The five-year plan, which marks the largest capital investment plan announced by Almarai, will replace the company's existing investment base and enable it to expand its capabilities in farming, manufacturing, distribution and logistics.
It will also provide funding to support product innovation, new business development, efficient use of existing resources, and development and training of workforce.
Almarai plans to finance the investment through its operating cash flows, traditional bank facilities, Saudi Industrial Development Fund and Arab Development Fund funds, or through its recently launched Sukuk programme - an Islamic equivalent of bonds.
The company has been seeking to expand its business internationally - in March 2012, it invested $22.4m to increase its stake in International Dairy and Juice Limited (IDJ), a joint venture formed with American food and beverage company PepsiCo, from 48% to 52%.
IDJ focuses on opportunities in dairy and juice segments in Southeast Asia, Africa and the Middle East, excluding the GCC countries.
In December 2011, Almarai invested $83.18m to acquire 100% shareholding of Fondomonte, a company that owns and operates three farms in Argentina, to secure its supply of farm feed for dairy herd and poultry businesses.
For the first quarter ended 31 March 2012, the company reported net profit of SAR 242.1m ($64.54m), up 2.9% from the previous year, while sales increased 17% to SAR2.04bn ($543.89m), driven by its expansion into other Gulf markets.
Almarai, based in Riyadh, Saudi Arabia, manufactures dairy and juice products under the Almarai brand; bakery products under the L'usine and 7 Days brands; and poultry products under the Alyoum brand.
