Growtheum backs Vietnam's International Dairy Products

Growtheum paid approximately USD 100m for a 15% interest, Bloomberg reported. According to a statement, the proceeds will support expansion within Vietnam and across Southeast Asia on an opportunistic basis. Vietnam’s dairy industry is expected to see steady growth on the back of rising demand for nutritional products, the statement added.

IDP was previously owned by VinaCapital and Daiwa PI Partners, which paid USD 45m for a 70% stake in 2014. VinaCapital’s position was 55%. When they invested, the company – then known as Bavi – was in distress. The first 18 months were devoted to restructuring, specifically addressing the capital structure, fixed assets, and product portfolio. IDP returned to profitability in 2019.

VinaCapital and Daiwa sold a 28% stake to a consortium led by local consumer goods investor Blue Point for an undisclosed sum in July 2020. One month later, they received USD 45.7m for the remaining 37%.

IDP went public in 2021. The company’s stock jumped 14% to close on VND 265,000 – sending its market capitalisation to VND 15.6trn (USD 665m) – following the announcement of Growtheum’s investment on April 13. Trading data released by Vietstock indicated that 6.5m shares were traded for VND 1.68trn a day earlier. IDG’s stock, like many listed in Vietnam, typically trades very thinly.

Founded in 2004, IDP has a product portfolio that encompasses fresh milk, yoghurt, and malt drink. Raw milk comes from its own farms, while certain products use milk imported from Australia.

Sales amounted to VND 6.1trn in 2022, up from VND 4.8trn a year earlier. Over the same period, net profit fell from VND 823bn to VND 810bn. In 2018, revenue reached only VND 1.3trn and the company posted a net loss of VND 44bn. By 2020, the year VinaCapital and Daiwa made their exit, revenue and net profit were VND 3.8trn and VND 502bn, respectively.

“We are impressed with IDP’s innovative brand-building capabilities, diversified product portfolio and extensive distribution network. The company has transformed under the leadership of its management team,” said Amit Kunal, a managing partner at Growtheum, who previously spent a decade at GIC, leading a team that made more than 25 solo direct investments in the region.

“We look forward to working closely with IDP’s management team and existing shareholders to strengthen its market position in Vietnam and expand its footprint in the regional markets.”

This is Growtheum’s third investment from its debut fund, which reached a first close of around USD 400m last year. The overall target is USD 750m. The firm is primarily interested in minority growth investment in companies with exposure to discretionary consumption in Southeast Asia. Cheque sizes top out at USD 150m, but there are plans to offer plentiful co-investment.

Growtheum’s first deal was a commitment to Indonesian digital lender Bank Allo alongside numerous strategic players. It put in USD 250m: USD 50m from the fund and USD 200m from co-investors. This was followed by a USD 75m investment – of which USD 20m came from the fund – in Allo Fresh, an Indonesian online grocery business established with Bukalapak and Trans Retail Indonesia.

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

• Topics
• Southeast Asia
• PIPEs
• Expansion
• Consumer
• Vietnam
• Growtheum Capital Partners
• Growth capital