Weather New York, NY +84°F

Regions

Thai Mitr Phol To Invest ฿50.4 Billion For Business Expansion Eyeing The Global Leading Position

Close
(Credit: Udo Weitz/Bloomberg/Getty Images ) THAILAND - OCTOBER 23: Bags of sugar are stacked in a market warehouse in Bangkok, Thailand, on Monday, Oct. 22, 2007. Thailand, Southeast Asia's biggest sugar producer, will probably triple output of ethanol next year and sell the alternative fuel to China as surging crude oil prices boost its appeal, the deputy industry minister said. Bags of sugar are stacked in a market warehouse in Bangkok
April 5
11:11 AM 2016

Mitr Phol Group(MPG), the largest sugar and bio-energy producer in Thailand has announced budgeting ฿50.4 billion to invest in five major areas within 2020. The areas of focus are sugar, renewable energy, wood-substitute materials, overseas ventures and logistics.

Out of the total allocated budget, ฿28 billion will be spent in sugar business including development of facilities and water system. Another ฿15 billion will be invested in the renewable energy business. In addition to those, ฿3 billion has been estimated for producing wood-substitute materials, ฿3.6 billion for overseas business while ฿800 million for structuring the logistics system, reports The Nation, quoting Krisda Monthienvichien-chai, president and chief executive officer of MPG.

Around ฿8 billion out of the budget for sugar business will be invested considering the government's economic stimulus measures. The investment will be made with a view to help strengthening the grass-roots economy following government declared Pracha Rath strategy, according to a report published in Global News Magazine.

Presently, the sugar business contributes for 42.8% of the group's sales and service revenue. Meanwhile, energy business accounts for 17.8%, wood-substitute materials for 4.6% and logistics for 1.2%. Business in China provides 27.1%, in Australia 5.8% and Asean ventures 0.6%.

Krisda forecasts for a quiet challenging year in 2016 for the Thai economy. He considers uncertain global economic outlook and other factors challenging the Thai export, including the severe droughts hitting the agricultural sector as the major reasons behind his prediction, reports Xpress Newswire.

MPG's planning for business growth focuses on research, development and application of innovative technology. The group also intends to fully integrate agribusiness model aiming to improve production and management of sugar cane farming as well as related industry, narrates Krisda.

The Thai business conglomerate also recognizes the importance of strengthening sugar cane farmers' organization. Sugar cane producers appear as critical upstream production player of MPG's business supporting the national agenda to ensure stable and sustainable economic growth.

The planned support for Pracha Rath strategy is expected to include sustainable community development projects. The inclusion aims to expand the knowledge base while adding value to the raw materials available in the community. Research and development of community products in turn is believed to create jobs for a sustainable future.

The group is confident in generating sufficient business growth while becoming the world's leading sugar and bio-based industry in the coming future. Notably mentioning, MPG secures the largest sugar producer and exporter position in Thailand while retaining fifth largest position around the globe. The group also represents the largest bio-power and ethanol production plant in Thailand and Asia.

Mitr Phol Group has announced allocating ฿50.4 billion budget to be invested within 2020 in some select areas in a view to expand business. MPG's planning for business growth focuses on research, development and application of innovative technology. The investment plan is expected to help support government declared Pracha Rath strategy while transforming MPG as the world's leading sugar and agro-power producer. 

© 2019 VCPOST, All rights reserved. Do not reproduce without permission.
Tags
Share

Comments

Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics