Singha Corporation has earmarked 5 billion baht to expand its beer and water production capacity in a bid to increase sales to 200 billion baht this year.
Executive director Bhurit Bhirombhakdi said 4 billion baht would be used to install new machinery on the second beer line of its brewery in Nakhon Pathom's Bang Len district.
Singha Corporation is a subsidiary of Boon Rawd Brewery, which oversees the management of more than 50 companies under its umbrella and whose core product is Singha beer.
The other 1 billion baht is earmarked to boost blowing capacity of PET bottles at nine Singha drinking water factories nationwide.
Mr Bhurit, a member of Singha Corporation's founding family, said the increased beer production would support expansion plans in Indochina this year.
Besides its own investment, Boon Rawd is also considering expanding its non-alcohol business through mergers and acquisitions (M&As).
Mr Bhurit said talks were being held with two companies about possible M&As but declined to reveal the types of business.
"Singha is no longer just a beer company but a diversified corporation engaged in a variety of businesses ranging from beer, non-alcoholic beverages and foods to energy and property," Mr Bhurit said.
He said the country's sluggish economy and weak consumer purchasing power had prompted the company to revise its business strategy to fit the situation better.
Mr Bhurit said Singha Corporation had decided to delay a listing of its Bangkok Glass Co on the Stock Exchange of Thailand, originally planned for this year.
Sales of Singha beer grew by 3% year-on-year in the first quarter, ahead of the overall beer industry, which showed flat growth.
Singha commanded a 72% share of Thailand's 170-billion-baht beer market last year.
Market value is expected to rise to 180 billion baht this year or 2.1 billion litres.
Mr Bhurit said first-quarter sales of Singha drinking water increased by only 8% year-on-year, far below expectations of 25% growth. However, sales of Singha soda water grew by 9% year-on-year, beating expectations of 5%.
Sales at Boon Rawd Trading Co, the distribution arm, is forecast at 200 billion baht this year, up from 120 billion last year.
Of that, 130 billion baht is expected from beer, 30 billion from property, 16 billion from foods and non-alcoholic beverages, 13 billion from Bangkok Glass and 41 billion from others.
