S Khonkaen eyes expansion of overseas sales
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S KHONKAEN Foods will further expand its international presence to boost local and foreign sales of its ready-to-eat food to Bt5 billion by 2017.
Charoen Rujirasopon, chief executive officer, said yesterday that the company planned to export to China and the Middle East this year.
It will also start franchising its Yunan restaurant in Thailand and Laos in the middle of this year.
It will embark on a new business focus – distribution centres and logistics.
Charoen was speaking after joining the celebrations with Bangkok Bank, which yesterday became the first financial institution in Laos to be granted a custodian licence for foreign investors.
S Khonkaen Foods sees potential and purchasing power in the CLMV countries of Cambodia, Laos, Myanmar and Vietnam.
Ready-to-eat food and restaurants will be the main products when it enters CLMV from this year to 2017.
This year, the company targets growth of 15 per cent in revenue from Bt2.1 billion last year, of which 90 per cent was from the Thai market.
Its main overseas markets are the United States, Europe and Asia.
In the first nine months of last year, the company earned net profit of Bt77 million on revenue of Bt1.6 billion.
The company has set a capital expenditure budget of Bt220 million this year, of which Bt200 million will be used to renovate its plant to boost production capacity to support its expansion target.
About Bt20 million will spent to open its 13 Yunan branches – 11 in Thailand and two in Savannakhet, Laos. It has currently 22 Yunan outlets, 20 in Thailand and two here in the capital.
The capex budget will be financed from internal cash flow, he added.
