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Wednesday, 2 November 2022, 14:00 HKT/SGT

Source: Asian Alliance International PCL
AAI seeks global market presence for pet food, packaged human meals with IPO-funded expansion

BANGKOK, Nov 2, 2022 - (ACN Newswire) - Asian Alliance International PCL (AAI) has become the first pet food and packaged human meals producing firm to debut on the Thai bourse on 1 November. The trading inauguration of AAI shares in the agricultural and food industry groups on the Stock Exchange of Thailand (SET) marks a momentous event for the company to bolster the capital to support its major expansion.

With its strong business fundamentals, AAI is confident of enthusiastic response from investors and allowing the company to level up its business internationally, tapping market opportunities arising from the growing Pet Humanisation trend, and actively creating products for the sustainability of the world.

AAI's Managing Director, Aekarat Punnasung said the company's strength as a leading manufacturer and distributor of pet food and leading ready-to-eat human food products in the country bodes well for good reception by investors who are looking for stocks in industries that are defying economic doldrums.

AAI is focusing on research and development (R&D) to respond to the needs of customers and consumers that are constantly changing.

With the expertise, experience, and readiness of personnel of product research and development department, AAI has gained trust from brand-owning customers to elevate its status from being a 'co-developer' to 'strategic partner' as well as to increase business opportunities and strengthening the competitiveness of the company in the long run.

He stated that AAI is poised to expand its pet food business into the consumer market to strengthen the competitiveness in the marketplace and maintaining the company's profit margin in the long run. The company will develop a variety of pet food brands of its own to cover the needs of customers in every sub-market segment. Those pet foods come in the forms of wet, pellet and snack.

At the same time, AAI will place importance on marketing and publicizing to create brand awareness and enhancing the brand image of the product to a wider audience. That goes hand in hand to increasing distribution channels in the country by focusing on expanding the market through pet shops and large modern trade stores. AAI's products are sold in more than 500 stores nationwide and the company is striving to make its products a world-class brand.

The CEO noted that AAI aims to generate not less than 6.4 billion baht in revenue this year, up from 5,036 million Baht last year. Such growth is in line with the increasing demand for pet food, driven by the popular trend of raising animals like family members, or pet humanization, where pet owners are prepared to pay for products and services so that their pets have a good quality of life and being happy.

After being listed on the SET, AAI will be pursuing a business expansion plan to create continuous growth as follows:

1. To nearly double wet pet food production capacity in Thailand by about 40,000 tonnes per year from the current annual maximum level of 42,000 tonnes. The expansion will be carried out in stages from the end of 2022 to 2025 and costing at least 1.6 billion baht in investment with about 600-700 million baht deriving from this fundraising and the rest from loans from financial institutes and cash flow from operations.

2. Constructing the second automatic warehouse within the year 2023 with an expected investment of 400-500 million baht that can handle at least 15,000 - 20,000 pallets of goods.

3. For repaying short and long-term loans in the amount of not more than 700-800 million baht within the fourth quarter of 2022.

4. Using as working capital for business operations

Taweechai Tangthanasup, Head of Investment Banking Capital Market at TISCO Securities Company, which acts as a financial adviser and underwriter of AAI, added that because AAI is the first firm that engages in pet food business to get SET listing has made it appealing to institutional investors and retail investors during the past IPO subscription period.

He said "AAI is regarded as a company with strong business fundamentals and potential for future growth. In addition, AAI takes the sustainability seriously under the CHEERS strategy, being one of the key elements for sustainable development and growth."

Under that concept, the company will grow sustainably through responsible operations in all business processes, from obtaining quality raw materials from sources that do not conflict with sustainable development guidelines and can be traced back through efficient production processes.

In addition, AAI attaches importance to good corporate governance and social and environmental responsibility. AAI is committed to treat business partners equally and fairly as well as arranging the supplier evaluation in order to develop sustainable business operations with each other in order to be in line with the direction of sustainable development of the world and expectations of all stakeholders.

Released for Asian Alliance International PLC by MT Multimedia Co Ltd
Thiyaporn Sriadunphan (Dah), T: 66 (0)87-556-6974; E: thiyaporn.s@mtmultimedia.com

Topic: Press release summary
Source: Asian Alliance International PCL

Sectors: Food & Beverage
From the Asia Corporate News Network

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