Kasikornbank in 3 joint ventures

It is now looking for more SME partners in the third quarter with Bt60 million in venture capital.

Its subsidiary Khao Kla Venture Capital Management was established last October to select SME partners and manage venture capital while another subsidiary, K-SME Venture Capital, takes care of financing.

Of more than 40 SME applicants, three were chosen.

According to Prasarn Trairatvorakul, president of Kasikornbank, one of the three firms it picked was Nirvana Foods & Commerce International that produces coffee for export to the United States.

It injected Bt30 million into the venture, which represents 15.38 per cent of the company's capital of Bt195 million.

The second company was Humanica, which outsources service providers in IT/software.

It is also provides human resource management systems.

Its products can be used to substitute for imported ones. They were seen as being more suitable for Thai firms as well as cheaper. It was considered to have high growth potential.

K-SME Venture Capital has invested Bt8.97 million in the firm, comprising 15.60 per cent of its total shares.

The third SME is 2Spot Communication that develops and designs characters for licensing to companies. It also sells its own products.

There are currently 10 popular characters made by the company in the market.

The firm is planning to expand overseas.

K-SME Venture Capital has invested about Bt5 million with the firm, representing 20.17 per cent of its Bt20.67-million capital.

Pattamaporn Chaikoon, managing director of Khao Kla Venture Capital Management, said it plays many roles in selecting the ventures.

It surveys potential companies in need of capital to expand.

Once the applicant meets its requirements, it will need approval from two boards before due diligence is conducted.

"We don't focus only on Kasikornbank customers but on businesses and executives of companies that show credibility. They should have at least three years of experience," Pattamaporn said.

"Once we invest in them, they also become our customers."

Soontorn Dentham, managing director of Humanica, said he formed the joint venture to locate capital to pay for research and development, form a strong base and forge key alliances.