Global consumer goods giant Unilever has formed a joint venture with Europe & Asia Commercial Co to make, market and distribute home and personal care products in Myanmar, it announced last week.
The joint venture, Unilever EAC Myanmar Co Ltd, will combine the personal and home care businesses of the two companies, which have annual sales exceeding €100 million (about K149.5 billion), Unilever, a Dutch-British company, said in the May 4 announcement.
It said the companies would mutually benefit from a complementary portfolio, greater rural penetration and economies of scale. The joint venture would also create growth opportunities for Myanmar and its people through research and development, manufacturing investment, market development and nurturing local talent.
“We are excited about the synergies that both businesses can leverage,” EAC chairman U Sein Myint said in the statement.
“Unilever’s global expertise in R&D, supply chain and marketing, combined with our local manufacturing and distribution capabilities, makes this partnership attractive for us and strengthens our contribution to Myanmar,” he said.
Unilever regarded the joint venture as a critical milestone to further its growth vision in Myanmar, said Mr Pier Luigi Sigismondi, the company’s president for Southeast Asia and Australasia.
“EAC has a strong heritage in Myanmar and we share a complementary product portfolio,” he said.
EAC, established in 1994 as a trading company and with offices in Yangon and Mandalay, makes and distributes detergent products. Along with a sister company, E-LAN Co Ltd, it makes and distributes home care products such as soap, shampoo and dishwashing liquid, and some personal care products.