Hotline: 1800 102 2007
X
Search Business Opportunities
Jul, 07 2018

Thailand’s 7-Eleven stores owner CP All to expand in India, China

Thailand’s billionaire business tycoons have stepped up acquisitions and investments abroad as an aging population and increased competition dim the long-term domestic growth outlook.

Thai billionaire Dhanin Chearavanont’s retail subsidiary CP All Pcl is considering an expansion of wholesale operations in China and India to tap the might of consumers in the world’s most-populous nations. CP All’s Chief Financial Officer Kriengchai Boonpoapichart said the firm’s cash-and-carry unit Siam Makro Pcl is studying opportunities in the two countries, as well as the possibility of setting up a store in Myanmar, having already opened an outlet in Cambodia.

“Siam Makro is on a new journey of expanding in overseas markets,” Kriengchai said in an interview at his Bangkok office on Wednesday. “It will be a tough and challenging road, but it’s a good opportunity with large populations to tap, compared with Thailand’s mature market.”

Thailand’s billionaire business tycoons have stepped up acquisitions and investments abroad as an aging population and increased competition dim the long-term domestic growth outlook. Earlier this year, Siam Makro said it had set up LOTS Wholesale Solutions in India and planned to invest more than 10 billion rupees ($145 million) over five years.

Siam Makro intends to open its first store in India soon and a second outlet in Cambodia, according to Kriengchai. CP All acquired Siam Makro for about $6.1 billion in the country’s biggest ever takeover.

“It’s a risky and large investment for Siam Makro to expand into new foreign territory,” said Sasikorn Charoensuwan, the head of research at Phillip Securities (Thailand) Pcl. “It will take some time to break even as economies of scale come when many more stores are opened.”

Shares of CP All and Siam Makro have dropped less than 4 percent so far this year, while the benchmark SET Index has slid about 8 percent.

Dhanin, whose investments include telecommunication, agriculture and insurance businesses in Thailand, China and other countries, has net worth of $4.2 billion, according to Bloomberg Billionaires Index. CP All operates more than 10,000 7-Eleven stores in Thailand, the most outlets after Japan, according to 7-Eleven Inc.’s website.

The company plans to spend about 9 billion baht ($271 million) a year to open at least 700 new 7-Eleven stores, said Kriengchai. It will also stock shelves with more health and beauty products to boost revenue growth per store, he said.

Comment
Related opportunities
  • Sports & Gaming
    About Us    Fitokids was established in the year 2016 as a..
    Locations looking for expansion Delhi
    Establishment year 2016
    Franchising Launch Date 2017
    Investment size Rs. 5lac - 10lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Casual dine Restaurants
    About: Gola Sizzlers is a well established authentic chain of restaurants..
    Locations looking for expansion Delhi
    Establishment year 2015
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Competitive Exam Coaching Institute
    About Us: Chennai RACE Coaching is an education industry in the..
    Locations looking for expansion Tamil nadu
    Establishment year 2012
    Franchising Launch Date 2015
    Investment size Rs. 30lac - 50lac
    Space required 5000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chennai Tamil nadu
  • HR & Recruitment
    About Us: SMVA Consultants is a MSME Certified. professional human resource..
    Locations looking for expansion West Bengal
    Establishment year 2013
    Franchising Launch Date 2018
    Investment size Rs. 2lac - 5lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater kolkata West Bengal
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities