On April 7, 2022 in Hanoi, Vietnam Anise Cinnamon Production and Export Joint Stock Company (Vinasamex) and Americata Company signed and announced the sponsor to establish and operate Vinasamex in the US. At the same time, Vinasamex and Aura Capital signed a strategic partnership – IPO.
“The US is the most attractive consumer market on the planet. Conquering the US market is also an opportunity to become a global brand. For this reason, Americata attracts potential agricultural specialties from around the world to participate in the program “Conquer the US market with Americata. Vinasamex, is also the first Vietnamese enterprise selected by Americata,” said Americata’s representative.
Vietnam is one of the few countries possessing a very large area of cinnamon and anise in the world, with the output of cinnamon ranked third, anise ranked second (according to the World Spice Association). According to the General Department of Forestry, the cinnamon area in Vietnam is about 150,000 hectares, accounting for 17% of the global cinnamon area.
“Vietnam’s cinnamon bark reserve is estimated at 900,000 – 1,200,000 tons, the average harvest output is 70,000 – 80,000 tons/year. Vietnam’s anise export value in 2020 will reach 245.4 million USD, in 2021 it will reach 245.4 million USD. about $291.8 million”.
Data from the General Department of Forestry.
Vietnamese cinnamon products are widely consumed in markets such as the US, EU, Middle East, Japan, China, India… Particularly in India, 80% of the country’s imported cinnamon output comes from Vietnam. .
According to experts, star anise is not only a spice, but also used a lot in the food, pharmaceutical, and cosmetic industries, added to coffee, matcha, and other beverages.
In particular, the demand for cinnamon essential oil in the world is very large and is always at a level where supply cannot meet demand. The demand for cinnamon increased faster than the increase in global supply, which pushed the price of cinnamon higher and higher, especially from 2016 until now.
The latest analysis confirms that within the next 10 years, the world organic spice market will grow at least 4.6% per year, and reach a total value of 15 billion USD. Particularly for the cinnamon market, from now to 2025, the average growth rate will be 14% per year.
Vinasamex was established in 2012, initially mainly exporting raw commodities to India and Bangladesh and built a foothold in these markets.
After more than 10 years of making friends with thousands of cinnamon farmers, changing from awareness and daily habits in their daily life to popularizing organic standards for growing cinnamon and anise, now , Vinasamex is a supplier of ingredients for many world famous brands such as Bombay Sapphire (UK), Teeccino herbal tea (USA), Sujeonggwa cinnamon drink (Korea), waffle shop chain (USA) )…
Currently, the area of cinnamon and star anise that meets Vinasamex’s international organic standards is 4,200 hectares in three main raw materials areas: Yen Bai, Lang Son, and Lao Cai. Currently, each year, Vinasamex exports more than 1,300 tons of organic cinnamon and anise to high-end markets such as Europe, America, and Korea. The company’s revenue in 2021 will increase by 60% in 2020.
Currently, cinnamon farmers in Vietnam are selling dried cinnamon to traders at a popular price of about 50,000 VND/kg of dried cinnamon. Vinasamex cooperates to sign off-sale contracts with more than 2,115 farmer households that strictly follow the organic production process with many strict standards, the company’s raw material areas do not use chemical fertilizers and herbicides. , pesticides.
Because organic cinnamon must be processed strictly, Vinasamex buys fresh cinnamon, currently at the price of 27,000 VND/kg. On average 5 kg of fresh cinnamon for 1 kg of dried cinnamon, the company’s purchasing price for dried cinnamon is about 135-140 thousand VND/kg, 2.5 times higher than normal cinnamon.
Along with the existing cinnamon anise processing plant in Yen Bai province, Vinasamex is building two large capacity organic anise processing plants in Lao Cai and Lang Son.
In Lao Cai, is a 2.2 hectare factory with a processing capacity of 2,000 tons of fresh cinnamon per year, and a production line of 140 tons of cinnamon essential oil annually.
In Lang Son, is a 1.6 hectare factory with a designed capacity of 2,000 tons of cinnamon, 1,000 tons of star anise and 80 tons of star anise oil, 140 tons of cinnamon essential oil per year.
The next plan, Vinasamex will build another 10ha factory in Lao Cai with a capacity of up to 10,000 tons of cinnamon annually.
In order to increase investment capital in new factories, Vinasamex offers to sell 15% of its shares, with the officially valued value of VND 135 billion. Each investment rate is at least 1.5 billion VND.
With the above IPO roadmap and promising business results of Vinasamex in the coming years, the Company expects to create a value of more than VND 1,445 billion within the next 5 years, along with a dividend of nearly 83 billion was paid during the same period.
Source: vneconomy.vn
Source: Vietnam Insider