Taizinai Group, the milk-based drinks manufacturer, announced it has raised a fund of $73 million in a private placement with three of the world's leading investment institutions. Of the total investment, $40 million is from Actis, $18 million from Morgan Stanley, and $15 million from Goldman Sachs.

After listing the firm will make a series of mergers and acquisitions, targeting not only domestic players but also overseas manufacturers. Taizinai plans to increase revenue from 1.8 billion yuan last year to 10 billion yuan in three years' time. By 2017, the company's revenue is expected to reach 100 billion yuan.

Established a decade ago, the Hunan-based firm leads China's lactobacillus dairy sector, accounting for 72.8 percent of the market share. It has maintained an annual growth of 60 to 80 percent over the past three years.

The lactobacillus dairy sector has a huge market potential in China, since the nutrition found in such drinks, when compared with fresh milk, is easier absorbed, especially by Asians. The firm recently invested "several billion yuan" in finalizing five manufacture bases in Beijing, Shanghai, Hunan, Sichuan and Hubei provinces.
 
Lactobacillus dairy products account for less than 5 percent of China's total dairy market, compared with about 30 percent in the United States and about 80 percent in Japan and Europe. Chin Bay Chong, managing partner of Actis Asia-Pacific, said Taizinai's leading position in China's lactobacillus dairy sector was the main attraction for Actis. The company has core technology, high brand operation ability and an efficient management team, all of which gave Actis immense confidence, said Chin. Domestic customers' desire for healthier products also indicates a bright future for the sector, Chin added.

China has more than 150 enterprises producing lactobacillus dairy products, seven of which have an annual output exceeding 10,000 tons.

Source:未知