Thaifoods Group to invest billions in expansion and new stores

Thaifoods Group Plc (TFG), a leading chicken and pig producer in Thailand, has announced plans to take a position between three billion and 3.5 billion baht in increasing its enterprise this 12 months, with a selected concentrate on opening new stores.
Chief Operating Officer Phet Nantavisai acknowledged that 2 billion baht of the investment shall be allotted to the enlargement of the company’s retail business, aiming to open a hundred and eighty new branches of Thaifoods Fresh Market. This move is expected to deliver the entire number of TFG’s retail outlets to 400 by the end of the yr.
Research will cowl a 300 sq. metre area, requiring an investment of 8-10 million baht and employing 10-12 staff members. The majority of the model new shops might be situated in the northeastern, central, and decrease northern regions of Thailand, the place the market is currently much less competitive. TFG’s retail outlets offer a selection of products, together with chicken, pork, seasoning products, frozen food, and ready-to-eat and ready-to-cook meals at reasonably priced prices.
The remaining 1-1.5 billion baht of the investment shall be used to improve TFG’s present feed mills and expand via the institution of latest feed mills. Additionally, the funds shall be applied to extend the company’s breeder pig farms within the central area, overlaying provinces corresponding to Chai Nat, Nakhon Sawan, and Phichit. The investment finances will also include strengthening the pig supply chain and supporting its feed mill operations in Vietnam.
Phet Nantavisai highlighted the dangers that prime product prices, volatile uncooked materials costs, and unstable distribution channels pose to the livestock enterprise. TFG tackled these challenges by launching two Thaifoods retailers in Ayutthaya province in 2020. This transfer aimed to strengthen its provide chain, reduce production prices, and sustain gross sales, profit and distribution channels.
Before 2020, the rooster enterprise contributed to 40-50% of TFG’s sales, whereas pork sales attributed 20-30%. The remaining 20-40% was generated by gross sales from other products. However, as the Covid-19 pandemic affected each the export and HoReCa (hotel, restaurant, and catering) sectors, the company shifted its focus to opening extra retail outlets.
TFG’s retail business has now become an essential element of the company’s revenue, with an anticipated sales contribution of as much as 20% this year, or round 12 billion baht in worth. This is a rise from the 15% ratio in the earlier 12 months, which was worth 7.eight billion baht.
Phet Nantavisai described Thaifoods Fresh Market because the company’s new S-curve enterprise unit, which allows TFG to transition from a production-driven to a market-driven company. It is anticipated that there will be 1,000 Thaifoods Fresh Market retailers by 2026, with the retail enterprise expected to spice up income contributions to 30-40% in the future.
In the primary quarter of this year, TFG saw a 31% increase in its income, reaching 13.eight billion baht. This growth was driven by rising demand for hen, meat, and gross sales from retail outlets because of the recovering tourism and financial system..

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