Tiga Pilar plans to invest in Hanoimilk

INDONESIA’s Tiga Pilar Sejahtera Food is in negotiations to purchase one of Viet Nam’s dairy companies, said a VNS report. Tiga is a producer of biscuits and has investments in rice, noodles and palm oil. The company's total assets are currently at US$413.1 million.

The Asian Agribusiness noted the Indonesian company as reportedly investing $80 million in plans to expand its food business in Viet Nam and Malaysia.  Tiga has set its sights on Hanoimilk, a Vietnamese dairy producer whose sales performance used to be amongst the country’s best, but began to spiral following unsuccessful business strategies. Moreover, it had not been able to recover fully from the melamine scandal that hit the dairy industry several years ago.

According to reports in VNS, Hanoimilk’s net income in 2014 was lower by 5% compared to the previous year at VND222 billion ($10 million). But net profit dropped to VND3 billion ($140,000) in 2013 to VND161 million ($7,500) in 2014. Earnings per share are now at VND13.

If Tiga closes a deal with Hanoimilk, it is likely to push its annual profits up by $18.8-$23.5 million with the sale of Hanoimilk products in Indonesia.