SET-listed Carabao Group (CBG), the maker of Carabao Dang energy drink, has teamed up with Kasikornbank (KBank) to invest up to 15 billion baht to expand Tookdee convenience stores.
Under the partnership deal, KBank will invest 5 billion baht in the debentures and warrants of TD Tawandang Co, the operator of Tookdee convenience stores, which is under Carabao Group.
The bank and Carabao Group also plan to spend 2 billion baht each to establish a new joint venture company called Kbao Co to provide comprehensive loan services, along with financial facilities worth about 8 billion baht for companies within Carabao Group and the group's customers.
Sathien Setthasit, chairman of TD Tawandang Co, said the company will use part of the 8 billion baht to build three new warehouses in Lamphun, Khon Kaen and Buri Ram to support Tookdee shops. Each warehouse requires a space of 50,000-60,000 square metres and should create 1,000 new jobs, he said.
In addition, the company plans to open a new warehouse in Nakhon Si Thammarat to support Tookdee shop expansion into the South next year.
TD Tawandang aims to have a total of eight new warehouses in the future, with a total investment of 24 billion baht.
According to Mr Sathien, also the founder and chief executive of Carabao Group, the collaboration between Tookdee stores and KBank will not only help bolster community purchasing power, but also strengthen Tookdee's service standards, giving store owners greater confidence while offering opportunities for those who wish to own a store. The move should encourage suppliers and manufacturers to become future partners, he said.
Tookdee's sales are expected to reach 20 billion baht this year, up from 5.8 billion last year, said Mr Sathien. With new stores and services including loans to customers, sales are expected to reach 60-70 billion baht next year, he said.
The company is keen to make Tookdee shops look more modern, serving as a "platform" or "network" that meets the needs of consumers nationwide, said Mr Sathien. Another goal is to link Tookdee shops with manufacturers and service providers such as financial services, couriers and agricultural commodities that residents in remote areas often find hard to reach.
"Tookdee shops should be solution providers that meet customers' needs and increase their convenience, leading to a simpler lifestyle for consumers nationwide. This cooperative effort with KBank is a key strategy in achieving the goal," he said.
Patchara Samalapa, KBank's president, said demand for financial services in rural communities across many provinces has been rising. However, many locals have no deposit accounts or lack proof of income, which prevents them from accessing funding sources. KBank also has no branches in these rural areas.
"Our cooperative effort with Carabao Group aims to develop Tookdee shops to be the centre of the community economy for everyone within the store chain, ranging from store owners to trade partners and local residents, providing them greater convenience for purchases and ease of access to financial services, including KBank loans. This move should generate greater income for local residents and advance the community economy," said Mr Patchara.
The bank aims to see Tookdee shops lead the community convenience store market and offer comprehensive banking and loan transactions, with around 30,000 stores to be operational by 2024.
