Dairy producer Yili's competition with peer Mengniu goes upscale
It is paying 4.6b yuan for a stake in China's largest organic milk producer China Shengmu Organic Milk
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Shanghai
INNER Mongolia Yili Industrial Group Co's competition with China Mengniu Dairy Co in the US$52 billion Chinese dairy market is going upscale, centring on a premium, organic segment that makes up just one per cent of the country's milk consumption.
Yili is paying 4.6 billion yuan (S$945 million) for 37 per cent of China Shengmu Organic Milk Ltd. The Hohhot, China-based company could lift its stake further, giving Yili majority control of the largest Chinese organic milk producer and the only one in the country certified to meet European standards.
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