March 30, 2015
Capital Diamond Star Group Limited
Mitsubishi Corporation

PRESS RELEASE

Capital Diamond Star Group and Mitsubishi Corporation to form Food Manufacturing and Distribution Joint Venture

Highlights

  • Capital Diamond Star Group Limited (CDSG) is a market leader in Food and FMCG businesses that include many well-known brands such as Premier™ coffee, Premier™ milk powder, Tea Master™ tea-mix, Blue Rocket™ wheat flour, and Diamond Star™ wheat flour.
  • Mitsubishi Corporation (Mitsubishi) is a global integrated business enterprise based in Japan.
  • Mitsubishi Corporation will acquire up to 30% equity stake in existing CDSG businesses to form a joint venture with CDSG.
  • The joint venture company, namely Lluvia Limited (Lluvia), will leverage the expertise and experience of CDSG and Mitsubishi Corporation.
  • Lluvia aims to invest over US$ 200,000,000 (USD 200 million) over the next 3 years in various businesses across the food value chain to contribute to the development of the food industry in Myanmar.
  • Benefits to the local food industry and farmers include better access to capital, connectivity to international markets, enhanced food safety through technology transfer, and the substitution of imported goods with locally produced ingredients.
  • Lluvia will leverage Mitsubishi Corporation’s international network to expand aggressively in the region and aims to be one of Myanmar’s first homegrown regional companies.

YANGON, MYANMAR; TOKYO, JAPAN – Capital Diamond Star Group Limited (CDSG) and Mitsubishi Corporation (Mitsubishi) are pleased to announce the formation of a Joint Venture, Lluvia Limited (Lluvia) to engage in food manufacturing and distribution businesses throughout Myanmar and regionally.

CDSG is one of Myanmar’s most respected and prominent conglomerates. It is a leader in the Food and FMCG (Fast Moving Consumer Goods) businesses in Myanmar. In addition to being a top supplier of wheat flour and instant beverages, CDSG is also a major player in agricultural commodity trading, fertilizer and agro chemicals distribution, and retail businesses.

Mitsubishi Corporation is a global integrated business enterprise based in Japan with a long history of conducting food related businesses from global raw material sourcing to distribution and retail.

Lluvia is the current operating company for CDSG’s food sector businesses including wheat flour and beverages. CDSG has accepted an equity investment from Mitsubishi Corporation into Lluvia and plans to invest over US$200 million over the next 3 years in existing and new businesses throughout the food value chain in Myanmar.

The investments Lluvia intends to make across the food value chain in Myanmar will significantly benefit the country’s food and agriculture industries. In the upstream activities, Lluvia intends to work closely with farmers to facilitate better access to capital and enhance their farming techniques through knowledge transfer from Mitsubishi Corporation and its network of partners. Lluvia will also play a role in connecting the farmers to regional and international markets. In the downstream activities, Lluvia will also contribute to better food safety through technology transfer and help reduce Myanmar’s reliance on imports through local production of ingredients.

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.

FACT SHEET

Lluvia’s flour milling facilities in Yangon, Myanmar

Premier Coffee and other products

Capital Diamond Star Group Limited

Address : No.9, Yaw Min Gyi Street, Yaw Min Gyi Quarter, Dagon Township, Yangon, Myanmar
Founded : 1960
Scope of business : CDSG is engaged in a number of different sectors in Myanmar. CDSG’s business activities include: food manufacturing and distribution; agribusiness; retail; real estate development; construction; pharmaceutical; financial services; automotive; and telecom services.
No. of employees : 6,500 (consolidated March 2015)
Representative : Ko Ko Gyi, Group Managing Director

Mitsubishi Corporation

Address : 2-3-1 Marunouchi, Chiyoda-ku, Tokyo, Japan
Founded : 1950
Scope of business : Mitsubishi is active in a wide variety of activities on a global scale. Mitsubishi’s business activities include: global environmental and infrastructure; industrial finance; logistics and development; energy; metals; machinery; chemicals; living essentials; and business services.
No. of employees : 68,383 (consolidated March 2014)
Representative : Ken Kobayashi, President and CEO

Inquiries

Capital Diamond Star Group Limited (www.cdsg.com.mm)

Myanmar: Yu Darli Tun (959 310 99 249)

English: Yu Darli Tun (959 310 99 249)

Email:corporate@cdsg.com.mm

Mitsubishi Corporation

Telephone:+81-3-3210-2171 / Facsimile:+81-3-5252-7705
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