General Atlantic invests $130m in Indonesia's Cimory

The investment is intended to help the company accelerate its growth initiatives, including new product development and product innovation, the extension of its distribution networks, and improvements in digital marketing and pricing strategies, according to a statement.

Cimory's stock, which has a relatively low trading volume, closed up 0.24% at IDR 4,150 on January 10, giving the company a market capitalisation of approximately IDR 32.8trn (USD 2.1bn).

Founded in 1992 by Bambang Sutantio, Cimory sells premium dairy goods – including yoghurt and milk products – under the Cimory brand and a range of ready-to-cook and ready-to-eat sausages and chicken nuggets under the Kanzler brand. It claims a strong track record of innovation, having been the first to roll out yoghurt products locally in 2006.

Distribution is primarily through modern and general trade channels, where it works with around 120 partners that have over 75,000 outlets. However, the company has also built out a direct-to-consumer (D2C) channel called Miss Cimory, which employs 4,000 predominantly female sales staff who market to more than 200,000 households every week.

Cimory received USD 13.6m in funding from Creador in 2015, AVCJ Research's records show. The private equity firm exited through a share buyback in late 2019. Cimory's IPO in December 2021 saw the company raise IDR 3.66trn after offering 1.19bn shares at IDR 3,080 apiece, close to the top end of the indicative range.

General Atlantic expects the company to benefit from rising protein consumption – including dairy, eggs, and meat – in Indonesia on the back of strong economic growth. The private equity firm was impressed by Cimory's high-quality products that address a range of consumption patterns and price points as well as its digital re-orientation, which has helped build a following among younger consumers.

"We believe Cimory has developed a differentiated brand and product portfolio that is uniquely suited to the evolving needs of the local consumer. With exciting economic growth being driven out of Indonesia and Southeast Asia, Cimory has an opportunity to further scale its product portfolio and reach new consumers," said Sandeep Naik, head of India and Southeast Asia at General Atlantic.

Cimory posted sales of IDR 4.09trn in 2021, up 120% year-on-year, while net profit rose 346.4% to IDR 790.2bn. The dairy and consumer foods contributions to sales were IDR 2.65trn and IDR 1.45trn, respectively. Approximately 84% of sales came through modern and general trade, with Miss Cimory accounting for 10.17% and 6.57% through other channels.

General Atlantic, a global growth equity investor with more than USD 73bn in assets under management, opened an office in Jakarta in 2019. Former and current Indonesian investments include consumer brands franchisor MAP Boga Adiperkasa, drug developer Kalbe Genexine Biologics, and online education platform Ruangguru.

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• Topics
• Southeast Asia
• Consumer
• PIPEs
• Indonesia
• General Atlantic