Published on January 11, 2008
Pratana Manomaiphiboon, director and chief financial officer, said yesterday that the investment budget for each project was about Bt1 billion. The company's internal cash flow of about Bt4 billion is enough to cover the new investment projects this year.
Last year, Minor International acquired 50 per cent of the common shares of Coffee Club Holdings, which franchises the food and beverage brand "The Coffee Club". It has more than 180 outlets in Australia. Minor has to pay about 23 million Australian dollars (roughly Bt660 million) for the shares. The company is also looking at the Maldives, Middle East, Vietnam, South Africa, Singapore and Australia for investment opportunities.
Last year, the company forecast sales to grow 20 per cent. The net profit margin of the food and hotel business was 10 per cent. Half of its revenue came from the hospitality business, while 40 per cent came from food enterprises. The expansion is part of Minor Group's plan to invest at least Bt10 billion over five years to support double-digit growth, said William Heinecke, Minor Group chairman and CEO.
The group yesterday signed an outsourcing agreement with IBM. During the 10-year, Bt1.3-billion contract, IBM will take care of all IT operations, related support and maintenance tasks under a budget of Bt1.3 billion. This will let Minor executives take care of business, Heinecke said.
"The collaboration with IBM will benefit Minor in many ways. The IT solution from our partner will enhance the group's IT system and infrastructure much quicker and in a more cost-effective way than working on our own.