Granarolo gets €15m boost to develop Italian dairy products in neighboring countries

By Jim Cornall contact

- Last updated on GMT

Granarolo's plan up to 2019 includes expansion into neighboring markets.
Granarolo's plan up to 2019 includes expansion into neighboring markets.

Related tags: European union

Italian financial institution SIMEST, part of the CDP Group's exports and internationalization operations, is supporting the strategy of the Granarolo Group in Europe with a €15m ($18.4m) capital increase.

The 30% capital increase has been finalized for Granarolo France SAS, the company's main player in EU markets.

The operation is aimed at supporting the Granarolo Group's plan to expand into the French and neighboring markets by promoting the Italian milk production chain and product diversification.

Granarolo said the assistance will boost its growth in foreign markets, launched in 2011 with a series of acquisitions in France, Chile, Brazil and New Zealand.

Part of the 2016-2019 development plan also calls for new strategic moves in other European countries.

New product launches

CEO of SIMEST, Alessandra Ricci, said the backing will drive Granarolo’s development and help it win new slices of the French and European market, “where competition is fierce.”

Gianpiero Calzolari, chairman of the Granarolo Group, said France and neighboring countries are key markets where Granarolo is planning the side-by-side launch of a large selection of Italian-made products and innovative products that meet the specific needs of new consumer targets.

Last year, SACE, another financial part of CDP Group, also underwrote a bond issue for the Granarolo Group. The €60m ($36.8m) issue was underwritten in equal parts by CDP and by Fondo Sviluppo Export, the export development fund established by SACE, and the bond issue is also helping to finance Granarolo’s 2016-2019 business plan.

Related topics: Manufacturers, Emerging Markets

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