Hylife Group, a Chiang Mai-based Indian-owned conglomerate, plans to float shares on either the Thai bourse or another Asian stock market by 2030 as it aggressively expands in Thailand, says chief executive Shubhodeep Das.
In an interview with the Bangkok Post, Mr Das said Hylife is considering a plan to list on either the Hong Kong, Singapore or Thai bourse by 2030 to mobilise funds for business expansion, starting with its property business.
Established in the northern province of Chiang Mai six years ago, Hylife Group comprises three businesses: property development, including condos, pool villas and shophouses; asset management; and manufacturing.
Hylife Global Food, the group's latest company, is set to open its first factory in October for the production of processed fruit, vegetables and related food products, serving the domestic and exports markets. The initial investment totals 400 million baht.
Hylife held an original equipment manufacturing contract for raw materials, including mangoes, sourced from local growers over the past several years. The company purchases 2,000 tonnes of mangoes per month and up to 200 tonnes of processed mango may be shipped to the US monthly under the Costco brand.
Mr Das says the vision of the property developer is to become a leader in Thailand, then gradually expand to other markets in Asia.
FINANCE NEEDED
"We seek opportunities in multiple segments, but we have been quite sustainable with self-financing to date. For the next step, we will move on to bank financing to tap into the next stage of growth," he said.
"We also have an ambitious goal of an initial public offering by 2030 to raise funds to fuel the company's growth."
Mr Das said management is concentrating on three stock exchanges for a possible listing: Thailand, Singapore and Hong Kong.
"But of course, we need to evaluate this later in terms of capital availability because the main purpose of listing is to get capital to grow the business. Whichever country has more capital and will generate enough interest for our types of businesses, that will be the one we will opt to list on," he said.
Among the group's three businesses, Mr Das said property development will be the first to list because it is a "very investment-heavy business".
Established in 2018, Hylife Developments operates a residential real estate development business, with a strategic focus on condos, commercial buildings and villas.
The company launched Hycondo Botanic and Hyparc 2 projects last year with a combined investment of 1.4 billion baht, together with an investment of 105 million baht in land.
This year the developer commenced construction of Hycondo Botanic, while studying the feasibility of developing the Hycondo 4 project, both located in Chiang Mai.
He said the vision of Hylife Developments is to become a leading real estate developer in Thailand, gradually expanding into other Asian markets.
SECOND-TIER CITIES
According to Mr Das, Hylife Group has invested more than 4 billion baht in Thailand, with more in the pipeline.
With registered capital exceeding 630 million baht, the group employs more than 350 individuals in the country.
Part of the group's vision is to develop Chiang Mai into a leading second-tier city, partly by investing in innovation and manufacturing in Thailand, importing technologies and talent from around the world that can benefit the country, he said.
"Chiang Mai is a second-tier city, but its growth lags its peers in the region," said Mr Das.
"The city has a lot of potential based on its location and business-friendly environment."
Chiang Mai has a young population, but experienced brain drain because of a lack of opportunities, he said.
There is also an increasing need for housing based on large and growing local and expat communities, said Mr Das.
"We want to take a leadership role in Chiang Mai, investing in businesses that do not exist here, making a meaningful impact and developing the economy," he said.
While the property and manufacturing operations of the group are located in Chiang Mai, Hylife's asset management business has expanded to other areas including Bangkok, Chon Buri, Ayutthaya, Chiang Rai, Surat Thani and Maha Sarakham.
Hylife Asset is a private, non-bank financial institution specialising in asset-backed finance and asset management services, serving companies and individuals looking for loan options.
Pinnacle Asset Management ac-quires and rehabilitates non-performing loans from both financial and non-financial institutions in the country.
"We aim to become the largest non-performing asset manager in the northern region by 2026 and one of the top five in Thailand by 2028," said Richard Teo, Hylife Group's director of operations and transformation.
TAXING FOREIGN PURCHASERS
In Mr Das's view, Thailand is stuck in the middle income trap, noting it is hard to get out of "without significant investment in skills development".
Thailand should look to Singapore, which allows 100% condo ownership, but with a tax on foreign buyers, he said. The city-state revises this tax every year based on market conditions, and it has reached as high as 60% when the real estate market heats up.
"The Singapore model generates a lot of tax revenue, which should be invested completely in skills development to raise the level of affordability for locals," he said.
Thailand, which has a significant amount of undeveloped land, could follow this model, which has been very successful in Singapore despite the lack of available land there, said Mr Das.
"This is also a solution for the high level of household debt in Thailand because the value of property would increase, making it easier for local people to clear their debts," he said.
Meanwhile, growth in property value is a major driver of the Thai economy, similar to the environment in other countries such as China and Singapore.
"A land lease of 99 years is pretty standard across the world, so there's no reason why Thailand shouldn't implement it. A tax on foreigners allows locals to have an advantage," said Mr Das.