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Agthia Embarks on Transformational Journey with its Strategy to Become an F&B Leader by 2025
In April 2021, we revealed our long-term strategy to become an F&B leader in the Middle East, North Africa and Pakistan (MENAP) region and beyond by 2025. The strategy is built on three strategic pillars, namely growth, efficiency and capability, and is designed to extend our market leadership, provide significant value for all stakeholders and continue to drive profitability growth with a consumer-centric approach.Our strategy stems from an in-depth assessment of the business and a clear vision of where we want to go. We will continue to get leaner, protect our core businesses and ensure that our progress is agile and deliberately paced. The effective integration of new businesses and the decisions we make in the near-term will also benefit us in the long-term.We will follow a disciplined expansion plan focused on the acquisition, integration and scaling of new businesses and create a more effective way to serve and innovate, as we continue to engage with our partners and key customers to leverage their insights in building a stronger portfolio.Strategic growth initiativesAs one of the three pillars outlined in our strategy, Agthia will deliver on growth by upscaling in priority markets, expanding into value-add categories and driving margins improvement by 2025 . This will be made possible by strengthening our core base, including strengthening the water category, protecting flour and feed categories as well as shifting the portfolio mix towards higher margin categories.In addition, we have embarked upon a robust inorganic growth strategy that is focused on the acquisition of companies with strong consumer brands that are market leaders in their respective categories.
Over time, the strategy will generate cost and revenue synergies as we integrate these businesses, through cross-selling opportunities and enhancing our regional brand portfolio.Improving efficiency across the boardGoing forward, we are targeting a savings of AED200 million through synergy extraction as well as simplification of our existing and acquired businesses. Along with strategic partnerships for distribution and marketing, we will enhance commercial and working capital excellence, operational optimisation, lean procurement and manufacturing and supply chain management. Furthermore, non-scalable assets will be divested while suppliers and specifications will be streamlined.Enhancing organisational capabilitiesWe will continue to develop our human capital and acquire additional talent with a clear attention to category management expertise, in the hope of aligning our capabilities with the expected demands of a growing organisation.Our key focus for the next five years includes digitalising performance management systems and implementing change initiatives across the board with a continued emphasis on sustainability and innovation.
Our reinvigorated strategy is underpinned by a relentless ambition to become an F&B leader in the MENAP region and beyond by 2025. We will continue to drive efficiencies in our operations, optimise product portfolio, maintain a principled allocation framework and adopting a best-in-class Environment, Social & Governance (ESG) agenda to enhance consumer experience and deliver shareholder returns in line with global standards.