
"Emerging World shares our mission on the importance of securing national and regional supply chains, in line with the vision of our wise leadership to improve access to affordable healthy diets for people across communities," he stated.
On the strategic deal, Emerging World Managing Director Hasan Mahbub said it was mainly aimed at boosting the group's exports to Middle Eastern countries.
"For us the establishment of the manufacturing facility in Abu Dhabi is a significant milestone to expand our business. An initial investment of AED60 million will be made to set up the manufacturing facilities, with production of different food products including instant noodles, milk added drinks, fruit drinks and confectionery products under the PRAN brand."
"Initially we expect production revenue to be in the region of AED160 million per annum," he added.-TradeArabia News Service