"NR Instant Produce Public Company Limited (NRF)", leading manufacturer and exporter of food and condiments, announced capital increase in "Boosted NRF Corporation" from US$7 million to US$17 million in order to invest in branded e-commerce on amazon.com by procuring assets in the Prime Labs brand, producer of supplementary food for men, whose sale in this category is No. 1 on the website. This is to boost the Company's revenue share from e-commerce to 30 percent within the next three years. The Company also announced that the revenue target of 3,000 million baht by 2024 may be realized earlier than forecast.
Mr. Dan Pathomvanich, Chief Executive Officer, of NR Instant Produce Public Company Limited (NRF), the manufacturer, procurer and distributor of condiments, processed food, ingredients, vegan food without eggs and dairy ingredients, protein-based food, ready-to-cook and ready-to-eat food and drinks in the forms of powder mix and liquid, as well as non-food consumer products contained in V-shape packages, revealed that the Company recognizes the potential of e-commerce which is the platform for the online marketing venue that has been growing in tandem with the current consumers' behavior as evident in the constant increase in the volume of online transactions. One major supportive factor for this phenomenon is the COVID-19 pandemic. This is reflected in the continuously increasing launches of new businesses on e-commerce channels with amazon.com holding a market share of 38.7 percent in the American e-commerce market. The book value of amazon.com also increased significantly during 2016-2020 from US$500 million to US$3,000 million in 2020 as it continues to appreciate.
Most recently, the Company announced the investment increase in "Boosted NRF Corporation", which is a joint venture between NRF Consumer Company Limited, an NRF subsidiary, holding a 55-percent share, and Boosted Ecommerce, Inc. of the United States holding the other 45 percent, with the intention to invest in branded e-commerce business on amazon.com with the emphasis on investment in products in the categories of ethnic food, plant-based food and functional products. The selection process will take into account the competitive ability while the products must have good sales volume on Amazon's e-commerce platform and are capable of producing sustainable returns. With the clear selection criteria with the aim for the utmost benefit, the Company has decided to increase the investment budget to US$17 million (508.8 million baht), from previously planned US$7 million (209.5 million baht) for the acquisition of the business.
The Company saw the opportunity to acquire the assets under the Prime Labs brand engaged in the supplementary food business for men 45 years and older that has been No. 1 in sales on amazon.com. This move will allow NRF to seamlessly create an online community through the existing customer base numbering more than 200,000 to leverage the existing businesses particularly the products under the NRF brand on e-commerce platform that has helped to increase revenue continuously. In addition, the move will serve as a launching pad for future investment plans, such as becoming an OEM manufacturer as well as expanding the plan for the V-shape business. It is expected that the revenue from this additional investment will be realized as from Q1/2021 onward and will help to boost the Company's revenue by no less than 15 percent.
Meanwhile, for the 2021 performance, the Company set the growth target at 20 percent higher than 2020 when the revenue from sales was 1,408 million baht as derived from growth of three business groups especially the plant-based food group whose contribution is expected to be about 15 percent, increasing from last year's 8 percent, following the rise in popularity among consumers in the US, Europe and Asia. In addition, the Company will start to realize revenue from sales through e-commerce channel on amazon.com in this first year. The Company also has plans to invest in new businesses and to look at M&A (merger and acquisition) opportunities that will help NRF to expand the product lines in the future. These plans are expected to support the revenue target to hit the 3,000 million baht milestone faster than previously forecasted for 2024.
Furthermore, the Company has a plan to propel the organization towards the target of building quality teams with specialized expertise throughout the world by leveraging the e-commerce platform with the aim to access the main consumer groups. The three-year target is to achieve revenue from e-commerce business at 30 percent of the total revenue and to collect the "NRF Online Community" with the databank to be used in the development of products that will perfectly match the consumers' needs along with the vision to see plant-based food becoming a regular part of meals in every consumer's household in order the change the food chain system and promote sustainable Earth. In addition, the Company is studying possible investments in other related e-commerce businesses that could materialize soon. Targeted companies for M&A must have EBITDA of at least US$300,000 to US$3 million and the purchasing price of such a business must not exceed 3.5 times the initial investment. Such M&A moves would result in the accelerated growth of NRF.
The Company has a plan to issue debentures for sale with the total amount not exceeding 2,000 million baht. The plan will be tabled for consideration and approval at the 2021 Annual General Meeting. The intention is to use the cash raised from the debenture issuance for business operation and/or business expansion and/or working capital, or other purposes deemed appropriate by the Company. The interest rate of the debentures will depend on the market condition at the time of the issuance with the process to be fully compliant with the rules and regulations set by the Security and Exchange Commission (SEC).
The 2021 Annual General Meeting is set for April 22, 2021 at 2.00 p.m. at Pimanman Room, Anantara Siam Bangkok Hotel, or through E-AGM. The record date for the roster of eligible shareholders is on March 29. 2021.