TCP Group is embarking on a Bt10 billion, five-year regional expansion mission for its products led by the well-known Krating Daeng energy drink and Sun Snack snacks.
“Revenue from exports and international contributions will be increased dramatically by four times to about Bt80 billion in the next five years from Bt20 billion today,” chief executive officer Saravoot Yoovidhya said yesterday.
“This will make TCP Group one of Thailand’s top exporters in the field of beverage products.”
Saravoot is a son of Chaleo Yoovidhya, the group’s founder.
The group’s beverage brand |portfolio also includes Ready, Sponsor, Som Plus, Mansome and Puriku.
The focus is on Southeast Asia, especially the CLMV countries of Cambodia, Laos, Myanmar and Vietnam.
TCP targets increasing its annual sales threefold in five years to about Bt100 billion, including domestic revenue.
“For the overseas expansion, we will open at least one office or plant in a country every year in the next five years,” he said.
“We aim to make TCP Group a powerful ‘house of brands’, having local offices in other countries to help the group better understand the needs, habits and preferences of local consumers and to develop products that can even better meet their particular needs.
“It is our DNA to invest for the long term and try what’s never been done before, whether in product formulation or marketing or in terms of business models.
“We have a truly extraordinary opportunity to put a Thai company on the global map, and we believe the time is now to make this |major investment and leap to the future.”
Strong first half
TCP Group’s major subsidiaries are TC Pharmaceutical Industries Co, which is the main manufacturer of the group’s products; The Red Bull Beverage Co, which is responsible for the sales and marketing of the group’s products; TG Vending and Showcase Industries Co, which owns and operates vending machines for the group and other vendors’ products; and Durbell Co, which distribute the group’s products and other brands.
TCP Group’s first-half sales hit Bt14.6 billion and are expected to reach Bt30 billion for the full |year.
About 68 per cent of sales will come from Krating Daeng and 20 per cent from the Sponsor sports drink.
TCP operates two beverage plants in Thailand and three elsewhere in the region – one each in Indonesia, Vietnam and China - with more than one billion litres per year of total capacity.
The facility in Bangkok’s Bang Bon district produces concentrates for the group’s beverage plants as well as the joint venture facilities for the Red Bull energy drink in Austria.
The joint venture is responsible for the production and distribution of Red Bull beverages in Europe, the US and Asia.
The Thai plant in Prachin Buri takes care of all beverages.
“We are also committed to the growth potential of China where we also have a manufacturing operation,” Saravoot said.
“We are renovating our existing plant in China as well as reviewing the business model to fit in with the investment and market circumstances in the country.”
The five-year investment programme comprises three main initiatives – strengthening the |group’s management and staff, expanding and enhancing manufacturing and research and development, and growing its on-|the-ground presence in other countries.
TCP is upgrading its human resource capabilities through intensive training with a budget of Bt100 million over five years.
“We are enrolling the finest managerial talent and creating a high-performance culture that blends the Thai culture with the best of global practices.
“Many of our leadership team have learned global best practices as senior executives in multinational fast-moving-consumer-goods companies and they are now applying their skills to building a Thai company and Thai brands.
“Their skills, combined with the exceptional track record of our long-standing leaders, will further strengthen our organisation.”