On August 8, 2022, PTT Oil and Retail Business Public Company Limited (SET: OR)’s board of directors approved its subsidiary, Modulus Venture Company Limited, to invest in purchasing the issued ordinary shares and the newly issued shares of Dusit Foods Company Limited, the subsidiary of Dusit Thani Public Company Limited (SET: DUSIT), with investment limit not exceeding THB 299 million. Following this transaction, Modulus holds 25% of Dusit Foods’ ordinary shares while DUSIT holds the remaining 75%.
A source familiar with the deal revealed to Kaohoon that the purpose of holding Dusit Foods stocks is to make investments across the food business supply chain. The investment focus would be on the food business with high growth and connect to the food business of OR group, both hotel and educational institution sector. This would increase the potential of OR’s lifestyle sector and create growth opportunities both domestic and international.
However, ever since OR group bought 25% of the Dusit Foods’ stocks, the company faces continuous losses. Before the purchase, Dusit Foods still had net profit, with figures of THB 352 million in 2020 and 208 million in 2021. But afterwards, the bottom-line turned to loss, with value reaching THB 80.36 million in 2022, THB 43.72 million in 2023, and THB 19.15 million in 2024. The total loss now has reached THB 143 million.
The decision to purchasing Dusit Foods’ stocks came during the administration of Ms. Jiraphon Kawswat as a chief executive officer and managing director of OR, Mr. Somyot Kongprawet as a the lifestyle sector’s deputy managing director, and Mr. Atthaphon Rerkpiboon as the board’s chairman.
Dusit Foods has four main investments. The first is in the Epicure Catering Company Limited, a food and beverage company that provides service to 70% of total international schools in Thailand. The second is the Caterers Joint Stock Company Limited (The Caterers), the leading catering company for school and off-site parties in Vietnam.
The third is the KAUAI, a South Africa’s popular health food brand that is expanding its business in Thailand and other countries in Asia. And the last is Bonjour Bakery Asia Company Limited, the owner of bonjour bakery franchise and the major manufacturing plant for bakery in the Eastern Seaboard Industrial Estate in Rayong province. Currently, Bonjour Bakery Asia has 50 bonjour bakery franchise branches in Thailand and 1 in China.
