Growtheum Capital Partners (GCP), a private equity firm headquartered in Singapore, has revealed its investment in KIN Dairy, an Indonesian dairy product manufacturer, after successfully raising $567 million for its inaugural fund.
The specific financial details of the transaction have not been disclosed; however, insiders with knowledge of the situation suggest that the investment is approximately valued at $70 million.
Having made this investment, Growtheum has joined Mitsui & Co as a supporter of KIN Dairy’s ambitions to achieve market leadership within Indonesia’s dairy industry.
Earlier this year, Growtheum injected approximately $100 million into International Dairy Products (IDP) in Vietnam.
KIN Dairy, Growtheum’s latest dairy sector investment, stands out as a vertically integrated dairy manufacturer specializing in the production of yogurt and milk products under the KIN brand. Moreover, as per the announcement, it proudly operates one of the largest and only A2-cow dairy farms in Indonesia.
Nestled at an elevation of 1,350 meters above sea level in the mountainous expanse of West Java Island, this farm spans across 80 hectares and boasts state-of-the-art milking, feeding, and processing technologies.
“With the company’s relentless commitment to product innovation, nutritional values, and best-quality ingredients, KIN Dairy represents an attractive opportunity for GCP to realise the market opportunity,” said Kusnadi Pradinata, senior managing director at the PE firm.
Warren Choo, the President Director of KIN Dairy, expressed that the impressive track record of Growtheum Capital Partners in working alongside management teams to foster the growth and development of consumer companies in Southeast Asia aligns perfectly with the interests of the Indonesian manufacturer.
Approximately a month following the successful closure of Growtheum’s inaugural fund at $567 million, a figure slightly below its initial target range of $600 million to $800 million, this investment in KIN Dairy has been announced.
Growtheum SEA Fund I, focused on investments in Southeast Asia and India, successfully secured commitments from approximately 40 limited partners (LPs), including notable institutional investors like the World Bank’s International Finance Corporation (IFC) and the Asian Development Bank (ADB). The fund has already executed a series of investments as part of its deployment strategy.
Growtheum has made investments in several Indonesian companies, including the e-grocery platform AlloFresh, the digital lender Bank Allo, the hospital group Mitra Plumbon Healthcare Group, and IDP, among others.
The firm typically invests amounts ranging from $50 million to $350 million. While it tends to avoid smaller deals, Growtheum’s Managing Partner Amit Kunal mentioned earlier that it can adapt and be opportunistic with its investment sizes when necessary.