Romanian Chio Potato Chips Production Supplied by Grup Șerban Holding

To supply potatoes for the Chio chips line made in Romania, Grup Șerban Holding has joined up with Intersnack Romania. According to the provisions of the agreement, the original partnership may automatically renew after three years.

“Potato production for industrialization represents one of the differentiators of Grup Şerban in the field of agriculture in Romania. [...] The partnership with Intersnack Romania means recognizing the quality and efforts made by Grup Şerban in developing potato production and, implicitly, Romanian agriculture. At the same time, this represents a new opportunity to expand our business and increase financial performance in the medium and long term. Through this partnership, we can ensure a stable and predictable revenue stream, allowing us to plan future investments and develop the business sustainably. [...],” Nicolae Şerban, Chairman of the Board of Directors of Grup Şerban Holding, said, cited by Business Review.

Due to the rising global demand for chips, potato production has grown to be an increasingly appealing niche. Even though growing such potatoes takes specialized equipment and is more expensive, the yields and prices are far higher than those of conventional grain crops. In comparison, four hectares of grains or oilseeds produce about the same amount of money as one hectare of potatoes for chips. Chips are produced at Intersnack with strict adherence to EU quality and agricultural production regulations.

Grup Șerban has made substantial investments over the years to create a program for providing potatoes for chips, and as a result, it is now one of the few agricultural producers in Romania with the production, storage, and delivery capabilities required to supply this type of potato to industry leaders. The business grew these potatoes on about 500 hectares of land in 2022. Grup Șerban will deliver 5,000 tons of potatoes in the first year of the collaboration with Intersnack Romania, with an ambitious expansion strategy for the following years.

Grup Șerban Holding reported a combined turnover of RON534.4m in 2022, up 11% from 2021. EBITDA was RON67.9m, up 27%, and net profit was RON33.8m, up 10% from 2021.

As of February 28, 2022, Grup Șerban Holding shares are traded on the AeRO market of the Bucharest Stock Exchange under the ticker GSH. The company's market capitalization at the moment is somewhere around RON300m.