Four companies under Saha Group will together allocate almost 5 billion baht to expand their businesses domestically and internationally from 2015-16.
A concept restaurant for Mama instant noodles tests consumer response at the 18th Saha Group Fair, which runs until tomorrow at the Queen Sirikit National Convention Center in Bangkok. SOMCHAI POOMLARD
Sahacogen (Chonburi) Plc (SCG), a SET-listed small power producer, plans to spend 1.5 billion baht to build a new power plant in Chon Buri's Si Racha district in next year's first quarter and start generating electricity in 2016.
The expansion will take its electricity capacity to 250 megawatts. The additional 50 MW will serve tenants in a nearby industrial park developed by Saha Group.
Another 50-60 million baht will be allocated to build a small biofuel plant in Myanmar, opposite Tak province in Thailand. Its 600-tonne capacity will be divided to serve demand in each country.
SET-listed President Bakery Plc (PB), maker of Farmhouse bread and other bakery items, will use about 2 billion baht to build a new bakery in Bangkok.
Then SET-listed Thai President Foods Plc (TF), maker of Mama instant noodles, will spend 700 million baht to set up new factories overseas. About 500 million will be used for plants in Ghana and the Middle East through joint ventures, while another 200 million will be invested in a second factory in Myanmar.
The Ghanaian factory, due to start operating next year, will have capacity of 400,000 packets of noodles a day. In Myanmar, the Mandalay plant due to open in 2016 will produce 350,000 packets a day.
Thai President expects sales of Mama noodles from all international factories including in Myanmar, Cambodia, Bangladesh and Hungary will contribute 30% of company sales over the next three years, up from 10% now or worth 1 billion baht.
It has a Mama concept restaurant at the ongoing Saha Group Fair to test the market before opening a restaurant chain, said chief executive Pipat Paniengvait.
Annual consumption of instant noodles in Thailand is 43 packets per person, ranking fourth in the world after South Korea, Indonesia and Vietnam.
"With the high noodle consumption, we will approach Thai consumers about eating our instant noodles at Mama shops," said Mr Pipat.
Sales of Mama instant noodles in the first five months of this year grew by 5%, ahead of industry growth of 3-4%. This year, Thai President expects sales will grow by 5% to 10 billion baht.
Saha Pathana Inter-Holding, a holding company under Saha Group, will spend 675 million baht to grow its presence in Asean, China, Africa and Europe.
The company will diversify its business in property, industrial parks, logistics and food services, partly through mergers and acquisitions, said managing director Chantra Buranaruek.
Last year, combined revenue from listed companies under Saha Group stood at 90.8 billion baht, while the group's revenue was 200 billion baht.
Boonkiat Chokwatana, president of ICC International Plc, a distributor of fashion brands including Arrow and BSC, said the company would grow business by developing new products for the younger generation as well as exporting its brands to Asean.
ICC is setting up joint ventures to distribute its fashion and beauty products in some Asean countries to cash in on opportunities from the Asean Economic Community due to launch in late 2015.
ICC's international sales will represent 10% of the total over the next three years, up from 5% this year.
Meanwhile, Saha Pathanapibul Plc, distributor of Mama instant noodles and Pao detergent, is set to grow its sales by 5% this year.
OCC Plc, distributor of Covermark cosmetics, will increase its competitiveness in the tough beauty and cosmetics market by adding an online channel to widen its distribution network. Vietnam and Myanmar are two priority export markets.
SCG shares closed unchanged yesterday on the SET at 4.98 baht in light trade worth 22,000 baht. TF closed unchanged at 167.50 baht in light trade worth 167,000 baht, while PB closed unchanged at 46.75 baht in light trade worth 178,000 baht.