Saha expands with 3 new JVs

Yesterday the group’s Thai President Foods (TF), a manufacturer of instant noodles and biscuits, signed a joint-venture deal with Japan’s leading ramen-chain operator Kourakuen Holdings Corporation to form President Kourakuen Co Ltd.
Under the new entity, more Kourakuen ramen restaurant branches will be launched in Thailand.
TF owns 70 per cent in the joint venture, while the Japanese partner holds 14 per cent. The rest is owned by individuals. The move is in line with the TF board giving approval on June 15 to enter into the transaction.
 The joint venture, which will be registered today, will start operations in early September. The joint venture has registered capital of Bt25 million.
 Kourakuen (Thailand) has been in the Kingdom for a few years and has six restaurants. The joint venture will keep open two profitable branches, one in Bangkok and one in Sri Racha, Chon Buri province, while the rest will be closed.
 According to TF chief business development officer Petch Paniangvait, the joint venture plans to operate over 30 Kourakuen restaurant branches nationwide within five years that are expected to generate Bt540 million in total revenue per year. However, no branch will open this year.
 TF has also acquired a ramen noodle-production factory from Kourakuen, which the former will use to provide ramen under the joint venture. The new entity will focus on restaurant-chain management.
 Kourakuen Holdings president Tsutae Niida said that the company was keen to use Thailand as a springboard into the other Asean countries.
 TF chief executive officer Pipat Paniangvait said that TF had forecast revenue growth of 5 per cent for TF this year.
 Saha Group also yesterday signed a deal with Japan fashion-apparel company World Co Ltd to set up a joint venture, World Saha Fashion Co Ltd, with the former owning 51 per cent, to develop and distribute the World’s Takeo Kikuchi men’s products in Thailand.
Today Saha Group will ink a joint-venture deal with Mayflower Group of Malaysia to offer diverse and comprehensive tour services for tourists coming to Thailand.The joint venture with World has registered capital of Bt50 million and is expected to get off the ground late this year.
 Its establishment marks World’s first entry into the Thai market, which is the regional hub of the rapidly growing fashion market in Asean.
 The first store under the joint venture is expected to be launched early next year and World is discussing with Saha Group the possible location of that, said World Group CEO Kenji Kamiyama.