Invigor’s Sun Asia Group collars $25mpa Australian produce supply agreement
Invigor Group’s subsidiary Sun Asia will now supply Australian produce into Asia under an agreement worth $25 million annually.
Data and analytics platform provider Invigor Group’s (ASX: IVO) subsidiary Sun Asia Group has signed an agreement with India’s Mayuresh Protenz to supply Australian produce into Asia, with the contract valued at $25 million per annum.
Under the agreement, Sun Asia has already been contracted to supply the first $2 million-worth of produce, with delivery scheduled in the coming months, and payment to occur prior to shipment.
“This sales agreement is a pleasing start to Sun Asia’s farm-to-plate growth strategy and Mayuresh is an excellent partner that gives us wide distribution channels into multiple Asian markets,” Invigor chief executive officer Gary Cohen said.
“What attracted [Mayuresh] to Sun Asia was the excellent relationship Sun Asia has with Australian producers and the potential that Invigor’s technology can bring to this potential partnership.”
“[Mayuresh] is a sophisticated food supplier that sees value in our back-end capabilities and payment channels, especially WeChat Pay, which is a growing and accepted payment channel for many of their end customers,” Mr Cohen added.
Invigor technology
Invigor uses its technology to assist retailers and brands in collecting data including pricing insights, loyalty and e-payments to drive profitable operations.
The company’s data and analytics helps clients better-understand their market, competitors, customers and by doing so boost sales and improve advertising effectiveness.
Via a recent agreement with mobile payment application WeChatPay, Invigor is also able to provide digital payment options.
WeChat Pay has more than one billion users and Invigor has a contract to market and enhance WeChat’s services in South East Asian markets.
Sun Asia Group acquisition
Late last month, Invigor announced it was acquiring Sun Asia for $2 million.
The transaction has combined Invigor’s technology platform, WeChatPay’s retail distribution footprint and Sun Asia’s entrenched produce supply chain – enabling the easy sale and payment of produce into Asian markets.
Commenting on the Mayuresh deal, Sun Asia’s Geoff Shannon said the agreement had been months in the making and subject to Mayuresh undertaking a “rigorous” assessment of Sun Asia’s supply channels, quality control and relationships with farmers.
“Seamless deliver of products is the key to expanding this agreement beyond its current $25 million annualised value,” Mr Shannon said.
“We have every confidence that we can achieve this,” he added.
This morning’s news of Sun Asia’s produce supply deal spurred Invigor’s share price up 25% to reach $0.005 just before midday.