Growtheum backs Indonesia's Kin Dairy

The size of the transaction was not disclosed. Deals in Growtheum’s debut fund, which closed on USD 567m in August, have ranged from USD 75m to USD 250m with significant use of co-investment. The previous dairy investment – in Vietnam-based International Dairy Products (IDP) – reportedly saw the firm pay approximately USD 100m for a 15% stake.

Kin Dairy was established as a joint venture between ABC Holding, an Indonesian conglomerate with extensive food and beverage interests, and Japan’s Mitsui & Co. In 2017, Mitsui acquired a 30% stake in ABC Kogen and a 30% stake in Raffles Pacific Harvest, a dairy farm controlled by ABC Group. Both parties pledged to invest in developing capacity and product quality.

Kin Dairy is now a vertically integrated dairy manufacturer that produces yoghurt and milk products under the Kin brand. The dairy farm, based in the highlands of West Java, is one of the largest in Indonesia with 3,000 head of cattle and claims the highest yields of milk production nationwide.

In addition, the farm is the only one in Indonesia dedicated to producing A2 milk, which contains the A2 beta-casein protein and is marketed as a healthier option than regular milk, or A1 milk. According to a statement, A2 milk is easier to digest by the human gut due to the difference in its amino acid strand structure compared to the general cow milk.

Warren Choo, president director of Kin Dairy, said that Growtheum’s industry knowledge, network, and track record of working with management teams to develop consumer companies in Southeast Asia were compelling factors.

“This partnership combines our sector expertise with the experience of the Choo family, shareholders of the ABC group with a long and proven legacy of building trusted consumer brands, and the global reach of Mitsui, an experienced trading powerhouse,” added Amit Kunal, a managing partner at Growtheum.

“We aim to work together to realize KIN’s mission of increasing accessibility of quality nutritious dairy products to consumers across Indonesia.”

Kunal established Growtheum in 2021, having previously spent a decade leading direct private equity investments in Southeast Asia for GIC. Other Fund I investments include digital lender Bank Allo and online grocery business Allo Fresh. Both are Indonesia-based and have ties to local conglomerate CT Corp.

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• Topics
• Southeast Asia
• Expansion
• Consumer
• Indonesia
• Growtheum Capital Partners
• Mitsui & Co
• Growth capital