Masan Group Acquisions Create Vietnam\'s Second Largest Feed Company
Newly formed Masan Nutri-Science has two operating companies, Proconco and Anco. 2014 combined sale volume reached over 1.7 million tons, covering pig, poultry and cow feed as well as aquafeed.
April 30, 2015
Masan Group Corporation has acquired a 52% and 70% equity interest in Vietnam French Cattle Feed JSC (“Proconco”) and Agro Nutrition Company JSC (“Anco”), respectively, with the purchase of 99.99% of the shares of Sam Kim Limited Liability Company (the “Company”). The Group has subsequently renamed the Company Masan Nutri-Science. The resulting business has two operating companies, namely Proconco and Anco. 2014 combined sale volume reached over 1.7 million tons, covering pig, poultry and cow feed as well as aquafeed. Masan Nutri-Science has one of the most extensive distribution network with 2,000 distributors across Vietnam. It is expected to have 13 facilities by the end of 2015.
Masan said the acquisition is a key step to increasing the productivity of Vietnam’s protein sector – Vietnam’s GDP per capita is 10 per cent of the United States, but Vietnam’s protein price per kilogram is one-and-a-half to two times more expensive. Animal feed is an integral component of the protein value chain and innovation in this space will be critical to close the productivity gap between Vietnam and the developed world.
Mr. Pham Phu Ngoc Trai, Chairman of Masan Nutri-Science and former CEO of Pepsi IndoChina, said, “My vision and aim are to contribute to the development of our country and enhance the livelihoods of Vietnamese people. I strongly believe I can achieve this by partnering with Masan to not only fulfill Vietnam’s animal feed needs, but more importantly, drive the productivity of the animal protein sector.”
The acquisition and establishment of Masan Nutri-Science instantly provides the Group a leading platform to serve the growing US$6 billion animal feed sector. Proconco and Anco, as a combined business, is the number one external pig feed and second overall animal feed player in Vietnam, supplying farmers with over 1.7 million metric tons of animal feed products in 2014 and is well on track to deliver revenue of USD1 billion in 2015.
The Group plans to transform Masan Nutri-Science by bringing the best practices of the FMCG industry to further strengthen the Company’s operating platform. In particular, Masan’s aim is to build “power brands”, develop the leading distribution network in terms of coverage and effectiveness and produce innovative products that conform to international standards. Mr. Pham Trung Lam, leader of Masan Nutri-Science’s operational platform, will spearhead this operational transformation. He previously served as Chief Customer Officer of Masan Consumer, a subsidiary of the Group, where he played a critical role in building Masan Consumer into Vietnam’s leading diversified food and beverage company.
The combined animal feed and FMCG platform will create significant synergies and will be critical in achieving Masan Nutri-Science’s 2020 objective: a market share of 50% in Vietnam’s animal feed market.
Danny Le, CEO of Masan Nutri-Science, said, “We saw a big unmet need years ago in the food and beverage space, and today we see a similar big unmet need in Vietnam’s animal protein sector. I am confident that we can fulfill this big unmet need as we did in the food and beverage space, because we have a team that has the same passion, dedication, and capability to create value.”
Proconco was established in 1991 as the first joint venture between France and Vietnam in the feed manufacturing sector. The company’s most popular brand is “Con Co” which is the oldest feed brand and also one of the most premium feed brands in Vietnam. Proconco’s total capacity by 2014 is approximately 1.4 million tons.
Anco was established in 2003 as a joint venture between Malaysia and Vietnam with its first feed factory commissioned in Dong Nai province. Anco’s total capacity at the end of 2014 was 750,000 tons.