The Russian Direct Investment Fund (RDIF)
, Russia's sovereign wealth fund, and Italy's Barilla Group
, one of the leading global producers of pasta and bakery products, announce plans of investing jointly over EUR 100mn to expand the company's business in Russia.
The investment program will enable Barilla's Russian subsidiary – Barilla Rus – to significantly increase scale of its operations and level of production localization on the local market. As a first step, it is planned to build the most technologically advanced mill for the production of durum wheat semolina in Eastern Europe, and subsequently – a new semolina pasta plant in the Moscow region.
Financing for the project will be provided in tranches, with the first investment already completed by the parties. RDIF and Barilla partnership will be a relevant enabler to keep on developing Barilla's Russian business in the course of 2021-2023.
Barilla's strategy is focused on expanding the business and increasing market share in Russia and the construction of new facilities will help Barilla achieve its growth targets in Russia in the coming years.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund, said:
"Our joint investment in Barilla Rus is an important step towards resuming economic activity in Russia suspended by the coronavirus pandemic. It will also add to the successful economic cooperation between Russia and Italy. Barilla has been outperforming the market in Russia more than twice in recent years, its high quality products are well known globally, and RDIF aims to support their localization in Russia via construction of new production facilities. Thanks to our joint project the company will introduce its leading production standards and create new jobs in the Moscow region".
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF's management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 80 projects with foreign partners totaling more than RUB 1.9tn and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 800,000 people and generate revenues which equate to more than 6% of Russia's GDP. RDIF has established joint strategic partnerships with leading international co-investors from more than 18 countries that total more than $40bn. Further information can be found at www.rdif.ru
Barilla Group is a family company, not listed on the stock exchange, chaired by brothers Guido, Luca and Paolo Barilla. It was founded by their great-grandfather, Pietro Barilla, who opened a bakery in Parma in 1877. Now, Barilla is famous in Italy and throughout the world for the excellence of its food products. With its brands – Barilla, Mulino Bianco, Pan di Stelle, Gran Cereale, Harrys, Pavesi, Wasa, Filiz, Yemina and Vesta, Misko, Voiello and Cucina Barilla – it promotes a tasty, joyful and healthy diet, inspired by the Mediterranean Diet and the Italian lifestyle. When Pietro opened his store more than 140 years ago, his overriding aim was to make good food. Today, that principle has become Barilla's way of doing business: "Good for You, Good for the Planet," a slogan that expresses the daily commitment of the over 8,000 people who work for the company, and of a supply chain that shares its values and passion for quality. "Good for You" means constantly improving the product offering, encouraging the adoption of healthy lifestyles and facilitating people's access to food. "Good for the Planet" means promoting sustainable supply chains and reducing CO2 emissions and water consumption. To learn more: www.barillagroup.com
; Twitter: @barillagroup