Malaysia-headquartered private equity firm Navis Capital Partners has invested in Thai food processing company Srithai Daily Foods, according to an announcement.
Financial details of the transaction were not disclosed.
Srithai is an original equipment manufacturer of end-to-end food condiments and food solutions in Thailand. Its products have served foodservice players both in Southeast Asia and China, where the agriculture sector is gripped with the problem of high-cost and food supply chain integrity issues.
Meanwhile, Thailand has a large and well-regulated agricultural economy, and is a low-cost producer regionally and globally in certain key ingredients, Navis Capital said.
“Thailand also has the most advanced manufacturing capability in this sector in Southeast Asia, with traceability and international standard manufacturing practices as pre-requisites for success,” it added.
In addition to providing sauce and condiment products to quick-service restaurants, Srithai has also expanded into food solution products, such as flavoured tea premix powder, green tea premix and ready-to-cook sauces. It offers all these products to restaurant and beverage chains, allowing customers to control cost, save preparation time and ensure consistent food quality.
“We are impressed by the development of the company and its ability to continually develop new products that help customers to adapt to the rapid changes in consumer behaviour and new industry trends. There are many potential opportunities for the company to expand further in Thailand and the Asia Pacific region,” said David Ireland, senior partner at Navis Capital.
The funding in Srithai marks the private equity firm’s second investment in 2019. In May, it said it invested in Vietnamese education group Thanh Thanh Cong Education. Meanwhile, we have learnt that the firm is also mulling several exits from older investments, including Singapore’s Eng Kong Holdings, Vietnam’s Hanoi French Hospital and Australia’s Modern Star.
Navis Capital is raising its eighth and biggest fund at a $1.75 billion target – a first close of $1 billion was reached in April.