Local conglomerate Capital Diamond Star Group Ltd (CDSG) and Mitsubishi Corp have formed a joint venture to engage in food manufacturing and distribution businesses throughout Myanmar and regionally, the firms announced.
Mitsubishi will acquire up to 30 percent equity stake in existing CDSG businesses to form the joint venture, Lluvia Limited.
The joint venture company will leverage the expertise and experience of CDSG and Mitsubishi Corp, the companies said in a joint statement.
Lluvia aims to invest over $200 million over the next three years in various businesses across the food value chain in Myanmar, they said.
CDSG is a leading food and FMCG (Fast Moving Consumer Goods) player in Myanmar with brands like Premier coffee, Premier milk powder, Tea Master tea-mix, Blue Rocket wheat flour, and Diamond Star wheat flour.
In addition to being a top supplier of wheat flour and instant beverages, CDSG is also involved in agricultural commodity trading, fertiliser and agro chemicals distribution, and retail businesses.
Lluvia is the current operating company for CDSG’s food sector businesses including wheat flour and beverages.
CDSG said the investments Lluvia intends to make across the food value chain in Myanmar will “significantly benefit the country’s food and agriculture industries”.
It said Lluvia aims to work with farmers to facilitate access to capital and enhance farming techniques through knowledge transfer from Mitsubishi Corp and its network of partners.
CDSG added that Lluvia will also play a role in connecting the farmers to regional and international markets. Lluvia will contribute to better food safety through technology transfer and help reduce Myanmar’s reliance on imports through local production of materials, it added.
“Lluvia aims to expand aggressively in the region and aims to be one of Myanmar’s first homegrown regional companies with a view towards being one of the leading food companies in Asia,” the firms said.