Ichitan Group Public Company Limited (SET: ICHI) has executed a major New Business expansion beyond the beverage sector into agriculture—a cornerstone of Thailand’s economy. The company has established a joint venture with Ekyongwong Group, a leading Thai fertilizer operator, to form “Tan Fertilizer Co., Ltd.” with a registered capital of THB 150 million. ICHI holds a 51% equity stake, while Ekyongwong Group holds 49%.
This investment marks a strategic milestone in Ichitan Group’s strategy to build a New Growth Engine, shifting toward a sector backed by long-term demand and recurring purchases aligned with crop planting cycles. Thailand’s chemical fertilizer market is valued at over THB 80 billion annually, with the Compound NPK fertilizer market—the core premium segment targeted by the JV—valued at approximately THB 32 billion.
Rather than starting from scratch, “Tan Fertilizer” will adopt an Asset-Light model, leveraging Ekyongwong Group’s existing infrastructure, sales force, global partner networks, domestic trade connections, and deep expertise in sourcing and supply chain management. This approach significantly reduces market entry time and operational risks. In return, Ichitan Group brings key strengths in brand building, capital strength, financial discipline, and public company governance standards.
Mr. Tan Passakornnatee, President & CEO of Ichitan Group PCL, stated: “When Ichitan Group expands into a new business, we do not want to start from zero, nor do we enter simply because a market is large. It must be a market with genuine demand, backed by a highly capable partner where we can complement what they lack. Agriculture is a vital foundation of Thailand’s economy, and fertilizer directly impacts both crop yield and quality. This joint venture is not merely about selling fertilizer; it is about combining Ichitan Group’s core strengths with Ekyongwong Group’s 30-plus years of experience to build a new business that grows alongside Thai farmers.”
Operating since 1991, Ekyongwong Group generated an estimated revenue of THB 3.2 billion in 2025, ranking among the top industry players. Its key strengths include an extensive global partner network, strong domestic trade relationships, robust supply chain management, and dedicated field operation teams close to local farming communities.
Mr. Wuttiphong Vanakul, Founder and CEO of Ekyongwong Co., Ltd., added: “The fertilizer industry carries high barriers to entry, including distributor trust, technical product knowledge, inventory sourcing, and credit management—all of which require time and deep experience to establish. Partnering with Ichitan Group extends far beyond capital injection or marketing; it brings Mr. Tan’s nationwide reputation and credibility to unlock opportunities across the entire value chain.
Upstream, Ichitan Group’s and Mr. Tan’s national credibility will enhance negotiations with major global raw material suppliers, impacting product selection, quality, commercial terms, and competitive advantage. Downstream, Mr. Tan’s public presence will accelerate brand awareness and trust among major distributors, agricultural retailers, and individual farmers.
Combining Ekyongwong’s market strength, supply chain, and field execution with Ichitan’s brand equity and corporate credibility will drastically shorten market development time, allowing Tan Fertilizer to grow significantly faster than starting from scratch.”
Not Starting from Zero: Rampatec Leads the Charge
As an immediate first step, “Tan Fertilizer” will take over Rampatec, a premium fertilizer brand developed by Ekyongwong Group over the past three years, which generated approximately THB 70 million in recent annual sales. This enables the JV to generate immediate revenue and expand market share without the lead time required to build a brand from scratch.
The initial target group focuses on high-value economic crop farmers—such as those growing durian, mangosteen, longan, and export-grade fruits—who prioritize yield quality and are willing to invest in high-efficiency inputs, before expanding into the Premium Mass market.
From Fertilizer Business to Agri-Innovation Platform
Long-term, “Tan Fertilizer” aims beyond fertilizer distribution, laying out a roadmap to expand into sustainable agricultural efficiency products, such as amino-coated fertilizers, micronutrients, soil enhancers, and slow-release fertilizers. The ultimate goal is to evolve into an Agri-Innovation Platform that selects, tests, and adapts global agricultural innovations for practical use by Thai farmers, powered by distributor networks and farmer insights.
Under the investment structure, ICHI will commit up to THB 76.5 million in equity capital, disbursed in tranches according to contractual milestones. The initial phase will focus on company setup and operational readiness before launching full commercial operations starting May 2027. The financial performance of Tan Fertilizer Co., Ltd. will be consolidated into Ichitan Group’s financial statements in accordance with accounting standards.
