VinaCapital spends $32.5 million on egg and poultry firm Ba Huan

12:21 | 27/02/2018
VinaCapital Vietnam Opportunity Fund (LSE: VOF), the flagship fund of VinaCapital, has injected $32.5 million in the Vietnamese producer of pasteurised eggs and poultry meat, Ba Huan JSC.

Apart from acquiring a significant minority stake in the company, VOF said that it may also invest moderate additional capital during the next twelve months as the company delivers on mutually agreed milestones.

According to Andy Ho, managing director of VOF, the private equity investment is consistent with VOF’s strategy of focusing on companies operating in fast-growing sectors. “Vietnamese food and beverage companies have tremendous growth opportunities ahead as consumers spend more on high-quality, healthy products. Ba Huan is well-positioned to capitalise on these trends, and we are excited to work with them to realise their potential,” said Ho.

Food safety is a concern in the country, and Ba Huan’s growth is due to its reputation for producing high-quality and safe food. It has a history of innovation, a management team with a clear vision for expansion, and a market that is rapidly growing.

Holding more than 30 per cent of the pasteurised egg market, Ba Huan is a popular household name in Vietnam. The company has made significant investments in its operations, importing modern production lines from Europe and adhering to international standards.

The company has implemented a fully-integrated and enclosed value chain from feed production and farming to producing fresh, safe, and clean meat, eggs, and processed foods, enabling it to fully control product quality across the value chain and allowing it to fully trace its products. In 2018, the company expects its revenue to surpass $90 million.

“Ba Huan has become one of the strongest fresh food brands in Vietnam. Food safety is a concern in the country, and Ba Huan’s growth is due to its reputation for producing high-quality and safe food. It has a history of innovation, a management team with a clear vision for expansion, and a market that is rapidly growing. We look forward to working with Ba Huan’s management team to help implement new management practices, improve governance, and otherwise help take the company to the next stage of growth,” Ho noted.

vinacapital spends 325 million on egg and poultry firm ba huan
Poultry World forecasts great growth in both chicken and duck egg consumption in Vietnam

According to Poultry World, egg consumption is on the rise in Vietnam, with both chicken and duck eggs gaining popularity. Chicken consumption is also increasing, growing at an compound annual growth revenue (CAGR) of 8.6 per cent, according to DBS Bank, and local producers struggle to meet the demand.

By 2021, the average consumption of chicken is forecast to expand to nearly 17 kilogramme per year from around 8kg in 2015, driven by urbanisation and a growing middle class with greater disposable income. Additionally, poultry production continues to be dominated by small family farms, with limited resources to scale up.

Ba Huan JSC was founded in 2001, growing from a family business to become the leading supplier of pasteurised poultry eggs in the Vietnamese market. The company operates two fully enclosed industrial poultry farms, including a layer farm with over 1.5 million chickens for commercial egg production and a broiler farm with over 400,000 chickens for meat production.

Each day, Ba Huan supplies over 1.7 million eggs, delivers over 15,000 chickens, and processes over 25 tonnes of fresh poultry meat.

These farms are qualified for local and international food safety standards and practices, such as Hazard Analysis Critical Control Point (HACCP) and VietGap. They are also well-organised to ensure proper distance between sub-farms and equipped with semi-automated systems for feeding, watering, ventilation, and heating.

Each day, Ba Huan supplies over 1.7 million eggs, delivers over 15,000 chickens, and processes over 25 tonnes of fresh poultry meat.

Ba Huan’s products are distributed through both the general and modern trade channels, such as major grocery chains and major international fast food businesses via a comprehensive distribution network of more than 2,000 agents and points of sale throughout Vietnam.

vinacapital spends 325 million on egg and poultry firm ba huan VinaCapital injects $45 million into oil and power stocks

VinaCapital Vietnam Opportunity Fund has taken initiative to invest nearly $45 million in Binh Son Refining and Petrochemical Company and PetroVietnam Power Corporation (PV Power) ...

vinacapital spends 325 million on egg and poultry firm ba huan VinaCapital becomes strategic shareholder of Viglacera

By purchasing an additional five million shares in Viglacera Corporation JSC (Viglacera—Ticker VGC on HSX), VinaCapital now holds 5 per cent and became a major ...

vinacapital spends 325 million on egg and poultry firm ba huan VinaCapital follows up strategy by divesting Vina Square

VinaLand, the real estate arm of VinaCapital, has announced divesting its stake in the Vina Square project located in Ho Chi Minh City.

By Trang Nguyen

Based on MasterCMS Ultimate Edition Ver 2.8 2018