Technology has already disrupted many businesses. But for Takaso SC Thailand Co, the producer of ready-to-eat meals from Malaysia, it sees technology as a boon rather than a threat and is embracing it in response to Thais' changing lifestyles.
The company officially launched Chim Doo, the new ready-to-eat meal brand in an airtight container, in the Thai market last week and is scheduled to introduce innovative products via modern retail channels next month at Home Fresh Mart, Villa Market, postal services and online channels.
"We have been preparing for this project since 2013 and believe it is the right time to launch our products to the market in response to Thais' lifestyle, as many have limited time, love convenience and enjoy outings," said Kingsley Chin, the company's managing director.
"There is huge room to expand ready-to-eat meals in Thailand, particularly those with technology similar to Takaso's. The market size is expected to be about 80 million baht per year. There are a few brands available in the market so far, including Eat Smart and Pumpui."
Takaso SC Thailand, a wholly owned subsidiary of Lay Hong Berhad, one of Malaysia's leading integrated livestock companies, was founded in November 2013 with registered capital of 20 million baht.
Lay Hong Berhad is the manufacturer and distributor of basic daily necessities, speciality chicken eggs, liquid eggs, chilled and frozen dressed chicken, chicken parts and processed related chicken products such as frankfurters, nuggets and fried chicken sold under two registered brands, Nutriplus and Wise Choice.
It is one of Malaysia's leading distributors of fresh eggs and processed chicken products, comparable to Charoen Pokphand Group in Thailand. The group has also ventured into the community retail supermarket business in the suburbs of Sabah in East Malaysia, operating 13 stores under the trade name of G*MART.
As Thai food becomes more popular internationally, Lay Hong Berhad has recognised a business opportunity and spent 150 million baht to establish a factory in Sadao district, Songkhla province, under Board of Investment promotions to produce convenient and safe packaged food for both domestic and export markets.
Modern technology is used to preserve flavours to taste freshly cooked food for consumers. The packages are convenient for carrying.
The factory has a production capacity of 9,600 pouches per day.
"We have a hero product that nobody has in this market. We believe there is huge room for Chim Doo to grow here," Mr Chin said.
Eight Chim Doo products are scheduled for the local market in the next few months, such as hot and spicy curry with chicken, panang chicken curry, chicken tom yam and massaman chicken curry.
Chim Doo products are available in two types -- curry in aluminium pouches and rice with curry -- that are heat and eat, priced 35 and 89 baht, respectively.
Mr Chin said Chim Doo products are suitable for Thais who love convenience.
"With our technology, customers have a meal in only one minute, without using electricity or water," said Mr Chin.
The company plans to spend some 5 million baht for promotion in Thailand and expects to gain sales of 50 million baht from Chim Doo products in the first year of operations.
Yap Chor How, Lay Hong Berhad's group executive director, said during his visit to Thailand last week this is the first time the group is expanding overseas.
"We've chosen Thailand as the first country in which to expand our food business because it is recognised as the world's kitchen provider. The population is very big, with 70 million people, and millions more coming in as tourists," Mr How said.
Thailand is projected to be the production base of Lay Hong for export-ready meals to Malaysia and overseas, he said.
Mr Chin said the company plans to allocate another 100 million baht to install more machines at its factory in Songkhla next year, expanding production capacity of prepared meals by three times from 9,600 pouches per day.
The additional capacity will support future expansion for both own brand and products as an original equipment manufacturer.
"We expect Chim Doo to become the largest ready-to-eat meal brand in Thailand by 2020," he said.
In addition to Chim Doo ready-to-eat meals, the company plans to launch new products under the Lay Hong group in the Thai market in the third quarter of next year.
Takaso SC is also interested in expanding into Thailand's retail business next year.
"Thailand's retail market is very competitive. We will start our supermarkets step-by-step to begin distributing our own foods next year," Mr Chin said.
