Mulk enters global agro-commodities

Mulk Holdings’ ultra-modern production facility in Serbia will also be an integral part of the new joint venture.

By Staff Report

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Published: Mon 16 Mar 2015, 10:58 PM

Last updated: Fri 26 Jun 2015, 12:17 AM

Dubai — UAE-based conglomerate Mulk Holdings announced its entry into the global agro based products business, with the acquisition of 50 per cent equity stake in East Europe’s major agro commodities company Zitoprerada based in Serbia.

Zitoprerada is a market leader in Europe for agro processing and distribution, with 40 per cent market share of East Europe’s sunflower oil and agro products markets like corn, wheat, wheat flour, soya meal, soya oil and soya flour. Its facilities include cutting-edge silos capacity above 350,000 tonnes per annum, milling and production facilities in more than 10 locations around the Vojvodian province of Serbia .

The agreement was signed by Zitoprerada managing director Knevic Pedrag and Mulk Holdings chairman Shaji Ul Mulk, in the presence of delegates from both companies, at the global headquarters of Mulk Holdings, in Sharjah.  The new joint venture company will now be called Mulk Zitoprerada.

Mulk Holdings’ ultra-modern production facility in Serbia will also be an integral part of the new joint venture. As part of the agreement, Mulk Holdings will invest over $100 million in the next two years to increase capacities in both silos and manufacturing facililites, as well as set up a distribution base in Africa, the Middle East and Asian markets. The joint venture is also negotiating with one of the largest chains of European supermarkets to be their preferred supplier of agro products.

The Joint venture is a strategic win-win situation for both companies. Mulk Holdings, with its global presence and production expertise, will add value to the agro products supply chain experience and infrastructure of Zitoprerada. A phased expansion plan has been chalked out for the joint venture until 2019, and both sides are excited about the opportunities lying ahead.

“We have been keenly following the growing demand for quality agro based products in emerging markets. A pilot rice trading activity was conducted in test markets, and based on the positive outcome, we decided to take the leap and invest in the agro products sector. In the next five years, we aim to build this joint venture as a major force among Mulk Holdings’ portfolio, ” said Adnan Ul Mulk, vice-chairman of Mulk Holdings.

Through Mulk Zitoprerada, the two companies aim to build a global presence, reaching a turnover of Dh2 billion by 2019.

“We are excited about our partnership with a global company like Mulk Holdings. This will open new markets for our products, utilising their marketing presence in Middle East, Asian and African markets. At the same time, we plan to upgrade capacity and technology of the existing silos and milling facilities in Serbia, set up new silos in UAE and African markets,” said Knezevic Pedrag, managing partner of Mulk Zitoprerada.

— business@khaleejtimes.com



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