US private equity firm General Atlantic has invested USD 130 million in PT Cisarua Mountain Dairy Tbk, an Indonesian dairy and food products company. Cimory has been in business for over 20 years and has become one of the leading dairy and food product brands in Indonesia. It is known for producing premium milk and yogurt products, as well as a range of other food, including sausages and chicken, under the “Kanzler” brand.
The investment is expected to help Cimory expand its operations, including developing and innovating new products, strengthening its distribution network, and undertaking digital marketing to increase its market share in Indonesia. Cimory currently operates several dairy farms and processing facilities in the country, as well as a network of retail stores and restaurants. With General Atlantic’s support, the company plans to open more retail outlets and expand its production capacity.
Demand for dairy in Indonesia has been growing in recent years. As the country’s middle class has expanded, there has been an increase in demand for higher-quality, more nutritious food products, including dairy products. However, the country’s domestic dairy industry is still relatively small, so much of the demand is currently being met by imports.
(Sources: USDA, Deal Street Asia)