RS unveils M&A-fuelled B2bn expansion strategy

RS unveils M&A-fuelled B2bn expansion strategy

Mr Surachai and Mr Wittawat, left, unveiled RS Plc's new business direction at a press conference on Monday. Mergers and acquisitions will play an important role.
Mr Surachai and Mr Wittawat, left, unveiled RS Plc's new business direction at a press conference on Monday. Mergers and acquisitions will play an important role.

SET-listed RS Plc plans to allocate between 1-2 billion baht for new merger and acquisition (M&A) deals this year to create opportunities for growth and expand the ecosystem for the group.

However, the company is noncommittal about a media report that RS is in M&A talks with Unilever Thailand, a local arm of the global consumer product conglomerate Unilever.

According to Surachai Chetchotisak, the company's chief executive, the company is negotiating with two partners for business collaborations via M&A, and it aims to seal the deals this year. The new business deals relate to its entertainment and commerce business that provide synergy to its existing businesses.

The company has already reserved cash of 500 million baht to one billion baht per deal, he said.

"Partnership, merger or acquisition and the joint venture are RS's four key strategies to build the group's sustainable growth in the next three years," he said. "Such strategies will also help add value to the company and allow the company to enter the new markets."

According to Mr Surachai, the other key strategies include digital economy development to strengthen its "entertainmerce" business, which can be achieved by creating a comprehensive digital platform, both in terms of e-commerce and online content.

The company also aims to promote digital content and utilise the existing assets of RS Group for maximum benefit as well as transform existing physical assets into digital assets to generate new income.

In addition, the company aims to be a data hub, analysing data to make business decisions and providing a clear business direction regarding its vision and mission as well as integrating and sharing data between businesses to earn additional income from new business opportunities.

The company also wants to strengthen its products to capture mass-market customers by promoting affiliated brands to expand its customer base, developing products using new innovations to become unique and the first player in the market, Mr Surachai said.

Wittawat Wetchabutsakorn, the company's chief financial officer, said that the direct sales business is also an interesting channel.

The company announced its direct sales plan last year by recruiting Exclusive Distribution Network to distribute "Well U'', its food supplement. It has currently signed up more than 1,000 distributors with annual sales of around 100 million baht.

Mr Wittawat said that RS Group will achieve its goals in 2022 by operating the business according to the LEAP strategy: L for Lifestyle Wellbeing Solution, E for Entertainment Uplift, A for Asset Monetisation, and P for Popcoin.

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