Creador invests in Malaysian bakery chain

Terms of the transaction were not disclosed. Creador is investing via its third Southeast Asia and India-focused fund, which closed late last year at $415 million. The fund makes buyout and growth capital investments across a range of consumer sectors. 

Founded in 1987, BWY operates 15 baking goods outlets across Malaysia that service both household and professional customers, including hotels, restaurants, and bakery chains. The company also offers baking classes at some locations and is planning to launch an online shopping service.

According to MarketsandMarkets, the global baking ingredients market is worth about $13 billion and is set to grow at 5.4% across the next five years. Developing economies in Asia are said to be among the fastest growing geographies due to improved purchasing power, increasing urbanization and a rise in the consumption patterns for baked products.

“Despite the impressive growth potential, the baking ingredients industry is still highly fragmented, often serviced by mom-and-pop shops or small chains focusing on individual states in Malaysia,” Brahmal Vasudevan, founder and CEO of Creador, said in a statement. “With the second generation of BWY’s founding family taking over the helm, it is well positioned for the next phase of growth.”

The deal marks Creador’s 26th investment since the GP was founded in 2011. The firm typically focuses on Malaysia, Indonesia, Singapore, and India, but has recently expanded its remit to include the Philippines and Sri Lanka.

Recent activity includes completion of a 5.3x turnaround of Indian tile maker Somany Ceramics and a INR2.7 billion ($43 million) minority stake investment in Indian hospital operator Paras Healthcare.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• Consumer
• Expansion
• Malaysia
• Creador
• Growth capital