CPRAM Co, a food manufacturer under the Charoen Pokphand Group, the country's biggest agribusiness conglomerate, has resumed its investment this year, allocating 2.6 billion baht to build a new bakery factory in Chon Buri which is scheduled to open in June of next year.
Managing director Wisade Wisidwinyoo said the investment in the new factory was postponed from last year because of the pandemic.
The factory is now under construction on a 10-rai plot of land located in the Pinthong Industrial Estate in Chon Buri province.
It has a production capability of 1.2 million pieces per day and would be well positioned to support growing demand in the company's bakery business over the next three years.
Mr Wisade said the factory would produce fresh bakery items mainly focusing on customers in the eastern region. The factory will also produce frozen dough to supply to customers in all regions nationwide.
Currently, CPRAM operates 15 food factories nationwide in six provinces. Five of them produce bakery products. Four of these are based in Lat Krabang and the other is in Khon Kaen.
In addition to the bakery business, Mr Wisade said the firm is considering building a new factory to produce ready-to-eat food in Thailand. He suggested the production capacity of the firm's existing factories is likely to be fully utilised over the next two years. The scale of investment in this plant would be about 1.5-3 billion baht. The investment plan would be decided this year, with construction expected to start over the next 2-3 years.
CPRAM now operates six ready-to-eat food factories. Two are based in Pathum Thani, while the others are in Chon Buri, Lamphun, Khon Kaen and Surat Thani, respectively. The factories produce 1.8 million boxes of ready-to-eat meal boxes per day and 4 million pieces per day for dim sum and other foods.
"We still believe the ready-to-eat food market will continue to grow in the future. This is thanks to modern consumer lifestyles," said Mr Wisade.
CPRAM reported its sales fell 3% in 2020 to 19.37 billion baht. Up to 95% of its products are sold at 7-Eleven convenience stores. Around 3% are sold via other store channels, while 2% is exported.
"This year, we expect the world's economic turbulence as a result of the pandemic to persist, but the impact is likely to subside from the third quarter of 2021 onwards.''
Mr Wisade expects CPRAM's sales in 2021 to rise by 10% to 21.3 billion baht.
With Thai society and other societies around the world now moving towards the consumption of health foods and environmental conservation, the firm has developed "VG for Love'' plant-based menus to capitalise on the trend. At present, 10 VG for Love menus are available via a 7-Eleven online channel and at five Makro cash & carry stores.
The firm aims to sell VG for Love menus at 7-Eleven stores next month. It expects 100 million baht in sales from these menus in 2021. Sales are expected to reach 500 million baht and one billion baht by 2022 and 2023, respectively.