Hoa Phat is the next giant to decide to enter the agricultural field. Recently, this Group has decided to establish a 100% capital subsidiary to carry out livestock farming, food processing, animal feed processing and agriculture-related industries with charter capital. 300 billion VND.
Answering shareholders' questions about the reason for entering this very new field, at the General Meeting of Shareholders taking place this morning (March 31), Mr. Tran Dinh Long - Chairman of the Board of Directors of Hoa Phat said that food Livestock is an essential industry with a scale of about 200 trillion VND, larger than the steel industry, so with challenges come many development opportunities.
Talking about Hoa Phat's competitive advantage in this new industry, Chairman of the Board of Directors of Hoa Phat Group Tran Dinh Long said: "You don't have to be strong to enter. Even with the steel products of the past, after all, they were all new, Hoa Phat all started from zero.
“In 1999, when starting to produce construction steel, everyone in the steel industry knew a lot about the steel of Vietnam Steel Corporation, Viet Uc Steel..., no one knew what Hoa Phat was. People also said that Hoa Phat didn't know what to do. 10 out of 11 people said we were failures. Everyone can see how Hoa Phat is today."
Regarding production and business results, at the end of 2014, the whole Group achieved 25,852 billion VND in revenue and 3,250 billion VND in profit after tax, equal to 112% and 148% of the plan. With the achieved results, Hoa Phat has grown strongly compared to 2013 in revenue and profit by 35% and 62% respectively.
The implementation is only in the research stage with a lot of caution, but if there is a good opportunity, this industry will be developed into a key industry of the Group with the goal of having 1 million tons of animal feed by 2020. , 1 million pigs, revenue reached 15,000-20,000 billion VND, equivalent to the current steel industry.
"19 years ago, when entering the steel industry, many people thought "Hoa Phat knows what to do" but sometimes it is not necessary to have strengths to do it. For an open economy like Vietnam, nothing is perfect. Traditional, most have to start from scratch. If you're afraid of competition, there's nothing to do. However, we will only expand and expand if it is truly effective," Mr. Long emphasize.
Before that, Mr. Duc was equally self-conscious when he decided to invest trillions of billions to raise cows. With the motto of diversifying business lines to spread risks, "taking the short term to grow long" from short-term crops, by mid-2014, HAGL had about 44,500 hectares of rubber, 8,000 hectares of sugar cane, and oil palm. 17,300 hectares are planted and corn is about 5,000 hectares.
Knowing how to take advantage of crops as food, last year this businessman embarked on a plan to develop a herd of 100,000 cows.
Chairman of HAGL Group Doan Nguyen Duc said: "HAGL has built an advanced cow farm model and created a high-quality Australian beef product line in Attapeu"
In 2014, HAGL raised 10,000 cows in Attapeu. According to the plan, in 2015, HAGL will increase the total herd of Australian cows in Laos to 80,000 cows. In the future, cow farming will become a key industry of the Group."
HAGL currently has the advantage of holding 100,000 hectares of HAGL land, of which only 70,000 hectares are for production, the remaining 30,000 hectares are for growing grass, convenient for applying high technology in livestock farming. "In addition, we also have 2,000 agricultural engineers, enough strength to be able to develop the herd of cows to 300,000 cows, not stopping at 236,000 cows like this project," Mr. Duc said.
HAGL's dairy and beef cattle project with a capital of 6,300 billion VND, is divided into 2 investment phases and completed in 2017.
The total herd of beef and dairy cows is expected to be 236,000. Of which, there are 120,000 dairy cows and 116,000 beef cows.
Stating that, with cheap inputs thanks to taking advantage of available advantages, the output will also be very cheap, possibly up to half or one-third cheaper than the market, Mr. Duc affirmed that raising cows brings revenue to HAGL. very big. Cow manure alone helps the unit save over 300 billion per year. And in 2015, the beef cattle project will bring profits to the group of 30-50 million USD.
In mid-June 2014, the first herd of beef cattle was imported by Duc to the farm in Gia Lai.
Earlier this year, HAGL beef was available on the market, through processor Vissan. HAGL's dairy products are also expected to launch later this year.
Nam Nam (General)