CIMB Private Equity forms Joint Venture with TraceTracker
CIMB Private Equity Sdn Bhd and TraceTracker Innovation ASA have signed a memorandum of understanding (MoU) at the opening of the World Halal Forum in Kuala Lumpur.
The MoU will regulate the creation of a co-owned joint venture company to establish a hub for electronic information for the traceability of Halal products on a global basis.
TraceTracker Innovation ASA, the global information exchange for the food industry, will bring its technology to the company.
Founded in 2000, TraceTracker is recognised as the industry pioneer by operating the Global Traceabilty Network - GTNet.
CIMB Private Equity is the private equity and venture capital arm of CIMB Group and has over RM1.2 billion in third-party funds under management.
It provides equity capital to companies in most industry sectors seeking capital for restructuring, acquisitions and expansions.
It focuses on medium to long-term investment opportunities in Southeast Asia.
Malaysia has established a prime position as the leading standardization country to the various aspects of Sharia compliance connected to the global Halal trade.
The Joint Venture Company will introduce an on-line portal called Alfitrahnet.
This portal will be dedicated to Halal products globally. TraceTracker and CIMB PE are also working closely with the Halal Development Corporation and various Halal certification bodies in different countries to utilise Alfitrahnet.
Knut Jørstad, chairman of TraceTracker said: "We believe Alfitrahnet is the missing link in the Halal food supply chain. The halal market is growing rapidly, but is being held back by the lack of transparency needed when traded goods go from local to global.
"In the past, the Halal market has existed on trust and knowledge of small, local markets. What Alfitrahnet will enable suppliers to do is understand how produce has been prepared on a much wider scale. Also, as rules on the preparation of Halal foods vary between countries and over borders, it will allow retailers to more easily source producers who adhere to their own particular requirements."
In addition, to simplify and recognize the certification bodies' work, the service has been designed to be easy to use with minimal up-front investment, making it suitable for the entire Halal food supply chain community, from small holding farmers through to multi-national retailers. It is due to go live within the next few months.