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Who is our client

It is a co-investment with a Dutch enterprise, Royal Friesland Campina N.V., and IFC to acquire a 51 percent controlling stake in a large publically listed leading Food & Beverage company Engro Foods Limited in Pakistan. FMO has invested EUR 40 million.

Funding objective

In July 2016, the consortium, led by FrieslandCampina, signed a share purchase agreement with Engro Corporation Limited to acquire a 51 percent stake of Engro Foods Limited. Upon fulfilment of the regulatory requirements, the consortium closed the deal on 20 December 2016. The acquisition of Engro Foods, which is the second largest dairy company in Pakistan, enables FrieslandCampina to obtain a key position in Central Asia. Pakistan is the third largest milk producing country in the world with an annual production of 38 billion litres of milk and where only up to 10 percent of the produced milk is processed into high added value dairy products. FMO and IFC support FrieslandCampina in its objective to minimize malnutrition in Pakistan, one of the largely populated countries in the world (about 200 million people, 54 percent under 24 years of age), by developing and improving dairy based products.

Why we fund this project

Engro Foods Limited is the 2nd largest dairy producer in Pakistan and is a significant milk off-taker from the local dairy farmers. Reaching 150,000 dairy farmers in Pakistan, Engro Foods continuously seeks ways to improve opportunities for the farmers. For example, an Engro Milk Automation Network payment system received multiple local and international awards for its Inclusive Business Innovation. Another example is a program undertaken by the company to engage women in the dairy supply chain by training rural women as milk collection agents and livestock managers. The deal fits well within the strategy of FMO as it is a co-investment together with a large Dutch corporate in an Agricultural processing company in one of the poorest countries. Dairy is an important sector in the Netherlands with an export value of EUR 7.2 billion. Being the sixth largest dairy producer in the world, FrieslandCampina has built strong expertise in both milk procurement and manufacturing of high added value dairy products, such as packaged milk for a family’s daily consumption or specialized hypoallergenic infant formula. With the help of FMO’s and IFC’s emerging market knowledge and expertise, FrieslandCampina can now pass its standards and skills to the Pakistani market.

More investments

Date Total FMO financing
6/29/2016 EUR 12.50 MLN
Agribusiness, Food & Water
Signing date
Total FMO financing
EUR 27.50 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)