Dusit Foods concludes agreement to acquirea 55%stake in Port Royal and Bonjour Bakery Asia to develop OEM modeland drive expansion of franchising business for increasedrecurring revenue.
New Delhi, June 02, 2022: Dusit FoodsCompany Limited, a wholly owned subsidiary of Dusit Thani Public Company Limited (DUSIT), has bolstered its food business portfolio in Thailand by concluding an agreement to acquire a 55%stake inPort Royal Company Limited, astate-of-the-art bakingfactory producing French-style pastry products, and itsassociated Bonjour BakeryAsia franchise business, comprising more than 50branches across Thailand and one branch in China.
The strategic upstream investment has been carried out in line with DUSIT’s vision to optimise food quality and production costs within the Dusit group, seize new opportunities for growth, and develop new streams ofrecurring revenue in food business.It will serve as a springboard to develop Port Royal’s OEM model to provide new B2B (Business to Business) services and expand Bonjour Bakery’sfranchise business domestically and internationally.
As part of the acquisition, Dusit Foods, Port Royal, and Bonjour Bakery Asia will establish a new joint venture namedBonjour Bakery Asia Company Limited to maximise synergies and drive sustainable growth.
“This strategic acquisition is the latest significant development in the continued evolution of our food business,” said Ms Suphajee Suthumpun, Group CEO, DUSIT. “Following our previous investment in NR Instant Produce Company Limited (NRF), which we sold to excellent returns as part of a strategic divestment when NRF was listed on the Stock Exchange of Thailand, we knew we would need to reinvest in the manufacturing side of food business to achieve our vision of standardising our products and optimising production costs for our food business overall. So, when the opportunity to invest in Port Royal and Bonjour Bakery arose,we did not hesitate. Not only will this investment help us tomeet the aforementioned goals, but it will also open many doors for potential growth – internally, externally, domestically, and internationally – and ultimately bring new recurring streams of revenue to our company.”
Ms Suthumpun said that Port Royal’s state-of-the-art facility in the Eastern Seaboard Industrial Estate (Rayong), equipped with the latest baking technology, plusits team of seasoned professionalsand established logistics and distribution network were key elements behind DUSIT’s decision to invest.
“In addition to employing advanced technology for maximum efficiency,Port Royal’sdistinguishing featureis its experienced team specialised in designing flexible production processes that can be easily adjusted and scaled,” said Ms Suthumpun. “Port Royal’s comprehensive logistics network also ensures goods can be swiftly and efficiently distributed to B2B customers nationwide, which offers excellent growth potential.”
To develop the investment and leverage the capabilities of Port Royal and Bonjour Bakery, Ms Suthumpun said DUSIT will focus on three key areas – 1.Product standardisation and cost optimisation, to support other businesses within DUSIT, including, amongst others, hotels and restaurants 2.Seizing opportunities to grow, by capitalising onPort Royal’s expertise and advanced manufacturing processesto create new high-end recipes and developOEM services for B2B customers; and3.Recurring revenue, by expandingthe BonjourBakery franchise model in Thailand and abroadand enhancing the marketing experienceto cover all segments(B2C).
“Withnormal life resuming and economic activities on an uptrend,we see huge potential for growth in the food industry,and we look forward to maximising our investment in Port Royal and Bonjour Bakery to the benefit of all stakeholders,” said Ms Suthumpun. “In line with our group-wide strategy for balance, expansion, and diversification, we will also continue to seek opportunities to grow, complement, and leverage our existing operationsto drive increasing returnsacross all our lines of business.”
DUSIT’s past investments in food business include Epicure Catering Company Limited, a leading provider of quality food services to international schools in Southeast Asia; The Caterers Joint Stock Company (The Caterers), a leading catering company for schools and events in Vietnam; and KAUAI, a global healthy restaurant chain from South Africa that has penetrated the Thai market as part of a joint venture with Dusit Foods.
Corporate Comm India (CCI Newswire)
