Euricom, an Italian rice supplier, has established a new joint venture in Pakistan aimed at expanding its basmati rice operations. The collaboration, named Fatima Euricom, is formed in partnership with the local enterprise Fatima Rice Mills, although the financial details of the arrangement have not been disclosed.
According to Paul Lee, Managing Director of Euricom UK, this venture will operate the most advanced basmati rice mill in Pakistan. In a press inquiry before publication, Just Food sought additional insights from Lee.
Euricom reported that approximately 80% of Europe’s basmati rice imports originate from Pakistan. The company believes this venture will leverage its leadership in rice production to optimize access to international markets, reflecting emerging trends in the food and beverage industry.
Bruno Sempio, Chairman of Euricom, stated, “This partnership will help us enhance our control over the basmati supply chain and achieve a higher level of vertical integration, and as a result, we can more effectively secure our raw material supply while implementing sustainable and ethical practices. This is becoming increasingly important to both us and our customers.”
The deal, which has received approval from the Competition Commission of Pakistan, is expected to conclude by the end of the year. The Commission remarked that the transaction signifies a substantial step forward in attracting foreign direct investment (FDI) into Pakistan.
Furthermore, the deal is projected to enhance Pakistan’s capacity for rice exports, and the Commission emphasized, “Global agribusiness leaders increasingly recognize the country’s untapped agricultural potential.” The joint venture is slated to have a capacity of 30,000 tons.
Ghulam Sarwar, CEO of Fatima Rice Mills, expressed confidence in the collaboration: “We believe this partnership presents a valuable opportunity not only for Fatima but also for our country, particularly at this time when foreign investment in Pakistan is limited. We are confident that this joint venture will positively impact small farmers’ businesses and significantly boost Pakistan’s exports.”
Notably, last month, Euricom also acquired Polish snacks company Sonko for an undisclosed sum, a move that aligns with their strategy to bolster the food and drink business in Europe. This acquisition reflects a broader trend within the industry as major players seek opportunities for growth and diversification.
Sempio commented on the Polish acquisition, stating, “This synergistic transaction will help us achieve our target revenues of €1 billion ($1.1 billion) in the near term.”
Moreover, last year saw Japanese conglomerate Mitsui Co. purchase a stake in Euricom for approximately Y200 billion ($143.3 million), reflecting growing investor interest in Euricom’s business model and future prospects within the food and drink consumer trends landscape.
