VinaCapital and Daiwa pour US$45 million in IDP
VinaCapital and Daiwa pour US$45 million in IDP
VinaCapital Vietnam Opportunity Fund and Japan's Daiwa PI Partners will invest approximately US$45 million in Viet Nam's International Dairy Joint Stock Company (IDP).
The investment deal was revealed at a ceremony held in HCM City on December 18. This capital will propel the two businesses to become IDP's biggest shareholders, with ownership of 70 per cent of the company's capital, reported online portal vietstock.vn.
IDP has the main trademark Ba Vi for its milk products, which include fresh milk and yoghurt. It also has other products such as z'Dozi and Purina fresh milk.
The company was set up in 2004. It has a processing factory in Chuong My town, some 25km away from the capital city and Ba Vi factory in Ba Vi District.
Andy Ho, representative of VinaCapital, shared during the ceremony that IDP's CEO, Tran Bao Minh, is the most important person for this investment co-operation between IDP, VinaCapital and Daiwa.
Minh, who is dubbed as a "marketing magician" in Viet Nam, used to work for Vinamilk, TH True Milk and Pepsico Vietnam. He shared that his company has been co-operating with more than 2,000 households to purchase more than 75 tonnes of liquid milk per day.
The company's Ba Vi yoghurt has occupied some 15 per cent of the domestic market share. In the northern region, it has held 30 per cent of the market share, placing it only behind Vinamilk.
Minh said that the IDP's growth rate in 2014 is 45 per cent, which is the highest compared with all other local milk companies. The company is targeting a growth rate of at least 60 per cent in 2015.
"The company aims to co-operate with Singapore in the future to study and apply new technology for production, which will consequently raise the milk's quality," revealed Minh.
Daiwa PI Partners Co., Ltd. is a member of the Daiwa Securities Group, which has representative offices in Japan, the United States, Europe and the Asia Pacific region, as well as in many other countries in the world. It focuses on private equity investments, non-performing loan investments and energy investments.
The VinaCapital Vietnam Opportunity Fund is one of the three funding sources of VinaCapital, a leading investment management and real estate development firm in Viet Nam, which has a diversified portfolio of $1.5 billion in assets under its management.
