Masan Group, one of Vietnam’s largest private companies, hasannounced that it had successfully purchased 99.99 percent of the stockin Sam Kim Co Ltd and renamed the company Masan Nutri-Science.
The acquisition has helped Masan Group to hold as much as 52 percentof the shares in Vietnam French Cattle Feed JSC (Proconco) and 70percent in Agro Nutrition Company (Anco).
With thepossession of a major stock in the two companies, Masan Group is showingits desire to be a leading platform to serve the growing animal feedsector.
It also nurtures the ambition of holding up to 50 percent of the market share by 2020.
Experts are confident in the group’s success in this field becauseProconco is the number one pig feed producer while Anco is the secondoverall animal feed player in Vietnam .
Besides,Masan Group has strong capacity to mobilise capital sources from bigforeign partners as well as advantages built on its past attainment inthe consumer goods sector.
The cattle-feed sectoralso pins hope on two other companies, namely Hung Vuong and Hoa Phat –which are expected together with Masan Group to create a strong domestictrio.
Hoa Phat entered the feed market in lastMarch by launching its animal feed subsidiary that has an annualcapacity of 300,000 tonnes per year and chartered capital of 300 billionVND (13.9 million USD). It aims to occupy 10 percent of the marketshare in the next five years.
Meanwhile, Hung Vuonghas joined the market since 2007. With its merger and acquisition (M&A) strategy, the company strives to hold more shares in smallcompanies such as Viet Thang (over 90 percent); Agifish (85 percent);and Sao Ta (over 51 percent).
The company looks toincrease cattle-feed production to 1.5-1.8 million tonnes per year by2018 and rake in 18-20 trillion VND in sales by 2020.
The ambitions of domestic firms are obvious, but to change the statusquo with foreign ones, which are limited in number but hold about 60percent of the market share, is not simple at all according to experts.
The animal feed market in Vietnam is growing rapidlywith the average growth of 10-13 percent annually. Vietnam currentlytops the Association of Southeast Asian Nations (ASEAN) and ranks 12 tharound the world in terms of producing industrial animal feed.
Experts are quite optimistic about the sector’s growth in 2015, whichstrives to record an increase of 5-5.6 percent in production value overthe previous year.
Currently, Vietnam needsabout 16 million tonnes of animal feed per year, worth about 6 billionUSD. It is forecast the figures will climb to 25-26 million tonnes peryear and will be worth tens of billions of dollars by 2020.-VNA
The acquisition has helped Masan Group to hold as much as 52 percentof the shares in Vietnam French Cattle Feed JSC (Proconco) and 70percent in Agro Nutrition Company (Anco).
With thepossession of a major stock in the two companies, Masan Group is showingits desire to be a leading platform to serve the growing animal feedsector.
It also nurtures the ambition of holding up to 50 percent of the market share by 2020.
Experts are confident in the group’s success in this field becauseProconco is the number one pig feed producer while Anco is the secondoverall animal feed player in Vietnam .
Besides,Masan Group has strong capacity to mobilise capital sources from bigforeign partners as well as advantages built on its past attainment inthe consumer goods sector.
The cattle-feed sectoralso pins hope on two other companies, namely Hung Vuong and Hoa Phat –which are expected together with Masan Group to create a strong domestictrio.
Hoa Phat entered the feed market in lastMarch by launching its animal feed subsidiary that has an annualcapacity of 300,000 tonnes per year and chartered capital of 300 billionVND (13.9 million USD). It aims to occupy 10 percent of the marketshare in the next five years.
Meanwhile, Hung Vuonghas joined the market since 2007. With its merger and acquisition (M&A) strategy, the company strives to hold more shares in smallcompanies such as Viet Thang (over 90 percent); Agifish (85 percent);and Sao Ta (over 51 percent).
The company looks toincrease cattle-feed production to 1.5-1.8 million tonnes per year by2018 and rake in 18-20 trillion VND in sales by 2020.
The ambitions of domestic firms are obvious, but to change the statusquo with foreign ones, which are limited in number but hold about 60percent of the market share, is not simple at all according to experts.
The animal feed market in Vietnam is growing rapidlywith the average growth of 10-13 percent annually. Vietnam currentlytops the Association of Southeast Asian Nations (ASEAN) and ranks 12 tharound the world in terms of producing industrial animal feed.
Experts are quite optimistic about the sector’s growth in 2015, whichstrives to record an increase of 5-5.6 percent in production value overthe previous year.
Currently, Vietnam needsabout 16 million tonnes of animal feed per year, worth about 6 billionUSD. It is forecast the figures will climb to 25-26 million tonnes peryear and will be worth tens of billions of dollars by 2020.-VNA
