Tiger Distribution & Logistics Co, a subsidiary of Saha Group, has set up a joint venture with local partners in Myanmar to expand its logistics and warehouse business.
Tiger Distribution & Logistics (Myanmar) has registered capital of 10 million baht. ICC International Plc, a marketing arm of Saha Group, and Vichien Kantathavorn, founder and managing director of Tiger Distribution & Logistics, together hold a 60% stake, while the remaining 40% belongs to MK Trading Company in Myanmar.
“We have expanded our business to Myanmar because it’s a very promising market with a population of almost 60 million and quite low labour costs,” Mr Vichien said.
About 30 Thai companies are doing business in Myanmar but none provides logistics services.
Mr Vichien said Tiger Myanmar planned to set up its distribution centre in Yangon soon.
At home, Tiger Logistics aims growth of 5-15% per year. It will boost sales by exporting cassava root from Thai farmers to supply Chinese companies who use it to produce ethanol and citric acids.
Tiger Logistics recently delivered the first lot of 30,000 tonnes of cassava root and generated 200 million baht in sales.
“We already have cassava root orders of 200,000 tonnes in hand this year,” Mr Vichien said.
Sales of Tiger Logistics are expected to reach 1 billion baht this year, jumping from 570 million baht in 2014.
Due to declining oil prices, the company slashed its service prices by more than 20% last month. “We want Tiger Logistics to be as popular as DHL but it should be recognised by customers that it’s a low-cost Thai logistics provider,” Mr Vichien said.
Tiger Logistics is a joint venture between Mr Vichien and three Saha Group companies — Saha Pathana Inter-Holding Plc, Saha Pathanapibul Plc, the distributor of consumer products, and ICC International, a marketing arm for fashion and cosmetics.
Source: Bangkok Post