Kerry Express (Thailand), a parcel service operator, and Betagro Group have jointly set up Kerry Cool to oversee a delivery platform for frozen and refrigerated food, with a goal to have the new company listed on the stock market within the next five years.
Kerry Express expects Kerry Cool to launch an initial public offering (IPO) on the Stock Exchange of Thailand in 2027.
Both Kerry Express and Betagro Group believe Kerry Cool's service will help support Thailand's food processing industry.
Kerry Cool has initial capital worth 50 million baht for 55 service areas. It plans to increase the investment budget to 1 billion baht within 2027.
Alex Ng, chief executive of Kerry Express, said that the budget will be mostly spent on the development of cold storage facilities to make sure the service will cover targeted areas countrywide.
"The company expects Kerry Cool will become a market leader and increase revenue by 25% for Kerry Express between 2025 and 2027," he said.
Mr Ng expects Kerry Cool to rack up sufficient revenue to pave the way for the IPO.
Kerry Express made a 60% investment in Kerry Cool while the remaining 40% investment was made by Betagro Group.
According to Kerry Express, Thailand is a high potential market for logistics. The market value for logistics in the country currently stands at around 30 billion baht, with an average growth of 12-15% a year.
Kerry Cool is primarily aimed to serve operators in the business-to-business (B2B) segment, especially those in the South.
The company expects to expand the service to the customer-to-customer (C2C) segment in the first quarter of 2022.
"We aim to be the first to provide a delivery platform for frozen and refrigerated food under our patented advanced technologies, including a real-time tracking system," said Mr Ng.
Vasit Taepaisitphongse, chief executive and president of Betagro Group, said this cooperation will help improve Thailand's food industry due to the high-standard service offered at affordable prices.
Delivery of frozen and refrigerated food in Thailand is still in the early stage of development. The service is mainly provided in the B2B segment.