Agri: Invigor wins $25m sales deal in India; shares up 25pc
Food & Agriculture
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Less than a month after acquiring Sun Asia, Invigor Group (ASX:IVO) has announced a $25m sales agreement with Indian agriculture giant Mayuresh Protenz.
While Mayuresh’s core business is real estate, it also runs a venture capital arm and an agriculture business that focuses on pulses and grains.
The latter focuses on importing proteins in bulk and then sorting, grading and purifying them before delivering final products. While the majority of Mayuresh’s proteins are sourced locally, it chose Sun Asia as its latest supplier.
Sun Asia will ship the first $2m of produce in the coming months and will be paid before it is shipped.
The news moved Invigor shares up 25 per cent to 0.5c on Wednesday morning.
Invigor CEO Gary Cohen attributed the contract win to Sun Asia’s relationship with Australian producers and Invigor’s technology.
Invigor’s solutions help businesses use data to identify business insights and ways to engage and reward customers. Among its clients are the Good Guys, Supa Centre (Moore Park), Stockland and Zoos Victoria.
Cohen called Mayuresh, “an excellent partner that gives us wide distribution channels into multiple Asian markets. They are a sophisticated food supplier that see value in our back-end capabilities and payment channels”.
Sun Asia managing director Geoff Shannon revealed Mayuresh did several months of due diligence on the company before making a commitment. He also outlined the hard work ahead of the company.
“Seamless delivery of [the] product is the key to expanding this agreement beyond its current A$25m annualised value. We have every confidence that we can achieve this,” he said.
Murray River Organics Group (ASX:MRG) has announced its own partnership with an existing customer in China’s food industry. The company declared it was evidence is growth campaign was, “starting to deliver”. It predicted it would be worth more than $6.5m over the next three years. CEO Valentina Tripp said “this partnership is an important milestone in further expanding our footprint into China and in executing our broader export strategy”.
Increased milk prices will be a good thing for Australian Dairy Nutritionals Group (ASX:AHF). This morning the company announced a price increase in its milk supplied to Australian Consolidated Milk. AHF said it would boost EBITDA by at least $1.1m, although they did not say how much prices would rise on a per litre basis. AHF also said its infant formula plant was still on schedule to arrive in Australia next month.