EBRD and Zubr Capital invest in Mila Group

EBRD and Zubr Capital invest in the group of companies Mila, which is a wholesale distributor of beauty and personal care products, and sells these products through its own store chain Mila. At the moment, "Mila" is one of the largest drogerie-chains in Belarus, which has 417 stores in Minsk and the regions.

The company was founded more than 20 years ago in 1998 and began its development from the wholesale business. The group of companies is a wholesale distributor of world leading brands - Henkel&Schwarzkopf, Colgate&Palmolive, Johnson&Johnson and Beiersdorf. The company has more than 50 contracts with international brands of perfumes and cosmetics.

Since 2010, the company has successfully developed drogerie chain. During this time, drogerie chain Mila has grown to 417 stores with «convenience store» format and has become one of the largest drogerie chain in Belarus. The group of companies employs more than 5,000 employees.

«Our company serves millions of customers every month. The company delivers through a rented logistics center, and we see growth potential in the development of our own logistics and warehouse. This will allow us to reduce costs and develop business faster. Investments of the European Bank for Reconstruction and Development and Zubr Capital will go primarily to the development of logistics, as well as to the development of the drogerie chain Mila», - said co-founder  Mila Group Arkady Sergeyev.

Investments of Zubr Capital and EBRD will be used for increasing the number of Mila stores (also in regions) and their reformatting: the creation of flagship stores, the development of product and assortment policy. «We see the desire of management to improve and develop the Mila chain, constantly implementing advanced international techniques, as well as developing their own unique solutions. We appreciate the opportunity of cooperation and are pleased to support a dynamic company," said Alexander Yauseichyk, Senior banker at the European Bank for Reconstruction and Development 

Zubr Capital Fund I acquired a minority stake in Mila Group. 

«When we invest in companies, first of all we look at the potential of development and competence of the team. In Mila Group we see a strong leader and experienced team that is able to implement changes in the company quickly and effectively – from the reformatting of the stores to the implementing of new product lines. We are confident that the investments of Zubr Capital and the European Bank for Reconstruction and Development will help the company to realize its most ambitious plans», - said Oleg Khusaenov, CEO Zubr Capital. 

«There are dramatic changes in the Belarusian retail business: introduction of modern store formats, developing of convenience stores and online retailers, customer data projects have begun to personalize offers and improve customer service, develop modern formats of warehouse and logistics operations. By investing in Mila, we strive to implement the most modern technologies in the management of such companies and provide our customers with the opportunity to make purchases in the most convenient format for them and with high quality service», - added senior investment Director of "Zubr Capital" Konstantin Zapolianski.

For EBRD, this deal is an opportunity to support the development of private business in Belarus. Together with Mila group and ZCF I Fund, we once again signal to business and investors about the opening opportunities for investment in Belarus.
Alexander PivovarskyEBRD Head of Office in Belarus
  • Publication Zubr Capital Press Corps

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