The effect of Mengniu's holding on Li

June 12, 2014, the State Council forwarded the Ministry of Industry, Development and Reform Commission, the Ministry of Finance and the Department of Food and Drug Administration and other ministries "on the promotion of infant milk powder Enterprise merger and reorganization of the working methods," clearly pointed out: "To encourage enterprises in line with the qualification conditions of production assets and brand as a Holding shares and other forms of the development of infant formula milk powder Enterprise merger and reorganization. Encourage the adoption of "powdered infant formula food good production norms (gb23790-2010)" Certification of enterprise mergers failed to pass the certification of enterprises. Give full play to the leading role of the industry's large backbone enterprises, encourage cross-regional, trans-ownership merger and reorganization, the implementation of strong alliances, mergers and acquisitions of small and medium-sized enterprises. To guide the enterprises with brand, technology, characteristics of resources and management advantages of SMEs to mergers and acquisitions, industrial alliances and other ways to do better. To promote the strength of enterprises to go out and participate in global resource integration and management, enhance the internationalization of operational capabilities. "Mengniu Dairy Group, the head of the Department of Milk Powder, said that this policy, for the optimization of industry resource integration, promote the transformation of the industry to upgrade and boost consumer confidence is a decisive role." Li Dongming vice president of the Mengniu to join the actual experience of a year, supporting the above statement, he believes that the introduction of the document is very consistent with the current Chinese infant milk powder industry integration and development needs. First of all, the State Council document line-style Prime Minister issued, once again shows that the country to do strong, bigger domestic brand determination and confidence, this is the embodiment of the national will! Secondly, the introduction of the document can accelerate the integration of the industry, optimize the competitive environment, change the domestic brand many and miscellaneous, small and disorderly situation, can greatly improve the domestic brand image, is conducive to enhance consumer confidence in domestic brands. Third, to the small and medium-sized brand to the way out, to the integration of the preferential treatment, can stabilize social employment, avoid intensification of contradictions, with the means of development to solve the real problem. According to the "on the promotion of infant milk powder Enterprise merger and reorganization of work methods", after the merger and reorganization of infant formula milk powder enterprises, to achieve capital, organization, production, management, brand and other aspects of integration. Supporting enterprises to eliminate backward production capacity through mergers and acquisitions, enterprises to shut down or voluntarily withdraw from the production of infant formula milk powder, in accordance with the relevant policies of merger and reorganization. Mengniu believes that the encouragement of strong alliances can guide the industry to develop healthily. Encourage the use of large backbone enterprises to play a leading role, the importance of the large backbone enterprises in technology and management advantages, through the large backbone enterprises in technology and management of high standards and advanced experience in small and medium-sized enterprises, the elimination of backward production capacity, improve management level, improve the quality system. Mengniu Dairy industry as a large backbone enterprises, has held on June 18, 2013, the first to pull off the domestic infant formula milk powder industry merger and reorganization of the big curtain. As Sun Yiping, president of Mengniu Dairy, said at the ceremony, "for two companies, this means not only cooperation and complementarity, but also a shared commitment to consumers." "Over the past year, both sides in product development, product innovation, upstream procurement, distributionand sales channel development, product quality control, consumer marketing and other aspects of complementary advantages for the development of two companies bring significant synergy effect. The two sides together to create a platform for infant milk powder, trying to reach more Chinese consumers. Through strong alliances, Mengniu Dairy's performance also increased significantly, 2013 years of operating income and net profit rose are more than 20%. And the acquisition of the company, so that mengniu in the milk powder business Short board quickly to be completed, in the 2013 annual report, the company from August 2013 after the merger of Mengniu only 5 months, the contribution of 1.4991 billion yuan of income, to achieve the Mengniu milk powder business income of nearly 400% growth.