Carabao Tawandang, the manufacturer of Carabao Dang energy drinks, plans to open factories in Myanmar and Cambodia within the next three to five years.
Managing director Sathien Setthasit yesterday said the company would also increase the production capacity of its Thai factory by 40 per cent, in line with the goal of making Carabao Dang the No-1 energy-drink brand in Asean.
He said the establishment of plants in Myanmar and Cambodia formed a central part of its plan to penetrate other Southeast Asian markets. The planned factory in Myanmar in the next three to five years would also give Carabao Tawandang a production base for exporting its energy drinks into middle-Asian countries such as Bangladesh and India.
Output from the company’s planned factory in Cambodia would cover that market, as well being exported to Vietnam.
Thailand, however, will remain its main production centre for Asean, he stressed.
“We have budgeted up to about Bt1 billion for the investment, of which between Bt200 million and Bt300 million is for the energy-drink factory in Myanmar, and a similar amount for our plant in Cambodia.
“For Thailand, we will invest Bt300 million next year to add new machinery at our factory, which will increase overall production capacity by 40 per cent from 3 million bottles a day currently,” said Sathien.
The Myanmar market for energy drinks has good potential, said the MD.
The company believes that, given its regional ambitions, sales of its Carabao Dang drinks will have the chance to grow tenfold in the future – from 5 million-6 million bottles a month to between 50 million and 60 million bottles.
“Economic growth in Myanmar will allow individuals to enjoy higher spending power. Having our own factory in Myanmar will allow our energy-drink products to be cheaper than those we now sell there, which are imported from Thailand,” he said.
“The current average income in Myanmar is still low, at only US$2 [about Bt60] per day, when compared to the high price of our energy drink, which is Bt20 per 250ml bottle,” he added.
Sathien said the company wanted to become the top-selling energy-drink brand in Asean with annual sales of Bt15 billion by 2018, against about Bt7 billion targeted for this year.
Source: ELEVEN Myanmar