BANGKOK, Thailand – Oil retailer PTG Energy Plc has acquired a 99.99 per cent stake in GFA Corporation Ltd, the operator of Coffee World, for 205 million baht ($6.13 million), according to the company’s filing to the Stock Exchange of Thailand.
The acquisition, which was made through PTG’s subsidiary PunThai Coffee Ltd, is part of the firm’s strategy to bolster its non-oil business. GFA currently has 130 café and restaurant chains domestically and internationally.
Along with Coffee World, it also operates Cream & Fudge, the restaurant chain New York 5th Avenue and Thai Chef Express.
“The existing branches [under GFA’s operation] are in good locations, which will become effective distribution channels for our products,” said PTG president and chief executive Pitak Ratchakitprakarn.
Over the past two to three years, oil companies in the country have focused more on their non-oil business that generates more margins and helps offset fluctuations in oil prices.
PTT Group, the country’s leading energy conglomerate, is also shifting its focus to its non-oil businesses including Café Amazon coffee houses, solar power farms and energy storage systems.
PTT aims to have 2,000 branches of Café Amazon by the end of this year, from 1,667 branches last year.
Apart from Thailand, Café Amazon is also available in Laos, Cambodia, the Philippines, Myanmar and Japan. PTT targets to have 2,700 outlets of Café Amazon in Thailand and 400 outlets in overseas by 2021, Auttapol Rerkpiboon, senior executive vice president of PTT’s oil business, told the media.
“We have targeted potential markets and have been talking with potential partners to expand the coffee house business globally. We will launch the coffee house in Oman this year and, hopefully, tap into Malaysia, Singapore and Shanghai soon,” he said.
The company plans to triple its annual production capacity to 2,700 tonnes at its coffee roasting plant next year in line with its aggressive expansion plan. The sales of Café Amazon are expected to surge from $229 million in 2016 to $285 million in 2017, he added.
Chalida Ekvitthayavechnukul
