An aerial view of Ticon Logistics Park on Bang Na-Trat Road KM 39. ThaiBev is in talks to buy Ticon but some issues are still outstanding.
Thai Beverage Group, controlled by tycoon Charoen Sirivadhanabhakdi, is negotiating to buy Ticon Industrial Connection Plc, a SET-listed developer of ready-made factories and warehouses for rent, says a senior company executive who requested anonymity.
The source said ThaiBev subsidiary Thai Beverage Logistics Co is in talks with Ticon on the purchase deal but some issues are still outstanding.
"If we can successfully acquire Ticon, it will help us achieve our long-term goal to become the country's largest logistics provider," the source said.
An industry source said ThaiBev wants to buy Ticon because the latter has superior logistics know-how and a complete network. Thai Beverage Logistics is a mid-sized logistics company, said the source.
ThaiBev has expanded its logistics network across Asean, particularly in Cambodia, Laos, Myanmar and Vietnam, the region that is its focus.
ThaiBev has its own logistics operations in Vietnam via two subsidiaries: Thai An and Thai Corp. The group relies on Fraser and Neave for logistics in several countries including Malaysia, Indonesia and Myanmar.
It plans to have its own logistics operation in Myanmar in the future.
The group appointed Kosit Suksingha as the chief of supply chain, handling raw material purchasing management, packaging and product distribution.
ThaiBev is building a new distribution centre in Lampang province to increase product distribution efficiency in the North.
The group's logistics business started almost a decade ago to strengthen its business expansion and competitiveness. ThaiBev hopes the logistics business will play a bigger role in the group now that Asean is a single market.
Thapana Sirivadhanabhakdi, group chief executive of ThaiBev, said logistics is a key factor to reduce operation costs and support product distribution for business units under the group. If it can manage logistics efficiently, ThaiBev will gain an advantage in many countries to which it exports, said Mr Thapana.
An analyst at Asia Plus Securities said the acquisition would immediately enhance ThaiBev's distribution system.
"It depends with whom ThaiBev synergises the assets it acquires. I imagine initially ThaiBev would use Ticon's facilities to diversify as a third-party logistics provider," said the analyst.
The source said several foreign companies are now coming into Thailand to provide third-party logistics.
A third-party logistics provider is a company that has no warehouse, renting space from others and providing other facilities to help deliver goods to customers.
"ThaiBev would use Ticon's assets and warehouses to expand its logistics network to profit on providing third-party logistics. ThaiBev could also strengthen its distribution system," said another analyst who asked not to be named.
"Competition in the logistics sectors is very fierce and is likely to intensify, and this move will force players to adjust," said Jareeporn Jarukornsakul, executive and vice-chairman of WHA Corporation Plc, Thailand's largest developer of built-to-suit logistics facilities.
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