Thailand’s Charoen Pokphand Foods Subsidiary, CP Foods India, is investing $500 million in the country within the next five years with the target of doubling turnover to US$1.1 billion.
The company’s 2014 revenue totaled $600 million, and is growing at between 10% and 15% annually, with the shrimp unit accounting for 50% of returns, poultry feed and farming accounting for 45%, and the recently launched food business, the remaining 5% – however the group expects its food business to grow three-fold in the next five years, according to CP Foods senior vice president, Sanjeev Pant.
The investment will be focused on expanding the company’s shrimp, chicken and food units including the introduction of packaged food products, and fish and shrimp-based foods through its 260 Five Star Chicken quick service chain locations across India within two to three years. Globally, Five Star Chicken has a presence in nine countries with over 7,000 locations in Thailand, Myanmar, Cambodia, Vietnam, Laos, Malaysia, China, Bangladesh, and India. The group is also in negotiations with online food delivery players in India that can support CP Foods India in taking its products online.
CP Foods owns and operates its own farms, storage, distribution and retail outlets, giving the group full control of its fully integrated supply chain. Founded in 1985, Five Star Chicken was created from a Thai multinational conglomerate, CPF India Pvt Ltd, which has over $13 billion in sales in the agriculture and food industries.
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