RDIF and partners announce the investment in dairy production in Russia

Press-release, 24.05.2018

Saint Petersburg, May 24, 2018 – The Russian Direct Investment Fund (RDIF, the sovereign wealth fund of the Russian Federation) and Vietnam’s largest agricultural conglomerate TH Group have agreed to construct integrated dairy production facilities in the Kaluga and Moscow regions with a total investment of $633m. The corresponding investment agreement was announced at the Saint Petersburg International Economic Forum today.

The agreement covers the construction of two milk-processing facilities, whose combined total capacity will reach 300 thousand tonnes per year. The total number of cows is expected to reach 45 thousand. The production is expected to begin in Q4 2018, the construction of all the complexes is expected to take three years. The project also includes the creation of a company distribution network that will sell products manufactured at the complexes.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:

“The Russian dairy industry is not able to fully meet current domestic demand for dairy products. There is particularly low availability of dairy products in the Moscow region. We believe in the success of our joint project with TH Group, which will provide the Russian population with high-quality domestic dairy products and reduce dependence on imports. This is of particular importance in the face of growing domestic demand for dairy products.”

Ms Thai Huong, Founder of TH Group, commented:

“I am really pleased to cooperate with RDIF in pursuing investment in dairy industry of Russia in general and in Moscow and Kaluga regions in particular. With my big love for Russia, TH Group is investing with two key missions: to open new strategic market to support global expansion plans of TH Group and to show Vietnamese investors the potential of the Russian market. In Vietnam, TH has invested in dairy farming and already in five years achieved 45,000 of total herd; company won the title of Asia’s largest hi-tech dairy farm and achieved success in contributing to modernization of the dairy industry in Vietnam. In Russia, where the demand for milk is very high, we have an explicit roadmap; we have stepped in here with the plans to invest up to US$2.7 billion. TH Group aims to provide the world’s best quality dairy products to Russian consumers, contribute to public health and “True Happiness”.”

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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru

TH Group - is a group of companies doing their business in TH brand. Our group of companies includes: TH Milk Food, Dalat Milk, TH Schools, May Forester Company, Nghe An Sugar Company (NASU), BacABank, etc. TH’s green food products are of natural sources and receive many certificates and awards (within Vietnam and overseas) for their quality. TH Milk Food JSC was established in 2009 by Ms. Thai Huong,one of Asia’s most powerful businesswomen based on US’ Forbes magazine. This is the first company in the TH Group with the task of investment in industrial dairy farms, modern technology of dairy manufactures and distribution systems across the country, currently occupies more than 40% of fresh milk market share in Vietnam. In 2017, TH Milk Food produced 264 million liters of milk and dairy products.

For additional information contact:

Arseniy Palagin
Russian Direct Investment Fund
Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

Andrew Hayes / Yulianna Vilkos
Hudson Sandler
Tel: +44 (0) 20 7796 4133