Ichitan Group (ICHI), the SET-listed ready-to-drink green tea producer, plans to build a plant worth 1 billion baht in Indonesia next year to serve demand in Asean's most populous nation.
The company is also aiming at a 25% surge in revenue next year.
Ichitan penetrated Indonesia, which has a beverage market valued about 70 billion baht, after it formed Ichitan Indonesia in a recent 50:50 joint venture agreement with PT Atri Pasifik, a subsidiary of retail group PT Sigmantara Alfindo.
"Indonesia is home to more than 200 million people and is the biggest market in Asean. We see growth opportunity in the country and expect sales volume will easily reach our target. Next year we plan to enter other countries in the region, especially neighbouring markets," said Ichitan chairman and chief executive Tan Passakornnatee.
The company targets a 10% share of Indonesia's beverage market in the long term.
Mr Tan said Ichitan also planned to expand into the Greater Mekong Subregion countries next year, and output from its plant in Thailand would be shipped to those countries.
The domestic plant has an annual production capacity of 600-800 million bottles, and its capacity will be raised to 1-1.2 billion bottles a year —10-20% of which will be exported to new markets — after the new plant, which is now under construction, starts operation next year.
Separately, the company is set to start producing a fruit juice under the Bireley's brand to be sold in local and regional markets next year.
Ichitan paid 240 million baht in June for the rights to sell the brand's orange, grape and lime juices in Thailand and 15 other markets.
"We hope to increase revenue by 25% next year, and will promote Bireley's fruit juice," said Mr Tan.
Ichitan dominates Thailand's ready-to-drink green tea market, with a market share of 40% at the end of October, followed by Oishi at 37% and Puriku at 8%, according to market research firm AC Nielsen.
ICHI shares closed on the SET yesterday at 22.20 baht, up 10 satang, in trade worth 169 million baht.