Forth Smart Service Plc (FSMART) and Sabuy Technology Plc (SABUY) have expressed confidence that the joint venture the two formed will strengthen their positions in top-up machine operations with a combined 200,000 machines, create business synergy and drive future businesses together.
The joint venture with a 50-50 investment by the two firms has a registered capital of 20 million baht.
Pongchai Amatanon, executive chairman of FSMART, said the joint venture is part of the firm's plan to expand its business frontier and bring new products and services to serve the group's ecosystem.
The joint venture could also bring new users into the firm's ecosystem, which could support cost control, boost economies of scale and ensure the growth of both companies, he said.
Synergy through the joint venture would yield benefits regarding top-up machines, payment system, vending machines as well as new ventures, he said.
"The joint venture will start operation by the end of this month and benefits to the two parties could be seen by early 2022," he said.
According to Mr Pongchai, Sabuy will buy 4,600 vending machines from Forth Vending Co, a subsidiary of SET-listed Forth Corporation, the parent firm of FSMART.
The joint venture will work together to forge new businesses in the future and support business synergy between the two firms, such as using sales and marketing channels from both companies to promote financial services, lending business, petrol vending machines and insurance brokerage business.
The joint venture will also provide vending machine maintenance services and expand channels for financial and payment services as well as broaden service points for charging services for electric vehicles.
The two companies via the joint venture will also look for new businesses, such as call centres and debt collection.
Chookiat Rujanapornpaje, chief executive of Sabuy, said his company currently operates 57,000 Term Sabuy Plus top-up machines, 5,600 vending machines as well as food court systems at 231 locations.
It also has 4,040 Shipsmile shops and 170 shops of Plus Express for postal services.
He said the synergy of the two firms would create benefits through cross-operations, especially the combined 200,000 top-up machines operated by the two parties across the country.
Sabuy is ramping up efforts to increase the number of vending machines to 10,200 so as to become a market leader in the segment, he said.
Sabuy will also support FSMART's automated cafe machines to be in service in Sabuy's areas in its business ecosystem, such as parcel drop-off points, numbering more than 4,000 nationwide.
