Aquafeed producer Thailuxe Enterprises is planning to invest more than Bt600 million (USD 17.2 million) to expand into the energy business next year, whilst its revenue continues to grow at a rate of 40 percent in the aquafeed market.
This increase is due to a better performing shrimp market this year and the contribution from a new plant, according to company chairman Anurot Seneepakonkai.
The company currently produces feed for fish, shrimp and pets, produces frozen processed shrimp food products, and breeds and grows red tilapia. Feed is exported to Malaysia and Indonesia, while its frozen food is exported to the Middle East, Europe and Canada.
It is now planning to penetrate the renewable energy market, and expects the new business to contribute half of its revenue.
Currently, Thailuxe\'s feed business contributes 70 per cent of revenue, followed by frozen food at 20 per cent and fish farming at 10 per cent. Of the feed products, 60 per cent of the revenue is from fish feed, and 20 per cent each from shrimp feed and pet food.
\"The shrimp market was very poor last year, so we had to do something to keep the damage under control,\" said Seneepakonkai. The company plans to decrease the contribution of shrimp feed to less than 15 per cent and increase that of pet food to more than 25 per cent next year.
Thailuxe’s new feed plant, which opened recently in Songkhla province, has a production capacity of 13,000 tonnes of feed per year, the same as its existing plant in Phetchaburi province.
\"We are confident that the contribution of the new factory and the market recovery will result a 40-per-cent growth from last year,\" said Seneepakonkai. The company is targeting revenue growth of around 15-20 per cent in each of the next three years.
Source: The Nation