Carabao Tawandang Co, the energy drink maker of Carabao Dang, plans to raise funds through the stock market in a bid to strengthen its distribution network and business expansion in the near future.
Managing director Sathien Setthasit said the firm wants to list on the Stock Exchange of Thailand (SET).
On its 10th anniversary late last year, the company made a splash by spending 2.4 billion baht for the now defunct Thai Danu Bank's former office building on Silom Road for its new headquarters.
The company also discontinued its distribution contracts with long-time partner Serm Suk Plc to set up its own logistics network.
Carabao wants to ensure the distribution for its products and plans to launch additional items in the future, said Mr Sathien.
"Prior to this, I never thought about being a listed company even though the SET has been trying to convince me to raise funds there. But as our business ages, we need to think about how to draw our growth map, and logistics is a major growth path," he said.
Massive amounts of capital are essential for the logistics project as well as expansion, so fund-raising through the SET is the solution, said Mr Sathien.
Last year, the company spent about 500 million baht to build a fleet of 100 heavy trucks.
Mr Sathien said while the margins for energy drinks are thin, having its own distribution network will allow the company to respond to market demand. He sees room for expansion in the beverage sector, and the company will spend at least 1 billion baht for expansion this year including the launch of a new drink.
Last year, the company's domestic revenue was about 5 billion baht, with 1.2 billion from exports.
Carabao expects its revenue to rise by at least 25% this year domestically, higher than the industry, which is expected to gain 10% in an energy drink market valued at 25 billion baht.
"We're looking for opportunities to invest in China with its rapid economic growth. Myanmar is also interesting," said Mr Sathien.
"Globally, the energy drink sector is relatively saturated, and even though the domestic situation is better, we have to focus on expansion to emerging countries where competition remains low."
Carabao Dang is available across Asean and is the market leader in Cambodia, with 300 million baht in annual sales.
The company has also entered the Middle East, and it is the leader in Afghanistan with 400 million baht in total sales. In Africa the drink is popular in Nigeria, Somalia and Yemen.
About the author
- Writer: Darana Chudasri
Position: Business Reporter