Having recently topped all Thai firms in FinanceAsia’s 16th annual Asia’s Best Managed Companies poll of investors, the Bangkok-headquartered Thai Union Group (TU) continues to look abroad to expand its sourcing capability as well as increase export market penetration.
Rittirong Boonmechote, head of the seafood company’s shrimp division, recently announced that TU is evaluating prospects for joint ventures in Indonesia and Bangladesh, as well as looking for merger and acquisition opportunities. The effort to further diversify supply lines is being intensified following a downturn in domestic production of farmed shrimp caused by the early mortality syndrome (EMS) disease outbreak that has significantly reduced crop yields over the past several years.
An important step was taken in this direction last week, when TU announced that it would invest $19 million to acquire a 40% share of Avanti Feeds’ shrimp processing operation in India.
The sales value of frozen shrimp products, which accounted for 27% of Thai Union’s revenue stream in 2015, is projected to rise from $1.4 billion to $2.6 billion by 2020 to reach the company’s goal of doubling overall sales to $8 billion.
Commenting on TU’s No. 1 ranking among Thai enterprises in Asia’s Best Managed Companies poll of 129 portfolio managers and analysts, CEO Thiraphong Chansiri commented:
“I am very proud that Thai Union has gained the confidence and trust from investment analysts and investors for our work, particularly in corporate governance and corporate social responsibility. There were a series of projects related to these areas launched over the last year, including the rollout of our revised Business Ethics and Labor Code of Conduct.”
Meanwhile, the company was listed in Dow Jones Sustainability Indices Emerging Markets for the second year in a row as well as in the inaugural SET Sustainability Investment index.
