This is an enterprise with more than 20 years of development, founded by businessman Tran Sy Truc.
This year is the 5th year, Sunhouse owner Nguyen Xuan Phu takes the main seat at Shark Tank Vietnam. The attraction of the program has helped Shark Phu’s personal brand, as well as the brands he built such as Sunhouse household appliances, Richy rice cakes or Karo rice cakes, to be promoted more widely. Many times, this veteran shark gives the business model of his projects as a reference for the models of startups that come to raise capital, or even use the ecosystem and experience from there. invite to attract startups to participate.
Remember in episode 7 of Shark Tank Vietnam season 4, at the fundraising stage of Begin 365 protein bar company, Shark Phu revealed some information about the Karo factory.
When CEO Begin 365 said that her factory has an area of 200 m2, production capacity of 20,000 bars/day, Shark Phu commented: ” 20,000 bars is not worth much. Our Karo cake, is one-day production per day. line, sales are already about 1 billion. And he has 5 lines. If this food industry has entered, the number of them is huge, the problem is how to get in “.
According to information provided by Shark Phu, it can be estimated that the production output of Karo cake is about 5 billion VND/day.
The owner of Sunhouse also added: ” Actually, he has a very large food company, a sales team of about 1,500 people, expected revenue this year is about 3,000 billion VND.”
In episode 2 of Shark Tank Vietnam season 5 broadcast on June 12, 2022, Richy was once again mentioned through the revelation of Shark Phu with a revenue of up to 3,000 billion VND.
Not many people know, behind the Richy brand is Hoang Mai Trading and Production Co., Ltd., an enterprise with more than 20 years of development, founded by businessman Tran Sy Truc. Mr. Nguyen Xuan Phu has been on the list of capital contributors of this company since the beginning of 2019, with the capital contribution rate at that time nearly 22%. Along with Mr. Phu, the number of capital contributing members of Hoang Mai company is up to 8 people, the latest total charter capital is 96 billion VND.
Hoang Mai Trading and Production Co., Ltd was established in 2001, and is a pioneer in importing “foreign” confectionery to Vietnam. According to the announcement of Vietnam Report, Hoang Mai with the brand Richy is one of the 10 prestigious companies in the Food and Beverage industry in 2021.
Hoang Mai’s current business activities are parallel between trading (imported goods) and manufacturing products (confectionery) under the Richy brand.
According to the introduction on the website, the business is currently distributing 167 products with famous brands such as Chocolate Rosen, Rinda, GPG Food, Elvan candy, Lam bertz, Apollo,…
Regarding self-produced products, perhaps when it comes to Richy, consumers will immediately think of rice cakes. In fact, Richy also has other product lines such as egg tarts, fresh cakes (most famously Karo), stick cakes, oat cakes, and cookies,…
Richy doesn’t just have rice cakes!
Richy products are currently produced at the Northern Richy factory in the industrial cluster of Phung town (Dan Phuong, Hanoi) and Trang Bang Industrial Park (Tay Ninh) under two legal entities, the Northern Richy Company and the Richy Company. southern.
According to research, Southern Richy Company was established in 2007, the predecessor of Hoang De Dairy and Confectionery Joint Stock Company with a charter capital of up to 325 billion VND. Similarly, Northern Richy was established in 2009.
The two companies do not disclose the ratio between commercial revenue (imported goods) and production revenue (Richy products), but according to a data source from Young Intellectuals, Hoang Mai’s revenue in 2019 in about nearly 2,200 billion VND, of which the total revenue of 2 Richy factories is only 1/4, about more than 500 billion VND. According to our observation, from 2020 Richy has no new factory.
Structure of revenue – profit and “extreme difficulty” of the food industry
Usually, the gross profit margin of the manufactured product will be higher than that of the commercial product. As in episode 7, season 4, during Startup’s presentation, Shark Phu asked: “What is the expected cost between our cost and selling price?”. Startup quickly replied: “Currently our price structure is 25% of the cost price.”
Shark Phu continued, “where else 75% is for other costs and profits” with the comment: “This is also the general formula of the food industry”.
However, according to Mr. Phu, the most difficult stage is the first stage when the product reaches users and wins their trust. Difficult and ” extremely expensive “, Shark Phu emphasized.
The story of the Karo product launch was also shared by this shark. Accordingly, the Richy company had to launch it for the 3rd time, even having to change the brand name to be successful. It is not easy to introduce and bring a new product into the market for users to grasp, even if the product is of good quality.
“In the food industry, it’s extremely expensive to be successful,” Shark Phu once again repeated.
Richy products can benefit from the existing distribution and sales system that Hoang Mai has built since 2001. Manufacturing jobs after the distribution system has been built will overcome barriers”extremely expensive” as shark Phu said above.