May 4, 2015

 

Vietnam's protein sector gets boost with Masan acquisitions

 

 

Masan Group Corp. has acquired a 52% and 70% equity interest in Vietnam French Cattle Feed JSC ("Proconco") and Agro Nutrition Company JSC ("Anco"), respectively, with the purchase of 99.99% of the shares of Sam Kim Limited Liability Co. The Group subsequently renamed Sam Kim the Masan Nutri-Science.

 

Masan said the acquisitions were a key step to increasing the productivity of Vietnam's protein sector, as it noted that while Vietnam's gross domestic product (GDP) is just 1/10th that of the US, Vietnam's protein price per kilogram is 1.5 to 2 times more expensive.

 

Animal feed, it explained, is an integral component of the protein value chain and that innovation in this space would be critical to close the productivity gap between Vietnam and the developed world.

 

Masan said the acquisitions and establishment of Masan Nutri-Science provide the Group a leading platform to serve the growing US$6-billion animal feed sector. "Proconco and Anco, as a combined business, is the number one external pig feed and second overall animal feed player in Vietnam, supplying farmers with over 1.7 million metric tons of animal feed products in 2014 and is well on track to deliver revenue of $1 billion in 2015", it said in a statement.

 

The Group said it aims to build "power brands" and produce innovative products that conform to international standards, with Mr. Pham Trung Lam, leader of Masan Nutri-Science's operational platform, spearheading this operational transformation.

 

Masan said the combined animal feed and fast moving consumer goods (FMCG) platform would be critical in achieving Masan Nutri-Science's 2020 objective: a market share of 50% in Vietnam's animal feed market.

 

Danny Le, CEO of Masan Nutri-Science, said, "We saw a big unmet need years ago in the food and beverage space, and today we see a similar big unmet need in Vietnam's animal protein sector. I am confident that we can fulfill this big unmet need as we did in the food and beverage space, because we have a team that has the same passion, dedication, and capability to create value."

 

Mr. Pham Phu Ngoc Trai, chairman of Masan Nutri-Science and former CEO of Pepsi IndoChina, said partnering with Masan would "not only fulfill Vietnam's animal feed needs but, more importantly, drive the productivity of the animal protein sector."

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