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Published on September 20, 2007

CEO Vanus Taepaisitphongse said yesterday that the move would enable the group to benefit from tax incentive by listing on the SET within this timescale. The Finance Ministry has a policy, which expire at the end of the year, to reduce corporate tax from 30 per cent to 25 per cent for firms which apply to be listed on the bourse.

"We will apply to be a listed company this year to get the tax incentive, but we plan to raise funds from the SET next year, depending on market sentiment," he said.

However, Vanus declined to disclose how much the company needs to raise from the market.

Betagro has appointed Phatra Securities as its financial adviser for the listing plan.

The group yesterday announced that it would change its logo in a bid to attract a younger generation of customers. It will be changed from a triangle shape and the letter 'B', into a flower shape around a triangle with the name Betagro underneath.

The green colour of the new logo was selected to present the group's philosophy of concern about the environment and the production of quality food products for consumers.

Moreover, the company plans to invest Bt3.1 billion to expand capacity at its food-processing plant in Lop Buri province in 2008 and 2009. Part of the funding for the expansion will come from the stock market, with the rest borrowed from banks.

Betagro Group has 29 firms in five core business areas. The core businesses are swine integration, poultry integration, regional and feed, animal health, and miscellaneous businesses such as food processing and Japanese restaurants.

The group announced sales of Bt30 billion last year and expects Bt33 billion this year, adjusted from the earlier estimate of Bt35 billion due to the economic slowdown.

The group also expects sales growth averaging 10-15 per cent a year, Vanus said.

Up to 75 per cent of the group's sales come from the domestic market. The major businesses that create the highest revenue for the group are swine integration, which accounts for 40 per cent, and regional and feed, also 40 per cent.

When Betagro applies to be listed on the SET, Betagro Agro-Group - the parent company - will hold major stakes in the group's 29 firms. Betagro Agro-Group currently has paid-up capital of Bt680 million and a debt-to-equity ratio of 6:1.

Executive vice president and chief financial officer Siriwan Intarakumthorn-Chai said that when the group is listed, the debt-to-equity ratio would be reduced to 2:1.

"Our debt-to-equity ratio is high compared with other listed companies on the SET because we have expanded our investments between Bt1 billion to Bt2 billion a year since 2002 to expand our production capacity. However, we believe that when we restructure our business and succeed in raising funds from the capital market, the group's debt-to-equity ratio will be reduced to the standard 2:1," Siriwan said.

Vanus added that in the next decade, after celebrating its 40th anniversary this year, the group would focus on the production of high-quality and safe food. The company will also expand its relationships with strategic partners, including farmers, trade partners and consumers.

"We want to establish efficient management of business operations to ensure sustainable development and competitiveness for the whole group," he said. "We'll develop and produce safe, high-quality food products from our modern agriculture-based infrastructure for the benefit of the world's population."

Somluck Srimalee

 The Nation