Navis buys Malaysian durian producer

The size of the investment was not disclosed, but Navis is prepared to commit up to MYR400 million ($95 million) in expansion capital. The firm is currently raising its eighth Asian fund, which has a target of $1.75 billion and is understood to have reached a first close earlier this year. This is also Navis’ second food-focused deal in a fortnight, following the purchase of a controlling stake in Srithai Food Group, a Thailand-based seasoning and condiments supplier.

Founded in 1996 as an exporter of Malaysia-made goods, Hernan started shipping frozen durians to Australia in 2004. In 2011, the company signed its first export agreement with China. A 40-acre durian orchard was purchased the same year, which led to the cultivation of Musang King durians and other tropical fruits. The company now ships a range of fruits, snacks and desserts to customers in Australia, New Zealand, China, Hong Kong, France, the Netherlands, and the US.

Malaysia and Thailand are the world’s leading durian producers. China’s durian imports came to approximately $1 billion in 2018 and this figure is expected to double by 2023, Navis said in a statement. The Musang King durian commands a price premium due to its distinct taste.

At present, durian cultivation and processing is a cottage industry with little standardization in agricultural practices or product traceability. Navis plans to turn the company into a fully integrated and industrialized operation, while supporting capacity expansion across various product lines. This includes working with a local partner to purchase up to 10,000 acres of durian plantations, with an initial focus on Pahang state.

“We believe there is substantial scope for the application of agri-tech, the internet-of-things and Industry 4.0 to modernize the entire value chain from durian farming to processing, and will look to adopt an open collaboration approach together with other industry players for knowledge and best practice sharing to raise the standards of the industry as a whole,” said Nick Bloy, a managing partner at Navis.

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• Topics
• Southeast Asia
• Buyouts
• Consumer
• Malaysia
• Navis Management
• Agriculture