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PTT Oil and Retail Business Plc (OR) said on Wednesday it will form a joint venture (JV) with Thailand’s oldest brewery and the maker of Singha Beer, Boon Rawd Brewery, to offer ready-to-drink products.
The new joint venture will be established by OR’s subsidiary Modulus Venture Co Ltd and Boonrawd Trading Co Ltd, with each owning 50 per cent of the company.
OR’s chief executive Jiraphon Kawswat said the goal of this JV is to manufacture and distribute ready-to-drink products, while the transaction of OR’s investment will be no more than 210 million baht.
The JV is expected to complete its registration by the third quarter of 2022, according to Jiraphon.
OR is the retail arm of Thailand’s national oil and gas conglomerate PTT Group, operating over 2,000 gas stations across the country. The company posted better-than-expected earnings in the first quarter of 3.8 billion baht, a rise of 63 per cent from the previous quarter.
The company also runs around 3,700 of Café Amazon outlets as part of its non-oil businesses.
“Enhancing the food and beverage sector is one of the company’s strategies to serve integrated lifestyle options,” said Jiraphon. Mentioning Café Amazon, she plans to develop the beverage business from upstream to downstream.
“Collaboration with Boon Rawd, a beverage industry specialist, will broaden the range of products and distribution channels,” she added.
OR shares traded at 27.50 baht in the morning session, down 0.9 per cent from its prior closing. The oil and retail stock has risen over 12 per cent in the past three months.