Malee expands with two joint ventures in Indonesia
published : 2 Nov 2017 at 04:00
newspaper section: Business
Malee Group Plc, one of the country's top juice makers, has formed joint ventures with an Indonesian consumer giant in a bid to strengthen its international presence.
Opas Lopansri, executive director, said it has signed an agreement with PT Kino Indonesia Tbk to set up two joint venture companies with combined registered capital of 400 million baht, of which 50% has been paid up.
The joint ventures are Malee's second investment abroad after Monde Malee Beverage Corporation in the Philippines in 2016.
"Malee Group continues expanding under its 'Reconnect' strategy by strengthening and developing collaborations with leading partners that offer considerable expertise in many areas to develop new products and increase sales and distribution channels locally and abroad. We aim to become a health-driven global F&B firm that operates sustainably," he said.
"Malee selected Indonesia for market expansion as it is a strategically important country in Southeast Asia. It has the largest population in the region of 260 million, a significant growth in the middle-income base, and GDP rising at an average annual rate of 5%, resulting in an enormous economic base with considerable purchasing power. The strength of PT Kino Indonesia's distribution network was also important in our decision."
Mr Opas said the two new joint ventures are Malee Kino Thailand Co in Thailand and PT Kino Malee Indonesia Ltd. Malee Kino will focus on marketing and distributing Kino Group products in Thailand, while PT Kino Malee will develop new beverage products and expand the market for Malee products in Indonesia.
The group is conducting a market study to develop products that best meet the demands of consumers in both countries, and expects the businesses to become operational by mid-2018.
"We are confident these two joint ventures will enhance both companies' competitiveness while expanding our business into new markets and reinforcing our existing markets by offering more diverse products that meet consumer preferences. By combining the strengths and expertise of Malee and Kino, we believe this partnership will drive a leap in growth for our companies," said Mr Opas.
Malee recently announced it plans to spend 1.5 billion baht to transform the company into a health-driven global food and drink firm by 2021. The rebranding started with last year's change from Malee Sampran to Malee Group. A packaging redesign and new product development align with its goal to focusing on health-driven products.
Some 57% of Malee's revenue stems from the domestic market, with the rest coming from 40 countries including Cambodia, Laos, Myanmar, Vietnam, the Philippines and the US.
The group reported revenue of 6.54 billion baht in 2016, with a net profit of 530 million.
MALEE shares closed yesterday on the SET at 44.25 baht, up 75 satang, in trade worth 247 million baht.