THAILAND - Thai Beverage has set aside an investment budget of more than Bt30 billion (S$1.18 million) for 2015-20 to boost total revenue by nearly Bt700 billion in 2020.
This is a part of the group's goal to become a total beverage firm in ASEAN by 2020. The investment budget does not cover investments for mergers and acquisitions in both domestic and overseas markets, and building brands in the region, group president and CEO Thapana Sirivadhanabhakdi said at a press conference on "ThaiBev Vision 2020", yesterday.
"We cannot fix the amount for overall investment beyond 2015-20 because that would depend on business opportunities. However, the group has set aside an investment budget for maintenance of our manufacturing plan and also invest in the latest technology for our plants averaging Bt5 billion a year from 2015-20. Whether investments for mergers and acquisitions will exceed this amount would depend on the business deal," he said.
"Our vision in 2020, not only focuses on the Thai market but we want to be market leader in beverages in ASEAN by targeting overseas revenue not less than 50 per cent of total revenue in 2020," he added.
To drive the group's vision to be a market leader in beverages in ASEAN, the group has to focus on five business strategies.
The first strategy is drive double-digit growth of 12-15 per cent a year.
ThaiBev reported total revenue of Bt160 billion and net profit of Bt19 billion at the end of 2013, dropping 8.57 per cent and 33 per cent respectively from 2012.
To drive business growth, the second strategy would involve diversifying to cover all categories in the beverage market, especially non-alcohol products that generates total revenue less than 50 per cent of total group revenue.
At present, non-alcohol products generate revenue accounting for about 25 per cent of the group's total revenue, which includes non-alcohol beverage from Fraser and Neave (F&N).
Thai Beverage recorded total revenue of Bt81.06 billion and net profit of Bt11.41 billion in the first half of the year, up 6.68 per cent and 37.27 per cent respectively from the same period of last year.
Up to 64 per cent of total revenue came from spirits, 21 per cent from beer, and the rest 15 per cent from non-alcohol and food business.
The third strategy is to build global brands, especially in ASEAN.
"Our target is to have all our products rank among the top three brand leaders in Thailand and ASEAN," he said.
They are product brands from Thai Beverage, Serm Suk, Oishi, and F&N, which include spirits, beer, and non-alcoholic products.
At present, Chang beer ranks second in the Thai market. The company wants to make it the market leader in 2020.
The group also plans to take over other beer brands in ASEAN under its six-year plan beginning 2015, he said.
The fourth strategy is to make products that meet customer demand in all categories. The fifth strategy is to have professional management at all its businesses.