K-SME picks investment targets
K-SME Venture Capital Co is investing Bt78.2 million in two businesses with high growth potential - a honeycomb-paper producer and a full-cycle logistics provider - as part of its role to help small and medium-sized enterprises achieve sustainable growth.
Patchara Samalapa, an executive vice president of Kasikornbank, said yesterday that the bank established K-SME Venture Capital to invest in SMEs with growth potential that need capital for expansion.
The venture-capital fund is overseen by Khao Kla Venture Capital Management Co, which selects promising SMEs for investment. Among Khao Kla’s achievements is arranging for at least 13 SMEs to receive Bt250 million in assistance.
Two of them have listed on the Stock Exchange of Thailand and three are preparing to follow suit.
O & H Honeycomb Paper designs produces and distributes honeycomb paper, which is used as a packing material, with innovative product design and development while still being environmentally friendly.
The company seeks to become the leading domestic honeycomb-paper producer and exporter, so it is seeking funding for future expansion.
K-SME Venture Capital will invest Bt18.2 million in the company, which is equivalent to 40.99 per cent of its total registered capital of Bt44.40 million.
NCL International Logistics provides complete logistical services domestically and internationally, such as customs clearance and even product sorting and packaging. Its primary strategy is to reduce customers’ logistics costs.
Such services employing trailer-trucks have become a fast-growing business and will continue to be ahead of Asean’s integration in 2015 when Thailand hopes to become a logistics hub for both raw materials and finished products.
K-SME Venture Capital will invest Bt60 million in this company, which isequivalent to 18.46 per cent of its registered capital of Bt81.25 |million.
Patamaporn Chaiyakool, managing director of Khao Kla, said the company was formed in 2007 to manage funds for K-SME Venture Capital and help provide SMEs with funding choices beyond loans. SMEs receiving such support are among Khao Kla’s experts.
Continuing on its mission of offering alternative funding sources for expansion and also advising on business operations for SMEs, K-SME Venture Capital is planning to invest in three or four young SMEs to help them fulfil their potential.
