The food holding "Magnit", which is developing its own production together with a chain of stores, may start growing potatoes. The company applied to the FAS for the purchase of an enterprise in the Lipetsk region.
JSC "Tander", a structure of the holding "Magnit" - one of the largest retailers in Russia, has filed an application for the purchase of 99,9% of LLC "Moscow on Don", according to the notification of the Federal Antimonopoly Service (FAS). The petition was filed on May 31.
"Moscow on Don" grows "on an industrial scale" potatoes and other vegetables, including carrots, green and onions, says the website of the enterprise, which is part of the Malino group. "Moscow on Don" is located in the Lipetsk region, 520 hectares are allocated for potato growing, 180 hectares for vegetables. Carrots grown by "Moscow on Don" are used in the preparation of baby food and juices, and potatoes are supplied for wholesale and for the production of Lay's chips (brand owner - PepsiCo).
According to SPARK-Interfax, 100% of Moscow on Don belongs to Sergei Lupekhin, who is the main owner of the Malino group (50,79%). In 2015, the revenue of "Moscow on Don" amounted to 188 million rubles, net profit - 815 thousand rubles.
Representatives of "Magnit" and "Malino" were unable to promptly respond to a request from RBC about the terms of the deal.
Such an enterprise can supply about 25 thousand tons of potatoes per year, says Andrei Sizov, director of the Sovekon analytical center. According to him, large enterprises in the industry produce an order of magnitude more, and small-scale production "Moscow on Don" will not be able to fully meet the needs of the network. Now "Magnit" imports potatoes, including from Syria.
"Magnit" is probably only looking at such a business, Sizov suggests. In general, according to him, now this industry is low-consolidated and has all the prospects for consolidation, including due to the arrival of new players such as Magnit.
Magnit is the industry leader in terms of the number of stores: at the end of March 2017, the company had 14 thousand points. Of these, 10,5 thousand are in the “convenience store” format, 237 hypermarkets, 194 “Magnit Family” supermarkets and 3,1 thousand drogerie stores. Net profit of Magnit (which manages hypermarkets of the same name, convenience stores and drogeries) decreased in the first quarter of 2017 by 8,5% year-on-year to RUB 7,54 billion. The company's net profit has been declining for several quarters in a row. At the end of 2016, for the first time in history, Magnit showed a reduction in annual profit.
Back in 2014, the main owner of Magnit, Sergei Galitsky, announced that the chain plans to open 40 new food production facilities in Russia. In February 2016, Magnit announced that it was ready to invest about 52 billion rubles in its own production. in the next five to six years. Since 2012, the structure of "Magnit" includes the greenhouse complex "Green Line" on 80 hectares, where cucumbers, herbs, tomatoes are grown, and it is planned to grow champignons. In addition, Magnit is developing TD-Holding, which produces products under the retailer's own trademark. At the end of 2016, Magnit also established the Kuban Confectioner and bakery manufacturers and the Kuban Bakery Plant.
Author: Anastasia Demidova
Read more at RBC: http://www.rbc.ru/