Singha restructures to support high growth target in five years
June 10, 2014 00:00 By The Nation 2,885 Viewed
Singha Corporation is embarking on its third organisational restructuring in over 80 years of doing business to tap new opportunities with strong potential and major business alliances.
The first was the switch from Boon Rawd Brewery to Singha Corporation, followed by the segregation of the alcoholic and non-alcoholic businesses.
Bhurit Bhirombhakdi, director of the non-alcoholic business division, said yesterday that the latest revamp will facilitate diversification into non-alcoholic food and beverages, such as rice and Thai foods, via mergers or joint ventures, as well as acquisitions of firms with strong future potential and prospects.
For example, Singha has entered into a 50-50 joint venture with Maruzen Tea, Japan’s top three tea producer.
It has also linked up with Bain & Co of the US – a leading management consulting company specialising in investment and market research. With its global and diverse business network, Bain can help Singha devise an effective marketing strategy.
Bain is negotiating with Japanese investors in the food and real estate industries. The goal is to help Singha double in size in five years, from this year’s target of about Bt110 billion-Bt120 billion and Bt100 billion last year.
Singha oversees 64 subsidiaries and affiliated companies in five main business groups – non-alcoholic, alcoholic, joint venture, packaging and real estate.
Funds to support expansion and investment will come from financial institutions. A family business such as Singha is not yet ready for public listing, he said.
Singha posted 15-per-cent growth last year. Its revenue for the first half of this year was below target with single-digit growth over the same period last year, .
The non-alcoholic business is expected to pick up by 10 per cent, or about Bt28 billion.