SET-listed NR Instant Produce Plc (NRF), the producer and distributor of food from plant protein, plans to invest 2 billion baht in the e-commerce business in 2021-2022 in a move to boost sales to 5 billion baht in 2023.
Of the total budget, Dan Pathomvanich, NRF's chief executive, said about 300 million baht has been recently used to acquire Prime Labs, a vitamins and dietary supplement producer, and SOL Trading, an ingredient supplier for the bakery.
He said the remaining 1.7 billion baht will be used to acquire e-commerce business providers in the remaining five months of this year and next year.
According to Mr Dan, the company is likely to settle 2-3 deals worth a combined 400-500 million baht to acquire startups or SMEs that run their business via e-commerce platforms in the remaining months of this year.
As well, the company via its subsidiary Boosted NRF Corporation has already completed 80% of the due diligence to acquire WellPath, the producer of vitamins in the US, with the deal likely to be settled over the next two weeks.
The remaining 1.3-1.4 billion baht will be used next year, he said.
With WellPath and new e-commerce deals, NRF will extend its e-commerce business by importing products to sell in Thailand and the Asean market via e-commerce platforms.
He said Thai-made products with hemp ingredients will also be sold abroad via WellPath e-commerce platforms on Amazon and in Asean in the first quarter of next year.
Boosted by new acquisitions, the company recently revised its revenue target to 5 billion baht within 2023, from 3 billion baht earlier projected.
Of the total, 50% revenue will come from e-commerce business, with 20% from plant-based products and the rest from others including functional hemp products.
As of the second quarter, revenue from e-commerce contributed 11% of total revenue.
The proportion is expected to increase to 25% by the end of this year.
"It boasts a bright potential for our plant-based products because the EU is launching tax measures for products that release high carbon dioxide that impact global warming. Carbon footprint is expected to be taken seriously after the UN reports on global warming next year. If Thai manufacturers do not adapt to this, they will lose their competitiveness in the export market,'' Mr Dan said.
Mr Dan said plant-based products have started growing in the Thai market, as indicated by more than 40 new plant-based items in freezers of supermarkets compared with only 10 items three years ago.
He said the market of plant-based products in Thailand is expected to continuously grow by 100% per year.
"We also have an aggressive plan to market our plant-based products in the remaining five months of this year and ramp up exporting products similar to energy drinks to the US,'' Mr Dan said.
In a related development, Mr Dan said the company recently signed an agreement with PTT Plc to set up a new joint venture company next year to produce and market functional health products.
