August 28, 2007

 

CP subsidiary invests US$9.1 million to boost processed foods capacity

 

 

Thailand's CP Retailing and Marketing a subsidiary of the CP Group of Companies, is spending THB 300 million (US$9.1 million) to build a processed food plant that would boost its capacity in this sector by 50 percent next year.

 

The plant would manufacture convenient chilled-foods for both domestic and overseas markets. Dishes are being market-tested now and should hit shelves early next year.

 

The company is already the country's largest dim-sum manufacturer and distributor, with total production of 12,000 tonnes a year.

 

Company assistant vice presi-dent Charoen Kaowsuksai said the company wants to capture more teenagers and modern consumers who prefer 'finger foods' that can be eaten "on the run".

 

CP Retailing and Marketing is a subsidiary of CP Seven Eleven, providing the stores with ready-to-eat meals.

 

Charoen said the new production line would boost export sales, too. Its products are sold globally. The biggest sellers are dim sum and other frozen meals.

 

The company would attempt to increase sales in Indochina, especially Vietnam, due to the rising purchasing power in the country.

 

The move abroad is part of efforts to reduce risks from a volatile exchange rate.

 

The company hopes exports will increase to 50 percent of all sales, from the current 45 percent.

 

Premium lines are exported while domestic sales focus on medium- to high-end products, the company said.