SET-listed Thitikorn Plc (TK), Thailand's leading hire purchase operator for motorcycles, has applied for a business licence to operate in Myanmar as it plans for regional expansion.
Thitikorn plans to set up a new subsidiary company -- Mingalaba Thitikorn Microfinance Co Ltd -- with registered capital of 200 million kyat (4.9 million baht) once it receives approval from the Myanmar government, said Thitikorn deputy managing director Praphol Phornprapa.
The new subsidiary is 99% owned by Thitikorn and aims to operate a microfinance business and other financial businesses in Myanmar, he said.
Myanmar is the third country in which it has invested, following Laos and Cambodia.
Mr Praphol said Myanmar is one of several countries Thitikorn studied and it believes the location has high growth potential because of a young, large population and the government's policy to attract foreign investment flows.
"Thitikorn is ready to invest in Myanmar and we have submitted a request for [a business] licence from the government. We are ready to start our operation once we receive the approval because we have prepared an office, work processes, and employees comprising both local staff and Thais," he said.
Initial registered capital for the subsidiary is 4.88 million baht, and Thitikorn plans to gradually increase its capital investment once the Myanmar business starts growing, said Mr Praphol.
Business penetration into Myanmar is part of the company's policy to develop regionally, in line with a goal to achieve 50% of revenue from outside of Thailand by 2020.
Thitikorn has seven regional branches: one in Laos and the rest in Cambodia.
Mr Praphol said the company's business operations in Laos and Cambodia had accelerated in terms of growth during this year's first half, with 65% year-on-year growth in Laos and 93% year-on-year growth in Cambodia.
