After raising fund through initial public offering, Thaifoods Group has followed its plan to expand in the overseas market, starting from acquiring the stake in Japanese livestock producer.
T Paragon Holding, a subsidiary of Thailand’s integrated livestock and animal feed maker Thaifoods Group, has acquired a 45.71 per cent stake in japan based Seven Foods Co, with total investment capital of 32 million yen (approximately $267,000).
According to the company’s statement, Seven Foods is one of the major chicken meat and chicken-related producers in Japan with a registered capital of 70 million yen after T Paragon completes the transaction.
“This joint venture will help us increase our distribution channels for exporting product to Japan as well as boost the cooperation on brand creation and production process,” TFG’s deputy managing director Duangkamol Saisee said in the statement.
This joint venture is line with its earlier announcement to focus more on exploring new market and boosting its export.
“For our five years plan (2015-19), we project the revenue growth of 20-30 per cent per annum. Our strategies are to increase our production capacity, create more value-added products and expand the export market,” Chairman Winai Teawsomboonkit said.
By 2019, it plans to increase its production capacity of fresh chicken meat from 3 million chickens a week to 3.5 million as well as the monthly production capacity of pork from 50,000 pigs to 150,000.
It is also constructing a chicken sausage production plant with a daily production capacity of 30,000 kilogrammes. The plant is scheduled to start the operation in the second quarter next year.
The company had started the exporting produce in 2015. The export volumes have already grown tenfold from 100 tonnes a month to 1,100 tonnes within six months.
“We will set up three more distributions in the northeast of Thailand in a bid to serve the growth of border trading with neighbouring countries. The revenue from export accounts for 10 per cent of total revenue currently, and it should increase to 50 per cent by 2018,” he said.
In the future, it set around 40-50 per cent of its revenue will come from chicken products, 30-35 per cent from pork, 10-15 per cent from animal feeds and 10 per cent from ready-to-eat products.
The revenue this year is forecast to be similar to 17 billion baht in 2014 due to the economic uncertainty.