Patum Rice Mill and Granary Plc (PRG), the producer of Mah Boonkrong packed rice, has announced a business restructuring for the first time in a decade, adding food-related products and logistics as its new core business.
Somkiat Makcayathorn, PRG's chief executive and managing director, said the company has set aside an initial investment of between 1-2 billion baht and would be open to both business acquisitions and joint ventures in potential businesses in food-related products and logistics services which would support the group's supply chain system.
In terms of food-related businesses, the company has seen investment opportunities in plant-based food products, healthy ready-to-eat and function drinks, and food supplements.
The company expects to launch ready-to-eat, milk alternative, functional food, plant-based products and meals for sick people onto the market next year.
PRG expects to double the company's overall sales to 5 billion baht over the next five years. Half of the revenue will come from new core businesses and the remainder will be from existing core business -- packaged rice and food centres.
"Building another core business comes in line with the healthy trend and dynamic consumer needs. More importantly, Thai consumers have been consuming less rice and have turned to other alternatives such as non-rice healthy and functional menus," Mr Somkiat said, adding Thai people's average rice consumption is estimated at 78 kilogrammes per person per year at present, down from 120kg 20 years ago.
Under the business restructuring, the firm had already sold its restaurant business which was heavily impacted by the Covid-19 pandemic to Bangkok Anti-Aging Center.
Mr Somkiat said the firm still expects packaged rice to see organic growth in the long term.
"The return of foreign travellers after the country's reopening would help improve rice consumption in Thailand this year," he said.
With this opportunity, the firm will appoint agents for the first time to distribute its Mah Boonkrong packaged rice in each province from its current focus only on Greater Bangkok.
In a related development, the firm is allocating an extra 40 million baht to finance marketing activities to reach a wider, more diverse group of consumers. It aims to boost the market share of Mah Boonkrong rice to 9% in Thailand's 50-billion baht packaged rice market, up from 6% at present, and to become a top three leading packaged rice producer this year.
The firm will reinforce its Mah Boonkrong rice by hiring actor, Saksit "Tang" Tangthong as its first brand ambassador.
Mr Somkiat said the company has yet to have any plans to increase the price of its packaged rice although its operating costs have risen by 30%.
To offset declining domestic rice consumption, the firm plans to ramp up its markets overseas with new potential countries and regions including Saudi Arabia, Australia and Eastern Europe.
PRG expects to maintain its revenue at over 2 billion baht this year. Of the total, 80% will come from the rice business with the remainder coming from food centres and others.
"Due to the weak baht, the portion of sales in overseas markets has increased to 35% of the company's total revenues at present, up from 25% in 2021. However, the company would like to see the baht become more stable at 33-34 baht per US dollar," Mr Somkiat said.
