KCG Corporation, Thailand's leading manufacturer, importer and distributor of dairy and bakery ingredients, is planning an initial public offering (IPO) as it aims to mobilise funds to expand its business, invest in innovations and advance towards an environmental, social and governance (ESG)-focused organisation for sustainability.
According to Watit Tamavimok, the company's chief executive officer, KCG is in the process of preparing for an IPO on the Stock Exchange of Thailand and considering the most appropriate timing for the share offering.
KCG plans to issue and offer up to 155 million shares in the IPO, representing 28.4% of the total issued and fully paid-up ordinary shares of the company.
Proceeds generated by the IPO would be allocated to developing a cold chain warehousing facility called KCG Logistics Park, expanding the company's production capacity and enhancing efficiency, as well as working capital to support the company's business strategy.
Established in 1958 as Kim Chua Trading Limited Partnership, KCG began by importing Allowrie butter from Australia. Over the years, the company's business has experienced continuous growth.
KCG emerged as the leading manufacturer, importer and distributor of dairy products in Thailand, including butter and cheese.
The company also expanded its portfolio to include imported food ingredients and finished food products from around the world. Two of the company's best-known trademarks are Imperial and Allowrie, which are now household names.
Throughout its 65 years of operation, KCG has accumulated extensive expertise in the food industry.
The company has delivered more than 2,000 well-known food products to Thai consumers, showcasing its creativity, knowledge, capabilities and advanced manufacturing technologies.
KCG also played a vital role in the success of both local and international partners, earning recognition as one of Thailand's leading food organisations.
The company established a strong position in the dairy and food sector by consistently providing consumers with a wide range of products that adhere to high standards and exceptional quality.
KCG's offerings include products the company manufactures under the Imperial and Allowrie brands, as well as imported products from reputable overseas partners.
According to Mr Watit, the company's mission is not only to bring innovative products to the market, but also to enhance the level of the food experience in Thailand.
KCG has developed food creations that blend ingredients from different parts of the world, resulting in high-quality products that offer a diverse range of tastes and flavours, he said.
Mr Watit says KCG strives to create food innovations that align with changing consumer lifestyles.
"The company aspires to establish itself as a prominent provider of dairy and fine foods, aiming to be a market leader in the face of global challenges. To achieve this vision, KCG has made significant investments in state-of-the-art technology, boasts a highly skilled workforce, and developed enduring partnerships with esteemed international companies," said Mr Watit.
"The company's mission is to provide a complete range of products that are distinguished by their high standards and quality to fulfil the diverse demands of consumers."
Apart from providing quality products and strong brands, he said KCG also strives to create food innovations that align with changing consumer lifestyles, leveraging an efficient cold logistics chain system to ensure optimal temperature control and consistent quality, enabling the company to distribute its products across all channels nationwide.
"In addition to consumer trust in KCG's product quality, the company emphasises innovation and research at our development centre to create new products to cater to the diverse demand of customers," said Mr Watit.
"We have a team of dedicated chefs who create dishes and recipes that blend the art and science of food production, offering customers delightful options for their businesses."
KCG has three main product categories, which includes dairy products such as butter and cheese, with popular brands Allowrie and Imperial.
The company also sells food and bakery ingredients, including olive oil, processed food products, bakery products (such as cake flour, mixed flour and croissants), as well as concentrated fruit juice under the Sunquick brand name. KCG sells bakery and cooking equipment and produces cookies, crackers and wafers under the Imperial, Rosy and Violet brands.
According to Mr Watit, the company follows four key strategies to drive its business, including the expansion of capacity and implementation of technologies to enhance production processes. It also focuses on business customers in the food service, hotel, restaurant and catering industries, offering a comprehensive range of products and services.
KCG expanded into the business-to-consumer (B2C) market through various channels such as modern trade, supermarkets, online platforms and general trading shops nationwide, introducing new concepts such as "Beyond Dairy" to improve consumer engagement and drive consumption. The company is also seeking business opportunities to grow both organically and inorganically.
To cater to B2C consumers, KCG devised plans to broaden its services through online platforms, convenience stores and vending machines. This expansion aims to provide customers with convenient access to its products.
KCG also exports its products to 15 countries, including other Asean nations, Japan, South Korea and India.
As part of the company's sustainable growth strategy, it is exploring merger and acquisition opportunities and joint ventures to manage costs, enhance efficiency and improve supply chain management to increase competitiveness.
KCG acquired Indoguna Thailand in early 2022 to broaden its product portfolio, adding meats and seafood to complement its existing offerings.
The company has strategic plans to enhance its production processes and implement automation technologies to increase cheese and butter production capacity, while developing new products that align with future food trends, particularly plant-based options catering to the evolving needs of a "new normal" lifestyle. KCG aims to establish itself as a trendsetter in the industry, offering innovative and sustainable food choices.