Thai Union Group obtained a THB 1.7 billion (USD 50 million, EUR 47.2 million) loan for international expansion, and expects 15 percent revenue growth in 2017, according to one of its executives.
Thai Union is targeting 15 percent revenue growth to THB 150 billion (USD 4.3 billion, EUR 4.1 billion) this year, as the global seafood giant consolidates investments it made last year, said Rittirong Boonmechote, president of global frozen and related products for Thai Union, at a 7 April press conference, The Nation reported.
One of those major investments last year was a THB 19.9 billion (USD 575 million, EUR 542.6 million) stake in Red Lobster, which operates 754 seafood restaurants globally.
The USD 50 million loan from HSBC Thailand will help with additional international expansion, Boonmechote said. The supplier is planning on a budget of no more than THB 25 billion (USD 722 million, EUR 681.5 million) for new investments and mergers and acquisitions this year, he added.
Meanwhile, if the United States pushes for trade barriers against Thailand, Thai Union can export from its plants in other countries, according to Boonmechote.
“Our business strategy is to expand our portfolio overseas to balance our business when facing trade measures,” he said.
At the press conference, Thai Union introduced Qfresh, a new frozen seafood line, that it expects to produce THB 300 milion (USD 8.7 milion, EUR 8.2 million) in the first year and THB 1 billion (USD 29 million, EUR 27.2 million) within five years. A majority of Qfresh sales will be offline, but Bangkok customers will also be able to purchase them online and have them delivered.
“We see strong demand for frozen seafood in Thailand, with estimated total market value of about THB 20 billion (USD 755.9 million, EUR 545 million) a year. As a result we decided to launch our own brand to [cash in on] the demand in the market,” Boomnechote said.
