Pattaya Daily News

21 June 2011 :: 09:06:01 am 55179

Plan to milk more profit from Thai dairy ops

Bangkok: Fraser & Neave Holdings Bhd, a food and beverage group, aims to double its dairy business in Thailand over the next five years as it seeks to expand in Southeast Asia.
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The group, 56.8 per cent-owned by Singapore’s Fraser & Neave Ltd, made RM866 million from its Thai dairy operations last year, which accounts for almost half of its entire dairies division revenue.

F&N chief executive officer Datuk Ng Jui Sia is confident of this because dairy consumption in Thailand and markets close to it – Vietnam, Laos, Cambodia (Indochina) and Myanmar – are still low.

“The consumption in Thailand is one third the Malaysian level while those markets (Indochina), we’re at the baby stage. In some markets we have no competitors,” he told Malaysian reporters in a briefing here in conjunction with the grand opening of the group’s plant in Rojana, 70km north of Bangkok.

The RM250 million plant was officially launched by Princess Maha Chakri Sirindhorn on June 17. It has a maximum output of 3.5 million cans a day and the largest of its kind in the region.

F&N Dairies Thailand is among the top five food and beverage companies in Thailand. It holds 71 per cent of the evaporated milk market, 41 per cent of the sweetened condensed milk market and 47 per cent of the sterilised milk market.

Its Thailand operations will also cover countries that have much more people than Malaysia, with a total population of about 200 million.

“We intend to get market share and introduce new portfolio. Market response to new products in both Thailand and Indochina has been very positive,” Ng said.

The group entered Thailand when it took over the Thai and Malaysian canned and liquid milk business of Swiss food and beverage giant Nestle in 2007 for RM310 million. It then invested in Rojana and completed the factory in 2009.

The state-of-the-art plant also has a lot of space for expansion. Its current maximum output can be doubled if it installs new production lines, Ng added.

Report  By: btimes

Photo : Internet   Category : Thailand News

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