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April 8, 2016

Thailand

Thai Union Eyes Shrimp Investments in Bangladesh and Indonesia

 

In a bid to reduce reliance on domestic sources of shrimp, Thai Union Group, Plc, is considering shrimp acquisitions and investments in Indonesia and Bangladesh.  The Thai shrimp farming industry is still recovering from the early mortality syndrome epidemic that hit it in 2013, cutting production in half, or more.

 

Rittirong Boonmechote, head of Thai Union’s global shrimp business, said in terms of supply, Indonesia and Bangladesh are interesting countries, so Thai Union is looking for mergers, acquisitions and joint ventures there.

 

Thai Union wants to generate $1.2 billion in revenue from new businesses over the next five years, and said it would focus on China, the Middle East and Southeast Asia.  It’s also seeking new acquisition targets after scrapping a $1.5 billion bid for USA rival Bumble Bee Seafoods in December due to USA government antitrust concerns.

 

Rittirong said Thai Union is targeting $2.6 billion in annual revenue from its shrimp business by 2020, up from $1.4 billion in 2015.  That’s part of a drive by the company to more than double overall revenue to $8 billion in 2020.

 

Shrimp contributes about 27% of Thai Union’s revenue, Rittirong said, while tuna generates about 45-50%.

 

Last week, the firm said it would spend $19 million to buy a 40% stake in the shrimp processing unit of India’s Avanti Feeds, Ltd.  After capacity expansion, Rittirong said, revenue from the shrimp joint venture in India should raise $100 million in 2017, up from an estimated $60-70 million in 2016.  The company plans to build a new feed mill to boost output to 80-100 metric tons a day next year.

 

Source: Bangkok Post.  Thai Union Eyes Shrimp Investments in Bangladesh, Indonesia.  Reuters.  April 7, 2016.

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