Focus on costs will determine success of TPG's Ingham float, fund managers say

For the upcoming $1 billion-plus Inghams Group Ltd float heading for the ASX to succeed, investors will have to be convinced management can transform the business through cost-cutting, because the chicken processor does not have strong revenue growth prospects.

Fund managers are learning that Inghams intends to embark on an aggressive efficiency drive under life as a listed company, which will be the biggest source of earnings uplift and, on some analyst estimates, could deliver $160 million to $200 million in savings over five years. Most of that will come from automation. Fairfax Media reported that the company's 8000-person workforce will be reduced under management's "project accelerate".