Almarai Report

1-CORPORATE STRUCTURE

Almarai is a prominent and remarkable food and beverage manufacturer company of

the Middle East which is also a leading distributor in its field i.e. dairy products and juice. It

is also considered the world’s largest upright incorporated dairy company. It was established

in 1977, and after a successful operation, currently, Almarai’s paid up share capital amounts

to SAR 8.0 billion, consisting of 800 million fully paid and issued shares of SAR 10.00 each.

Almarai’s existing and tradable shares were to the tune of by the end of 2016 amounted to

290 million shares, representing 36.3% of its total available shares. As at 31st December

2016, Almarai’s market capitalisation was SAR 54.8 billion.

Almarai is active in five categories across the Middle East and North Africa (MENA)

region. These market segments comprise of: Dairy, Juice, Bakery, Poultry and Infant

Nutrition. In Egypt and Jordan, Almarai is currently working and operating through its joint

venture International Dairy & Juice (IDJ) for Dairy and Juice products. Besides its main

Bakery segment, L'usine products, Almarai operates through its joint venture, Modern Food

Industries (MFI) also. It is a distinctive strength of the company that its corporate circle and

structure is going on increase day by day.

2- BUSINESS MODEL

Almarai’s distinguishing business model is persistent in acquiring ‘Quality you can

trust’. This business aim is reflected in all departments of Almarai and it contributes a great

strength to its advancement and development. A pledge to persistent progress lies at the heart

of Almarai’s day-to-day activity – and its business model helps management and staff to

understand and manage the interconnected processes that add to its efficacy and competence.

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3- CORPORATE CULTURE

The corporate culture of the Almarai is based on a certain framework. Transpiring the

specific areas of management that concern, Almarai’s stakeholders can be inclined by its

business. By vigilantly balancing these six areas while running its business, making decisions

and interacting and sharing information with its stakeholders, Almarai is firm in its belief that

it will construct a more wide-ranging, pliant and triumphant company. Corporate culture is

also an indicator of strong point of the company.

4- HUMAN RESOURCES MANAGEMENT

Maintaining the principle that human resources are the essential part of dynamic

growth, Almarai endlessly invests in hiring capable and competent professionals who

augment worth to the organization. The company is also concerned about cultivating its

employees’ craftsmanship and developing their leadership capabilities. The basic manifesto

of Almarai Human Resources team is motivated by Almarai’s core corporate philosophy of

‘Quality you can trust’. It is Almarai’s employees ability that drives modernization and

maintains its high value standards.

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5- Information Technology
Almarai believes in using the latest modes of communication as per available all

current sources of Information Technology in all fields of this company from accounts to

sales and marketing. The internal and external system of communication is purely based on

the most sophisticated and the latest logistics pertaining to IT department. This aspect not

only contributes too much towards its strength but also make it capable of competing in the

existing market. A great part of the company’s capital commitments are allocated for the

areas attached to information technology.

6- OPERATION AND LOGISTICS

Maintaining the competence of Almarai operations guarantee they deliver against

consumer and shareholder hopes. In 2016, Almarai handled its supply chain efficiently, with

minimum distraction and no key intrusions or power outages at Almarai’s manufacturing

facilities. Almarai different divisions performed remarkably excellent during the Holy Month

of Ramadan, when the company has to undergo substantial load because of delivering heavy

supply on time and in faultless form. Almarai’s Logistics division comprises of more than

8,000 trucks and cold trailers which is the largest number in the Middle Eastern market which

is a great strength of company.

7- RESEARCH AND DEVELOPMENT (R&D)

Almarai believes in constant enhancement and development of its existing categories.

To attain this target, the company adheres to a meticulous progression of research,

development and quality assertion. Their consumers are assured and made satisfied based on

performance that their Dairy, Juice, Bakery, Poultry and Infant Nutrition products have been

envisaged and developed to meet their explicit needs. Cautious extent and examination of

consumer insights strengthen every part of their product growth strategy.

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