Dusit Thani Plc (DTC) plans to enter the high-end food and drink business through a joint venture with NR Instant Produce Co (NRIP) to make premium products for the local and international markets.
Under the plan, DTC will set up Dusit Foods Co, a new subsidiary to leverage Dusit's experience in food and drink service. The investment approval process is expected to conclude by the end of the month.
Suphajee Suthumpun, group chief executive of DTC, said Dusit will invest 660 million baht in a 26% share of NRIP, which makes ready-to-cook meals, seasoning powders, dipping sauces, drinks and juices under multiple brands, including Por Kwan, Lee, Thai Delight, DEDE and Shanggie.
Based in Thailand, NRIP is working with local corporations and customers in Europe, the US, Australia and elsewhere to provide products.
NRIP has a dedicated team of expert nutritionists dedicated to continuous improvement.
"Dusit is keen on food and drink," Ms Suphajee said. "We are ready to capitalise on huge growth potential. With time, we hope to create a partnership with NRIP to develop a line of Dusit-branded, premium products for local and international consumer markets."
The investment forms part of DTC's three-pronged strategy for sustainable and profitable growth, which includes balance, expansion and diversification.
Ms Suphajee said the investment in NRIP is considered DTC's first investment in an entirely non-hotel-related business.
The latest announcement follows the launch of a mixed-use project in Bangkok last year. The project is set to become the new flagship Dusit Thani Bangkok.
Ms Suphajee said the investment in NRIP will strengthen DTC's investment portfolio and is in line with the company's long-term operating plan, which includes five approaches: efficiently manage existing assets and provide appropriate returns; expand hotel business in Thailand and overseas; diversify lines of business to mitigate risk; expand the customer base and enhance the brand image worldwide; and strengthen management and operating teams to expedite business expansion.
DTC's financial results for 2017 disclosed revenue of 5.57 billion baht and a net profit of 267 million baht, up 2.7% and 134%.
