The International Holding Co. (IHC) was founded in 1998 as part of an initiative to diversify and grow non-oil business sectors in the UAE. Adhering to Abu Dhabi’s Vision 2030, the ADX-listed company implements economic diversification initiatives through acquisitions, strategic investments, and business combinations. Comprising more than 30 entities, IHC seeks to expand its holdings across a growing number of sectors, including real estate, agriculture, healthcare, food and beverage.
With a market cap of Dh2.88 billion, Ghitha – earlier known as Zee Stores - is a subsidiary of IHC, Abu Dhabi’s fastest-growing stock. The company engages in trading and importing fresh consumables and canned, preserved, and frozen foods.
Following the rebranding, Ghitha aims to add several related businesses through acquisitions and subsidiary formations. Acquisitions will enable the firm to enhance its core capabilities in wholesale import and trading, packaging, and providing food services to industrial sites such as oilfields. For example, Ghitha acquired soft commodity distributor Royal Horizon at the start of 2021.
Capitalising on an acquisition
Revenues for 2021 were Dh546 million, an 89 per cent increase from the same period in 2020. Additionally, the company announced profits of Dh59.7 million for the year, up from Dh12.3 million in 2020. Ghitha attributed the increase to a successful business acquisition. Moreover, for 2021, revenues also grew 60.6 per cent to Dh136.3 million in Q4-2021, compared to Dh84.8 million in Q4-2020.
The management believes that the new strategic direction will facilitate Ghitha to be one of the largest players in the regional food trade sector and contribute to achieving the UAE’s national food security strategy. In addition, the continued momentum of the consumer foods distribution strategy will continue to spur the company’s performance.
The company’s goals are aligned with the UAE’s vision to move forward with its food security programme, prioritizing an expansion of local production and regional interconnectivity. The country aims to attain the top ranking in the Global Food Security Index by 2051.
It is essential to carve a roadmap that will help the UAE prepare for future challenges, including increased pressure on demand and supply for food and water resources. Ghitha hopes to capitalize on emerging opportunities by tapping the F&B vision of the UAE.
