TCP Group, the manufacturer and distributor of Kratingdaeng energy drink, Mansome vitamin water and Sponsor, plans to invest 12 billion baht in its three-year business plan (2022-24) to expand business at home and abroad.
Chief executive Saravoot Yoovidhya said in light of the pandemic, digital disruption, mounting international conflicts and inflationary pressure, which have tremendously affected business, society and the environment, the company revised its strategies to prepare for a volatile future and to create growth for the organisation.
According to Mr Saravoot, under the three-year plan TCP Group will launch 10 new products under Kratingdaeng or Red Bull, both in Thailand and abroad.
He said the new products will include innovations, new tastes, formats and updates to brand images, making them more modern.
Apart from Kratingdaeng, the group wants to launch new brands in global markets, particularly in Asia.
The company plans to develop at least five new products, both energy drinks and non-energy drinks, by exploring unmet consumer needs targeting the health and wellness market, said Mr Saravoot.
He said of the budget of 12 billion baht, more than 50% will be used to set up its own energy drink factory in Sichuan, China, with a total capacity of 1.4 billion cans per year.
"China is one of our main markets with high growth potential as our brand has good recognition there among consumers," said Mr Saravoot.
"We chose Sichuan because the energy drink is popular in this location, while the government also supports foreign investment."
Some 20% of the budget will be used to upgrade its factory in Prachin Buri to become more automated, using artificial intelligence and data analytics, with the rest of the budget slated for improving its offices and transport process, he said.
In addition, the group plans to increase its organisational efficiency through digital transformation, applying various types of technology such as data management and analysis, as well as developing its personnel to grow using technology and promoting work-life integration, said Mr Saravoot.
"With our new strategies and two years of lessons learned from the pandemic, we are set to confront new challenges and changes in the future," he said.
The group is committed to creating a positive impact on the world through its carbon-neutral plan for all working processes by 2050, while packaging is expected to be 100% recyclable by 2024, said Mr Saravoot.
The group expects to double its revenue in 2024 to 90 billion baht. Of the total, 70% will be from overseas operations, he said.
Mr Saravoot said the company has no plans to increase the prices of its products to cope with higher production costs. He said the company prefers to offset higher costs by optimising current facilities, using smart manufacturing or using more electric trucks in the future.
