BANGKOK: Two Stock Exchange of Thailand listed (SET) companies have established a jointly-owned subsidiary company that will look to make American fast food franchise A&W more profitable in Thailand in the coming decades.
The SET last week announced its approval of share allocation proposal for NPP Food Incorporation Ltd (เอ็นพีพี ฟู้ด คอร์ปอเรชั่น จำกัด) a joint venture between Nippon Pack Pcl (NPP:Bangkok) and Thailuxe Pcl (TLUXE:Bangkok).
In the announcement it was clarified that registered capital of the new company NFI is 100 million baht, divided into 10 million shares valued at 10 baht each. NPP assumes 55% ownership, with three directors, while TLUXE has 45% ownership with two directors.
In its initial Board of Director meetings held on August 27 and September 24, 2015, the new venture’s objectives was identified: “To support the management of business with A&W and invest more on food business that will occur in the future.”
According to this report, NPP aquired a 20-year franchise concession for A&W restaurants in Thailand on September 15, 2015, which will expire on Sept 14, 2035.
NPP’s primary business is plastic packaging, supplying the food industry with soft plastic packaging and PET bottles, produced at/distributed from a factory Bang Khunthian district of Bangkok.
TLUXE’s primary business is in prawn and fish feed production, retail and research, with factories in Phetchaburi and Songkhla, in addition to a R&D centre and farm in Samut Songkhram.
A&W, an American fast food chain brand specializing in burgers, fried chicken and frosty mugs of rootbeer, was started in 1919, the first restaurant opening in Sacramento.
The first Thai A&W franchise was opened at Central Ladprao shopping mall in Bangkok in 1983, and as of 2010, there were 40 franchises in Thailand, mostly in the capital.