Thai fish feed company looks to expand overseas operations
Following its recent stock market debut, Thai Union Feedmill PCL, has expressed confidence in its plans to expand its reach into the overseas aquaculture feed market.
The Asian fish and animal feed manufacturer has been making aquaculture, frog, and livestock feed for more than 20 years. It will rely on joint agreements and cooperative ventures with trading partners to push its agenda, according to a company press release.
Earlier, this week, Thai Union Feedmill was listed with the Stock Exchange of Thailand (SET). The company began trading under the symbol TFM.
Bunluesak Sorajjakit, chief executive officer of TFM, said he is confident that the initial public offering will attract widespread interest among investor.
Starting this year until 2023, TFM will use the proceeds from the sale of share in the following activities:
- Expand production and distribution of aquaculture feeds through Indonesia-based subsidiary TUKL by adding two lines of production, which will increase capacity by 36,000 tons per year, requiring an investment of no more than 250 million baht (US$ 7.4 million) by 2023
- Repay loans of between 250-350 million baht ($7.4 million to $10.4 million) by March 2022
- Use the remainder as working capital
TFM has an agreement of technical cooperation with Avanti Feeds Limited, India’s major shrimp feed producer. The agreement allows the Indian firm to use TFM’s trade name and feed formulae to produce and sell shrimp feed in India.
TFM has also joined with strategic partners to form PT Thai Union Karisma Lestari Co., Ltd. (TUKL), a subsidiary to produce and distribute aquaculture feeds in Indonesia. The two strategic partners are PT MSK, a major producer of frozen seafood in Indonesia, and Avanti.
The Thailand-based aquaculture feed company also formed a strategic partnershio with AMG, one of pakistan’s leading producer of aquaculture feed.
TFM formed a joint venture AMG-Thai Union Feedmill (Private) Limited (AMG-TFM) with a strategic partner in Pakistan. The Pakistani partner AMG is the country’s major producer of aquaculture feed.