U.S.-based private equity buyout firm, PHI Group has agreed to acquire a minimum 51 percent stake in Vietnamese agribusiness company, Hoang Minh Chau Hung Yen LLC (HMC) – a cultivator and processor of turmeric.
Under the terms of a Memorandum of Understanding signed between the two companies, PHI will pay an unspecified combination of cash and stock in exchange for the stake, which will serve to enhance the firm’s plan to grow organic turmeric in Hung Yen Province, Vietnam. It also will leverage HMC’s expertise and experience in the production of organic turmeric, to gain seed roots for PHI’s turmeric farming program, and to grow premium organic turmeric in the U.S. for Abundant Farms, another agricultural subsidiary of PHI Group.
A Superior Spice
Turmeric is a relation to ginger, is a key component of curry, and is a cornerstone spice for adding natural color and flavor to dishes. However, research has been building in support of its many health benefits as well, which has driven consumer demand for the ingredient.
High in a compound called, curcumin, turmeric has been found to fight inflammation. The Huffington Post reports that a study conducted in 1989 found that turmeric was found to provide effective relief for heartburn and indigestion, and a study concluded in 2012 in Thailand that tracked patients who had bypass surgery between 2009 and 2011, found that only 13 percent of patients that were given curcumin capsules three days before bypass surgery and five days after surgery suffered a heart attack during their post-surgery hospital stay, compared to 30 percent of bypass patients that were given a placebo.
Turmeric’s anti-inflammatory and antioxidant properties also have been proven to delay the onset of Type 2 diabetes in a study conducted in 2012, and have been proven to block the development and spread of cancer in lab animals under clinical studies. Furthermore, results from a study published by BioMed Central in September 2014 found that aromatic turmerone, another compound found in turmeric was effective at repairing stem cells in the brains of rats, indicating a possible application in the treatment of neurodegenerative conditions such as Alzheimer’s.
In a recent statement announcing its acquisition of HMC, PHI Group states that turmeric is also useful in easing joint and stomach pain, Crohn’s disease, jaundice, IBS, gallbladder issues, high cholesterol, fatigue, and skin inflammation from radiation treatment, according to WebMD.
As consumers become more informed and health conscious, turmeric has increasingly become a trending ingredient, not only as a flavor and color in foods, but as an essential oil in pharmaceutical and perfume products. Due to these beneficial cross-industry applications, Global Market Insights released data in October 2016 that estimates the curcumin market will reach a value of $99.3 million by 2024.
“Since traditional turmeric rhizomes in Chi Tan Village, Hung Yen Province are among the very best in the world in terms of size and curcumin contents, we believe PHI Group’s Abundant Farms can greatly benefit from using these seed roots and HMC’s expertise and experience in our turmeric farming program,” noted Henry Fahman, chairman and CEO, PHI Group.
Also Moving on Sacha Inchi
The announcement of PHI’s agreement to acquire HMC comes only days after the firm announced the signing of a Business Cooperation Agreement with Thailand-based Nathan Trading Company Ltd.(NTC) – a grower and processor of sacha inchi plants and seeds.
Under the terms of the agreement, PHI and NTC will jointly promote the growing of sacha inchi plants across Southeast Asia and other similar geographies, and will secure harvests for raw material supply to meet future demand. PHI has also agreed to purchase NTC’s sacha inchi’s products on select international markets, and to launch marketing and sales strategies for NTC’s sacha inchi products on the U.S. and other global markets.
Native to the Amazon rainforest, sacha inchi has been a part of the Incan diet for thousands of years. Grown as a rainforest vine that produces star-shaped seed pods, the plant is cultivated across Southeast Asia and South America, and has been recognized to help with weight loss, heart health, bone health, to promote skin and hair condition, and since it’s a complete protein, sacha inchi contains all the amino acids the human body needs, while also providing nine grams of protein per serving.
“We are delighted to partner with NTC in this program because sacha inchi fits well into our premium organic farming initiative,” said PHI’s Fahman. “Sacha inchi can be a very desirable component of specialty foods and a superior substitute for current regular cooking oil thanks to the benefits of its unparalleled combination of Omega 3, 6 and 9 fatty acids.”
-Lynda Kiernan
Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration please contact Ms. Kiernan at lkiernan@globalaginvesting.com