Italy’s rice company Euricom has secured antitrust approval to establish a 50-50 joint venture with Fatima Rice Mills (Pvt) Ltd., marking one of the first moves by a foreign firm to set up a rice export base in Pakistan. As part of the deal, Euricom will acquire a 50% stake in the newly formed Fatima Euricom (Pvt) Ltd., with Fatima Rice Mills holding the remaining share.
Fatima Euricom owns Pakistan’s most advanced Basmati rice processing facility, positioning it to capitalize on the country’s status as a key supplier of premium Basmati rice that meets the stringent quality standards of European markets.
Currently, around 80% of Europe’s Basmati imports are sourced from Pakistan. With this transaction, Euricom becomes the only major player in the rice industry to secure a local partner and an export base in Pakistan. As a leading global operator in the sector, Euricom aims to leverage the growing demand for Basmati, helping the joint venture expand into the EU, UK, and other international markets.
Bruno Sempio, Euricom’s president, said: “We’ve been working with Fatima for 15 years, building a robust partnership that has brought high-quality Basmati rice to European consumers. This deal strengthens our supply chain control and enhances vertical integration, allowing us to secure supply while promoting ethical and sustainable practices.”
Ghulam Sarwar, CEO and owner of Fatima Rice Mills, highlighted the significance of the partnership: “Fatima Rice Mills has enjoyed a long-standing business relationship with Euricom. This year, we made a major leap forward with the opening of a state-of-the-art processing facility. We’re honored that Euricom has selected our new plant for this joint venture. This collaboration is a valuable opportunity for our company and for Pakistan, particularly in a time of limited foreign investment. We are confident this JV will benefit small producers and boost Pakistan’s export growth.”
The transaction is expected to close by December 31, 2024.