'Banh bao' is a Vietnamese term for steamed pork buns.
KIDO released its resolution on the merger and acquisition (M&A) deal on Wednesday.
The M&A deal is part of KIDO’s key business strategies to expand the portfolio of food products and become one of Vietnam’s leading essential food suppliers, said Tran Le Nguyen, CEO of KIDO.
The company looks to earn VND2 trillion (US$85.3 million) in revenue and VND200 billion ($8.5 million) in profit from the Tho Phat buns and other cakes in 2023.
The earnings will significantly contribute to the group’s total revenue and project this year.
The Tho Phat bun brand will quickly tap the markets of the northern and central regions and the global market thanks to KIDO’s distribution systems, which comprise 450,000 selling points of dried products and 120,000 selling venues of cold food, Nguyen said.
Tho Phat is a leading 'banh bao' producing brand in Vietnam, with the buns being sold at 4,000 wet markets, stores, grocery stores, and supermarkets.
The brand is said to have changed the traditional bun market, making the food, which is mainly used for breakfast and sold by street vendors, available at supermarkets and grocery stores.
Tho Phat has produced various kinds of buns such as sweet buns, meat buns, vegan buns, buns with no fillings, and dim sum and 'banh gio' (dumplings in banana leaves) as well.
The Tho Phat factory covers over 22,000 square meters of land in Ho Chi Minh City, with an annual capacity of 10,000 metric tons.
In line with the Vietnamese business law, an investor who owns a stake of over 51 percent in a company can gain control of it.
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