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Thai billionaire's firm plans to tap large population in China and India

Thailand's billionaire business tycoons have stepped up acquisitions and investments abroad as an ageing population and increased competition dim the long-term domestic growth outlook

Anuchit Nguyen | Bloomberg 

Dhanin Chearavanont, senior chairman CP group. (Photo: Twitter @AfroRailBus)
Dhanin Chearavanont, senior chairman CP group. (Photo: Twitter @AfroRailBus)

Thai billionaire Dhanin Chearavanont’s retail subsidiary Pcl is considering an expansion of in and to tap the might of consumers in the world’s most-populous nations.

CP All’s Chief Financial Officer Kriengchai Boonpoapichart said the firm’s cash-and-carry unit Siam Makro Pcl is studying opportunities in the two countries, as well as the possibility of setting up a store in Myanmar, having already opened an outlet in Cambodia.

"Siam Makro is on a new journey of expanding in overseas markets,” Kriengchai said in an interview at his Bangkok office on Wednesday. “It will be a tough and challenging road, but it’s a good opportunity with large populations to tap, compared with Thailand’s mature market.”

Thailand’s billionaire business tycoons have stepped up acquisitions and abroad as an ageing population and increased competition dim the long-term domestic growth outlook. Earlier this year, Siam Makro said it had set up LOTS Wholesale Solutions in and planned to invest more than Rs 10 billion ($145 million) over five years.

Siam Makro intends to open its first store in soon and a second outlet in Cambodia, according to Kriengchai. acquired Siam Makro for about $6.1 billion in the country’s biggest-ever takeover.

"It’s a risky and large for Siam Makro to expand into new foreign territory," said Sasikorn Charoensuwan, the head of research at Phillip Securities (Thailand) Pcl. "It will take some time to break even as economies of scale come when many more stores are opened."

Shares of and Siam Makro have dropped less than 4 per cent so far this year, while the benchmark SET Index has slid about 8 per cent.

Dhanin, whose include telecommunication, agriculture and insurance businesses in Thailand, and other countries, has a net worth of $4.2 billion, according to Bloomberg Billionaires Index.

CP All operates more than 10,000 7-Eleven stores in Thailand, the most outlets after Japan, according to 7-Eleven Inc.’s website.

The company plans to spend about 9 billion baht ($271 million) a year to open at least 700 new 7-Eleven stores, said Kriengchai. It will also stock shelves with more health and beauty products to boost revenue growth per store, he said.

First Published: Thu, July 05 2018. 11:12 IST
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