Vinamilk completes Angkormilk takeover

By Jim Cornall contact

- Last updated on GMT

Vinamilk has completed the takeover of Angkormilk in Cambodia by purchasing all remaining shares. Last year, Angkormilk opened a milk manufacturing plant in Phnom Penh. Pic: ©Vinamilk
Vinamilk has completed the takeover of Angkormilk in Cambodia by purchasing all remaining shares. Last year, Angkormilk opened a milk manufacturing plant in Phnom Penh. Pic: ©Vinamilk
Vietnamese dairy Vinamilk has bought all of the remaining shares of Cambodian milk producer Angkor Dairy Products Co. Limited (Angkormilk).

In a disclosure document on the State Securities Commission and the Ho Chi Minh Stock Exchange portals, Vinamilk said its total investment capital in Angkormilk had risen from $10.2m to $21m.

The increased amount was to purchase the remaining Angkormilk shares.

In July 2013, Vinamilk, together with BPC Trading Co., Ltd. (Vinamilk’s local distributor and strategic partner) signed a joint venture agreement regulating the formation of Angkormilk, with 49% of shares held by BPC and 51% by Vinamilk. 

Angkor Dairy Factory

Last year, the Angkor Dairy Factory in Phnom Penh was inaugurated.

Phat Bun, chairman of BPC, said Angkor Dairy Products Co., Ltd was proud to be the first and only company in Cambodia obtaining a milk manufacturing plant.

Located at Phnom Penh Special Economic Zone, covering a total area of nearly 30,000sqm, Angkor Dairy Factory was constructed within a year with a total investment of $23m.

During phase 1, the factory has an annual capacity of 19m liters of liquid milk, 64m cups of yogurt and 80m tins of sweetened condensed milk per year.

Phase 2, which is scheduled for 2024, will see the factory push its capacity to 38m liters of liquid milk and 192m cups of yogurt per year to fulfil the rising demand of local and regional consumers.

Angkor Dairy Factory has adopted Tetra Pak integration technologies from handling raw materials to processing and packaging.

angkormilk
The Angkormilk plant in Phnom Penh. Pic:©Vinamilk

The manufacturing process is controlled by an automatic integrated system to optimally control the entire processing area.

Overseas expansion

Vinamilk has been increasing its efforts to expand outside of Vietnam.  In January, it entered into a strategic relationship with Bangladeshi distributor Bigbiz to introduce its products to Bangladesh, and it is also eyeing markets in Thailand and Myanmar.

In Myanmar, Vinamilk introduced its products through a partnership with Synchro World.

Elsewhere, Vinamilk has invested in the New Zealand-based Miraka (23.8%) factory, and in the US, it owns a 100% stake in Driftwood Dairy Factory - the largest dairy supplier in Los Angeles, California.

The company has also invested in Poland, which it says is the gateway to access the European market.

Related topics: Manufacturers, Emerging Markets, Fresh Milk

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