Mc Group Plc, the manufacturer of Mc jeans, has bought a 51% stake in Time Deco Corporation, a distributor of imported fashion watches, for 210 million baht to diversify its portfolio and speed up its plan to double sales within the next four years.
The company set up a new subsidiary, Look Balance, to acquire a 51% stake in Time Deco. Mc Group holds a 99.97% stake in Look Balance, which also serves as a holding company to look for new business opportunities.
Time Deco's two founders, Vararit Plengvanit and Panu Narongchaikul, still each hold a 24.5% stake.
The company distributes watch brands such as Fossil, Coach, DKNY, Burberry, Marc by Marc Jacobs and Diesel. Last year, it had sales of 453 million baht as of September 2012.
"With the new scheme, our plan to double the sales of Mc Group from 3.1 billion baht last year will be faster than earlier expectations," said chief executive Sunee Seripanu.
Mc Group aims to complete 1-2 deals next year to take over lifestyle brands such as purses and expects to reach agreements with potential representatives in Malaysia and Indonesia this year, she said.
The company has already established six representatives in Myanmar and one in Laos.
"The low and high seasons of Malaysia and Indonesia have different periods from those of Thailand," Ms Sunee said, adding that expansion through partners should boost sales.
Mc Group targets at least 20% growth in revenue and net profit this year, she said.
Ornsiree Chinkumtornwong, director for Mc Jeans and Mc Mini jeans for children, said the company has introduced Mc Mini jeans for boys aged 6-12 to cover all age groups. Mc Mini for girls will be launched in the third quarter of next year.
Recently, the company introduced Mc Me for women aged more than 40, Indigo for men aged 15-25 and Blue Brother for lifestyle target customers.
The Mc Mini price range is set at 490 to 1,595 baht, about 10-20% cheaper than rivals in the market, which is led by Lee.
Mc Mini jeans are available at 30 Mc Jean shops across the country and will eventually be available in leading department stores.
Ms Ornsiree said Mc Group has entered the children's jeans market because of less competition, while the popularity of jeans for all ages will continue over the next 3-4 years.
Mc Mini expects to generate sales of 100 million baht within three years.
MC shares closed yesterday on the Stock Exchange of Thailand at 14.10 baht, down 10 satang, in trade worth 189 million baht.