Bangkok--27 Nov--ABM
Osotspa Public Company Limited, led by Mr. Thana Chaiprasit (third from left), Vice Chairman of the Executive Committee of Osotspa PCL, and Dr. Sai Sam Htun (third from right), Chairman and Managing Director of Loi Hein Co., Ltd. and Director of Osotspa Myanmar Co., Ltd., recently presided over the groundbreaking ceremony for the construction of a new beverage production facility located in the Thilawa Special Economic Zone (Zone B) in Yangon. Mrs. Wannipa Bhakdibutr (second from left), President of Osotspa PCL, and Mr. Pratharn Chaiprasit (center), Vice Chairman of the Executive Committee of Osotspa PCL, also attended the ceremony to celebrate Osotspa's first facility in Myanmar that is being built to support the company's future growth.
Osotspa Public Company Limited (OSP), a leading Thailand-based consumer products manufacturer and distributor, and Loi Hein Co., Ltd., Myanmar's largest drinking water and beverage business, recently held a groundbreaking ceremony for the construction of a new beverage production facility located in the Thilawa Special Economic Zone in Yangon as part of the company's expansion strategy in Southeast Asia and to increase revenue from international markets.
Mrs. Wannipa Bhakdibutr, President of Osotspa Public Company Limited, said, "Osotspa has a strong vision and a focused strategy to expand our investments in Southeast Asia, particularly in major markets we view as having strong growth potential, including Myanmar, Laos, Cambodia, Vietnam, and Indonesia. Our move into Myanmar is based on the tremendous momentum in the country's retail sector, which is showing strong annual growth. As a result, Osotspa and Loi Hein Co., Ltd., our business partner in Myanmar, are jointly building a new beverage production facility to support our business expansion and meet the needs of customers in the country. This is our first production facility in Myanmar and will contribute to significant growth, allowing us to achieve our goal of being the leader in the energy drinks market in Southeast Asia."
The new beverage production facility is located on 83 rai (approximately 132,800 square meters) in the Thilawa Special Economic Zone (Zone B). It will be operated by Osotspa Myanmar Co., Ltd., a joint venture in which Osotspa PCL holds an 85% share and Loi Hein Co., Ltd. holds a 15% share. The project represents a total investment of 2,400 million baht funded by the proceeds received from Osotspa's initial public offering (IPO) which took place in October. Construction of the new plant is expected to be completed and ready for operations in the fourth quarter of 2019, producing Osotspa drinks for distribution in Myanmar. The new plant will allow the company to better manage costs by responding to market demand more quickly and efficiently.
"Osotspa's strengths as a market competitor and in product positioning allow us to perfectly meet the requirements of consumers, together with our comprehensive distribution channels and our well-established partner, Loi Hein Co., Ltd., with whom we have a longstanding business relationship. Collectively, this will support Osostpa's growth momentum in capturing a greater share of the retail energy drinks market in Myanmar, which currently stands at 38%. We expect this new facility to improve our gross profit margin after commencing commercial operations due to our increased manufacturing capacity. In addition, Osotspa will further expand our route-to-market and distribution channels to more effectively tap into consumer demand, while simultaneously implementing a strategy focusing on local marketing activities. We believe this will increase our market share and sales growth as planned, contributing to improved revenue in the future," concluded Mrs. Wannipa.
Photo: The groundbreaking ceremony for the construction of the new drinks manufacturing plant in Yangon's Thilawa Special Economic Zone.
About Osotspa Public Company Limited
Osotspa, a leading Thailand-based consumer products producer and distributor, was established in 1891 and listed on the Stock Exchange of Thailand (SET) in October 2018. Over multiple decades, Osotspa has continued to deliver a wide range of products through the use of advanced technologies with a clear purpose to enhance the livelihoods of consumers and society under the concept of "The Power to Enhance Life."
Osotspa operates in four major business segments consisting of: 1) Non-alcoholic beverages including energy drinks, sports drinks, ready-to-drink coffee and functional drinks; 2) Personal care products including baby care and women's beauty care products; 3) Supply chain services including production and distribution of the company's products to third-parties through joint venture agreements and OEM agreements; and 4) Confectionery and other businesses. Apart from domestic manufacturing and distribution, the company also distributes its beverage products in 25 countries.