Summary of Proposed Investment
Project Number
8971
Company Name
Grupo Industrial Ayvi, S.A. de C.V.
Date SPI Disclosed
May 11, 1998
Country
Mexico
Industry
Agribusiness and Forestry
Status
Completed
Sector
Poultry Farming
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Jun 24, 1998
Signed : Nov 24, 1998
Invested : Sep 17, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Mexico – Grupo Ayvi |
| Region | Latin America and the Caribbean |
| Sector | Food and Agribusiness |
Project No008971
Projected Board DateJune 16, 1998
Company NameAyvi S.A.
Technical Partner and/or Major Shareholders
Grupo Ayvi is composed of six legally separate units with cross ownership among themselves: a) Ayvi S.A, a meat distribution company; b) Empacadora Y Beneficiadora de Carnes S.A., a poultry slaughterhouse; c)Fomento Agropecuario Y Comercial S.A., a broiler growing company; d)Pollitos Nortenos S.A., a hatchery company; e)IDEAMEX S.A., a producer of beef and chicken snacks; and f) Inmobiliaria Saviga S.A., a real estate company. The group is controlled by Santiago Villarreal Garcia, a Mexican citizen, who holds 90% of the group''s flagship unit Ayvi S.A. and the majority of the other companies. His four sons, Santiago, Eduardo, Fernando and Jorge Villarreal Ayala hold the remaining shares.
Project Cost Including proposed IFC investment
The three-year investment program is estimated to cost US$20.5 million, of which IFC is considering a US$10 million ‘A’ loan.
Location of project and Description of site
The company is located in Monterrey in the state of Nuevo Leon in Northern Mexico. All its farms and production plants are located within the State of Nuevo Leon; in addition, the company has twelve distribution centers in ten Mexican states.
Description of Company and Purpose of Project
Grupo Ayvi is an integrated small poultry company slaughtering about 14.4 million broilers p.a. representing about 2% of the total Mexican poultry market. The Company has requested IFC''s assistance to undertake an US$18.2 million expansion, modernization and debt consolidation program. Grupo Ayvi is an SME (small and medium sized enterprise) company that needs IFC’s assistance to strengthen its balance sheet by restructuring its debt while providing additional investments in fixed assets to improve its competitiveness and prosper under NAFTA. IFC will provide reasonably priced term financing to a small but promising player in the Mexican poultry sector that can benefit from IFC’s expertise in the sector. IFC’s investment will also bring the Company’s environmental standards to required World Bank levels.
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. The review of the project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment staff. The following potential environmental, health and safety impacts of the project were analyzed: air emissions and wastewater effluents; solid waste management and disposal; handling and storage of hazardous materials; use of CFCs in refrigeration equipment; hygiene practices in all facilities; fire protection and emergency response; and general worker health and safety. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Grupo Ayvi’s proposed project will meet World Bank environmental, health and safety policies and guidelines and requirements of the Government of Mexico.
The is from the Public Information Center.
| Date SPI sent to PIC | May 11, 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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