This article appeared in the July 2023 issue of Forbes Asia. Subscribe to Forbes Asia
This article is part of Forbes’ Thailand’s richest 2023 coverage.See full list here.
One of Thailand’s most highly anticipated IPOs in 2022 was that of Betagro, an agro-food conglomerate controlled by Chaivat Taepaisitphongse. The November listing was Thailand’s second-largest, raising $575 million, putting the patriarch among Thailand’s wealthiest in two years. He ranks 30th with a net worth of $1.2 billion.
Betagro is now aiming to become a leader in the global food industry. The company plans to use some of the proceeds from the IPO to expand production and build more farms and factories in Thailand and overseas (Laos, Cambodia and Myanmar). Betagro, which sells products domestically and exports to more than 20 countries, will also introduce new products such as instant foods. “Betagro’s strategy of expanding into value-added products and overseas markets will drive profit growth and enable it to maintain high levels of profit margins,” said an equity research analyst at Bangkok-based Bualuang Securities. says Prasit Sujiravorakul.
Betagro’s 2022 net profit is expected to reach 7.94 billion baht ($230 million), almost eight times higher than the previous year, with sales up 31% to reach 113.88 billion baht due to increased sales volume and product prices. became. However, the company’s shares were trading at a 30% discount to its IPO price in early June due to concerns over a slowing global economy, domestic political uncertainty and falling pig prices.
Chaivat’s family owns nearly three-quarters of Betagro’s shares. Betagro was founded in 1967 as an animal feed producer and has since expanded into livestock, pharmaceuticals, animal supplements and branded food products such as pork, poultry, eggs, sausages and vegetable proteins. Chaivat stepped down as chairman in 2021 after running the company for more than 40 years. His son Vasit is the CEO and President of Betagro. Four other members of his family also serve on the company’s board of directors.