Summary of Proposed Investment
Project Number
8267
Company Name
Gloria S.A.
Date SPI Disclosed
Oct 19, 1998
Country
Peru
Industry
Agribusiness and Forestry
Status
Completed
Sector
Dairy Products
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Apr 21, 1999
Signed : Jul 21, 1999
Invested : Sep 16, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Peru – Milkito |
| Region | Latin America & the Caribbean |
| Sector |
Projected Board DateNovember 30, 1998
Company NameAgraria El Escorial
Technical Partner and/or Major Shareholders
Agraria El Escorial S.A. (Agraria) is one of the Peru’s most important agribusiness companies in the processing of dairy and fruit juice products. With sixteen years of experience in the dairy and fruit juice markets, Agraria is the undisputed leader in these markets with a market share of 56% and 46% respectively. Agraria’s dairy operations are semi-integrated having its own dairy farm (1800 heads), a processing plant and its own distribution network. The company also buys raw milk from farmers in the Lima region. Semi-integration is also the case for the fruit juice side of the business where the company buys its pulp and fruit juices from third parties. Since 1991, Agraria has been consecutively recognized, by Peru’s Agricultural University, for the quality of its production and its dairy cattle management. A recent market survey by the respected Peruvian newspaper “El Comercio” ranked the company’s “Milkito” brand among the ten most recognized brands in Peru.
Project Cost Including proposed IFC investment
IFC is considering a US$7 million investment in the form of an A loan and quasi-equity.
Location of project and Description of site
The Company is located in Canete, a rural region 60 Km south of Lima. The project includes the acquisition and refurbishing of a dairy plant in Jequetepe, a northern city considered one of Peru’s most important dairy areas.
Description of Company and Purpose of Project
To complement its line of yogurts and fruit juices, Agraria wants to introduce UHT dairy/juice products which are rapidly gaining acceptance with the Peruvian consumers in view of their unique properties such as convenient packaging, no need for refrigeration and an extended shelf life. The Company is positioned to grab a large share of this market in view of its premium and well recognized brand (Milkito) and its established sales and distribution network throughout Peru. The Company is planning to buy an existing dairy operation with UHT equipment. IFC financing will be used toward the rehabilitation of the facilities, the purchase of new packaging equipment, and bringing the Company’s environmental practices to World Bank standards. A portion of IFC’s financing will be used to restructure the Company’s liabilities and reduce its financial costs.
Environmental Category and Issues
This is a category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Key environmental, occupational health and safety issues which were of potential concern in this project included: environmental conditions at the existing and new sites and any potential site environmental liabilities; air and water emissions and solid wastes from existing and proposed plants; hazardous materials handling and storage; plant hygiene practices; and general worker health and safety. The sponsor has provided detailed reports on the environmental and health and safety aspects of their existing operations. The sites have all been used for agriculture or agricultural processing, and none of the sites has any environmental liabilities. Air emissions from the small boilers at the plants will be minor and within World Bank Group limits. Wastewater treatment plants are being designed to meet World Bank Group guidelines and will be implemented according to an agreed schedule. Organic solid wastes are all recycled or reused. CFC refrigerants will be phased out as required under the terms of the Montreal Protocol. Hygienic practices are incorporated throughout the plants, and the company has a comprehensive worker health and safety program in place. All plants will fully meet the applicable World Bank Group health and safety guidelines.
The is from the InfoShop.
| Host country location of environmental documents |
Date SPI sent to InfoShop October 19, 1998
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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