Thai food giant plans $2.5b expansion
Charoen Pokphand Foods (CP Foods), Thailand’s largest agro business conglomerate, has said it will spend 75 billion baht ($2.5 billion) to expand its domestic and overseas feed, farm and food businesses in the next five years.
15 billion baht ($500 million) have been set aside as a budget for 2013. 60 per cent will be for expansion in 12 countries where the company is already invested in and 40 per cent will be for the domestic market, the company’s CEO, Adirek Sripratak, told media in Bangkok on December 28.
The revenue target for the company is 400 billion baht ($13 billion), up 14 per cent from sales in 2012.
In 2013, CP Food will not invest in new countries but acquire two new businesses in countries were it already operates, said Sripratak, without revealing the names of the takeover targets.
“We want to expand in foreign countries where we have operations. Those countries are in emerging markets, which have more room to grow, at least 15 per cent a year,” Adirek said.
The twelve countries where CP Food operates are Russia, India, Turkey, Taiwan, Malaysia, South Korea, Australia, China, Japan, Singapore, South Africa and the Philippines.
It also has sales offices in the UK and other EU countries, in the US and in Dubai and counts Britain’s Tesco and Costco in the US among its big buyers.
The company, flagship of the unlisted Charoen Pokphand Group (CP), owned by Thailand’s richest man Dhanin Chearavanont, is seen by analysts as a strong play on consumption patterns in emerging markets. The company’s revenue from outside Thailand rose 260 per cent to $3.3 billion in the first six months of 2012, while the domestic market grew by only 6 per cent in the same period.
CP Foods is listed at the Stock Exchange of Thailand and 49.93 per cent owned by CP Group. Its products range from animal feed to processed foods and ready-made meals under the CP brand.
[caption id="attachment_6154" align="alignleft" width="240"] Convenience food is a multi-billion dollar business for CP Foods in Asia and beyond[/caption] Charoen Pokphand Foods (CP Foods), Thailand's largest agro business conglomerate, has said it will spend 75 billion baht ($2.5 billion) to expand its domestic and overseas feed, farm and food businesses in the next five years. 15 billion baht ($500 million) have been set aside as a budget for 2013. 60 per cent will be for expansion in 12 countries where the company is already invested in and 40 per cent will be for the domestic market, the company's CEO, Adirek Sripratak,...
Charoen Pokphand Foods (CP Foods), Thailand’s largest agro business conglomerate, has said it will spend 75 billion baht ($2.5 billion) to expand its domestic and overseas feed, farm and food businesses in the next five years.
15 billion baht ($500 million) have been set aside as a budget for 2013. 60 per cent will be for expansion in 12 countries where the company is already invested in and 40 per cent will be for the domestic market, the company’s CEO, Adirek Sripratak, told media in Bangkok on December 28.
The revenue target for the company is 400 billion baht ($13 billion), up 14 per cent from sales in 2012.
In 2013, CP Food will not invest in new countries but acquire two new businesses in countries were it already operates, said Sripratak, without revealing the names of the takeover targets.
“We want to expand in foreign countries where we have operations. Those countries are in emerging markets, which have more room to grow, at least 15 per cent a year,” Adirek said.
The twelve countries where CP Food operates are Russia, India, Turkey, Taiwan, Malaysia, South Korea, Australia, China, Japan, Singapore, South Africa and the Philippines.
It also has sales offices in the UK and other EU countries, in the US and in Dubai and counts Britain’s Tesco and Costco in the US among its big buyers.
The company, flagship of the unlisted Charoen Pokphand Group (CP), owned by Thailand’s richest man Dhanin Chearavanont, is seen by analysts as a strong play on consumption patterns in emerging markets. The company’s revenue from outside Thailand rose 260 per cent to $3.3 billion in the first six months of 2012, while the domestic market grew by only 6 per cent in the same period.
CP Foods is listed at the Stock Exchange of Thailand and 49.93 per cent owned by CP Group. Its products range from animal feed to processed foods and ready-made meals under the CP brand.
