Agthia in JV to build Kuwait bottled water plant
The plant is expected to start operations by the second half of 2017 and will mainly produce water under Agthia’s flagship brand of Al Ain
Agthia Group has entered into a joint venture with Kuwait’s Al Wafir Marketing Services Company to set up a bottled water plant in Kuwait.
The plant is expected to start operations by the second half of 2017 and will mainly produce water under Agthia’s flagship brand of Al Ain.
Kuwait’s water consumption per capita is one of the highest in the world.
With the population set to rise by more than 3% and GDP to grow around 4.3% annually, the bottled water market in Kuwait is projected to expand from around 600 million liters to about 750 million liters by 2019.
With this 50-50 venture, Agthia is aiming to significantly increase its presence in the country and also use Kuwait as a hub for export opportunities into neighboring countries.
Iqbal Hamzah, CEO, Agthia Group, said: “Regional expansion in water is a critical part of our strategy. Moreover, the decision to aggressively grow the Al Ain brand in Kuwait through partnering with Al Wafir is the right move, given their strong and diverse business model. Al Ain’s roots go back to 1978 when the late HH Sheikh Zayed bin Sultan Al Nahyan sowed the seeds of this water company. Therefore, building the first Al Ain Water plant outside the UAE represents a historic moment to us."
Marzouq J Al-Bahar, CEO of Al Wafir, added: “Kuwait is a very interesting market to enter, with its growing population and high demand for bottled water. We are very excited about going into this partnership with Agthia. The dominant position Agthia has achieved in the UAE water segment demonstrates their abilities as a dynamic company. We are confident that the joint venture can quickly tap into the market potential of Kuwait.”