Boosting agribusiness in Mongolia

Background

In its third investment in the agribusiness sector in Mongolia, the EBRD is financing MCS Coca-Cola, a soft drinks producer that holds the franchise for Coca-Cola products in the country.

A loan of €9 million will see the company not only expand and broaden its product range but also improve wastewater treatment and recycling processes.

An ever-growing market

Established by two brothers, Odjargal and Od Jambaljamts, MCS Coca-Cola has become one of the largest private companies in Mongolia. The soft drinks market has grown, with sales over the last two years jumping from 56 per cent to 80 per cent in volume and value.

The company delivers soft drinks to 500-600 customers every day. Although the plant works at full capacity, it is not able to meet consumer demand, particularly during the summer. Expansion has been on the company’s agenda for a long time but long-term finance from local banks is hard to access.

Increasing output

The EBRD finance brings the Mongolian beverage business to a new level by promoting local manufacturing, employment and environmental production. MCS Coca-Cola is building a greenfield bottling plant on the outskirts of the capital, Ulaanbaatar, which will increase the company’s production capacity with new products such as fruit juices and flavoured waters.

Consumers will benefit from products priced lower than similar imported products. The local community will also benefit from the creation of more jobs.

A part of the EBRD finance will be used to build a new wastewater treatment and recycling plant for the new bottling plant and a brewery belonging to the company.

Last updated 19 April 2010