PTT Oil and Retail Business Plc (OR), the country's largest oil trader by sales volume, has expanded its food business by acquiring a 25% stake in Imsub Global Cuisine Co (ISGC), the owner and operator of restaurant brands including Kouen Sushi Bar, for 192 million baht.
The acquisition is aimed at strengthening OR's non-oil businesses, notably food and beverage, as it diversifies from stiff competition in the oil industry, according to the company's report to the Stock Exchange of Thailand on Thursday.
Jiraphon Kawswat, chief executive and acting president of OR, said the move is part of the company's plan to have a variety of products and services and create new business opportunities for its domestic and international growth.
OR made the investment through its wholly-owned Modulus Venture Co, which oversees and scouts for new non-oil businesses, including mobility-related businesses.
ISGC is the latest business partner of OR under its plan to synergise its expertise with new businesses through share purchases and franchise agreements.
Besides Kouen Sushi Bar, ISGC owns and operates Yoong Khao Hom restaurant, which serves southern Thai food, and Da Cuisine, a Chinese cuisine restaurant. They are located in central Bangkok.
Earlier in February OR bought a 20% stake, worth more than 400 million baht, in Pluk Phak Praw Rak Mae Co, which runs the Ohkajhu organic restaurants.
The investment will allow Ohkajhu to expand to PTT stations, which not only act as filling stations but also as hubs for restaurants, coffee houses and convenience stores.
OR currently operates 2,367 PTT stations and 3,727 coffee houses under the Cafe Amazon brand.
The company plans to grow to 2,500 petrol stations and 5,300 Cafe Amazon branches in Thailand and 11 other countries by the end of this year.
OR will also add 100 electric vehicle (EV) charging outlets nationwide this year, up from 33 at present. The numbers will increase to 300 by 2022 in a move to build more EV infrastructure in the country.
Ms Jiraphon said she expects earnings before interest, taxes, depreciation, and amortisation (Ebitda) of non-oil and overseas businesses to increase to a rate of 45% by 2025, up from 28% in the middle of this year.
Non-oil and overseas businesses require 65% of the company's 74.6-billion-baht capital expenditure allocated between 2021 and 2025.
