RDIF and Vietnamese TH Group launch the construction of integrated dairy complex in Kaluga region

Press release, 07.09.2018

Kaluga region, September 7, 2018 − The ground-breaking ceremony was held to start the construction of integrated dairy complex in Kaluga region. Representatives of the Russian Direct Investment Fund (RDIF), the sovereign wealth fund of the Russian Federation, and TH Group, the largest Vietnamese agricultural conglomerate, took part in the ground-breaking ceremony to begin construction of integrated dairy complex in Kaluga region. The event was also attended by Nguyen Phu Chong, the Secretary General of the Central Committee of the Communist Party of Vietnam, Dmitry Patrushev, the Russian Minister of Agriculture, Anatoly Artamonov, the Governor of the Kaluga Region, Thai Huong, Founder of TH Group, and representatives of RDIF.

The investment totals $633 million, which is a largest single investment by a Vietnamese company in Russian agriculture. The funds will be spent on the construction of integrated facilities for the production of dairy products in Moscow and Kaluga regions. The complex will have a capacity of more than 300,000 tons of milk per year.

RDIF and TH Group plan to announce the completion of a deal to build integrated dairy complex in both Moscow and Kaluga regions by the end of 2018.

The launch of the first farm for the production of raw milk in the Volokolamsky district of Moscow region took place in Q1 2018. The launch of the remaining four dairy farms in Moscow and Kaluga regions is scheduled for 2019 and 2020. The facilities for the production of dairy products and a proprietary distribution network are expected to be launched in 2020. By 2025, the company plans to reach full production capacity and take a leading position in Russia in terms of the volume of raw milk production.

The project will utilize end-to-end milk processing technology, involving a complete production chain from growing fodder and milking herd to the production of raw milk and its processing into a wide range of final dairy products. The project provides innovative solutions for increasing the productivity of milking herd, as well as modern technological solutions, including automatic feeding and milking systems.

RDIF and TH Group are also considering construction of dairy plants in other regions of Russia as part of the partnership, including regions in the far east of the country.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), noted:
"RDIF’s partnership with leading Asian manufacturer TH Group will promote innovation in dairy production and have a positive impact on the development of the Russian dairy industry. Our joint investments have important social significance – the creation of new high-tech dairy plants will help to reduce the deficit of dairy products in the Russian market and provide consumers with high-quality domestic products."

Thai Huong, Founder of TH Group, said:
"TH produces agricultural products of international quality standards. The cooperation of RDIF and TH Group will make a significant contribution to the restructuring of Russian Federation agriculture, giving Russian consumers the most benefit, which are good and healthy products purely from nature from their own land, and to give the Russians the right to be proud of their land."

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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 operating under the TH brand. TH brand companies include: TH Milk Food, Dalat Milk, TH Schools, May Forester Company, Nghe An Sugar Company (NASU), BacABank, etc. TH’s food products originate from natural sources and have received many certificates and awards for their quality (within Vietnam and overseas). TH Milk Food JSC was established in 2009 by Ms. Thai Huong, described by America’s Forbes magazine as one of Asia’s most powerful businesswomen. This is the first company in the TH Group to invest in industrial dairy farms, modern dairy manufactures technology and distribution systems across the country. It currently operates more than 40% of Vietnam’s fresh milk market. 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 / Andrew Leach
Hudson Sandler
Tel: +44 (0) 20 7796 4133