After a successful deal Group takes second place in Vietnam's animal feed market.
The Masan Group has acquired a 52 per cent and 70 per cent interest, respectively, in the Vietnam French Cattle Feed JSC (Proconco) and the Agro Nutrition Company JSC (Anco) with its purchase of 99.99 per cent of shares in the Sam Kim Limited Liability Company. The Group has subsequently renamed Sam Kim as Masan Nutri-Science.
Proconco and Anco, as a combined business, is the Number 1 pig feed and second-largest animal feed player in Vietnam, supplying farmers with over 1.7 million metric tons of animal feed in 2014 and is well on track to deliver revenue of $1 billion in 2015.
The combined animal feed and FMCG platform will create significant synergies and be critical in achieving Masan Nutri-Science’s 2020 objective of holding a market share of 50 per cent in Vietnam’s animal feed market.
“We aim to contribute to the development of our country and enhance the livelihoods of Vietnamese people,” said Mr. Pham Phu Ngoc Trai, Chairman of Masan Nutri-Science and former CEO of Pepsi IndoChina. “The Group not only fulfills Vietnam’s animal feed needs but, more importantly, drives productivity in the animal protein sector.”
The acquisition is a key step in increasing productivity in Vietnam’s protein sector and in serving the growing $6 billion animal feed sector. Vietnam’s GDP per capita is 1/10th of the US but its protein price can be nearly double per kilogram. Animal feed is an integral component of the protein value chain and innovation in this space will be critical to close the productivity gap between Vietnam and the developed world. “We see a major unmet need in Vietnam’s animal protein sector,” said Mr. Danny Le, CEO of Masan Nutri-Science.
Proconco was established in 1991 as the first joint venture between France and Vietnam in the feed manufacturing sector. The company’s most popular brand is “Con Co”, which is the oldest feed brand and among the most premium feed brands in Vietnam. Proconco’s total capacity in 2014 was approximately 1.4 million tons.
Anco was established in 2003 as a joint venture between Malaysia and Vietnam with its first feed factory commissioned in southern Dong Nai province. Its total capacity in 2014 was 750,000 tons.