VinaCapital invests $32.5m in Vietnam food player

The firm invested via its Vietnam Opportunity Fund (VOF), a London-listed vehicle regulated by the Vietnam government that closed in 2006 at $475.1 million. According to a release, VOF may invest a moderate amount of additional capital in the company during the next 12 months pursuant to the achievement of mutually agreed milestones.

Founded in 2001, Ba Huan is said to be the largest player of its kind in Vietnam, with more than 30% of the pasteurized egg market and modern, international-standard production line infrastructure acquired through European suppliers. The company expects to generate more than $90 million in revenue during 2018 through new management practices and improved governance.

“Ba Huan has become one of the strongest fresh food brands in Vietnam,” Andy Ho, a managing director of VOF, said. “Food safety is a concern in the country, and Ba Huan’s growth is due to its reputation for producing high-quality and safe foods. It has a history of innovation, a management team with a clear vision for expansion, and a market that is rapidly growing.”

The GP cited poultry industry research indicating that egg consumption was on the rise in Vietnam, with chicken demand growing at 8.6% per annum. Average chicken consumption is forecast to expand to nearly 17 kilograms a year by 2021, from around 8 kg in 2015, driven by urbanization and a growing middle class with greater disposable income.

VinaCapital claims $1.8 billion in assets under management across a range of asset classes including private equity, venture capital, real estate and fixed income. VOF, the firm’s flagship vehicle, makes buyout and growth capital investments in both public and private equities with a remit spanning consumer, financial and industrial sectors.

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• Topics
• Southeast Asia
• Consumer
• Expansion
• VinaCapital
• Vietnam
• Growth capital
• manufacturing