Sri Lanka Keells in deal with Thai food producer
Dec 05, 2011 (LBO) - A unit of Sri Lanka's John Keells Holdings has signed a deal with Thai food producer S Khonkaen to distribute its products and build a factory in the island for export to India, a report said.
The move is part of plans by S Khonkaen Foods, a big producer of Thai-style sausage and dried shredded pork, for expansion both globally and domestically with an investment budget of 80-130 million baht.
S Khonkaen Foods has signed a distribution and joint venture agreement with Keells Food Products, which owns Sri Lanka's Keells supermarket chain, the Bangkok Post newspaper quoted its chief executive Charoen Rujirasopon as saying.
The Keells supermarket chain is a likely distribution channel for S Khonkaen products, it said.
"Both sides also entered a collaboration to build a factory in Sri Lanka to produce Indian-style foods. A study will determine the size of the potential market for both companies to export to India."
S Khonkaen will expand production in Poland, where it is hiring a factory to produce Chinese pork sausage and port products to supply Eastern European markets, the newspaper said.
The company has opened three branches of 'Sab Express' outlets in department-store food courts in Thailand and plans to have 10 branches next year.
The model will be used as a prototype for Thai fast-food expansion in Europe, with its first location planned for Warsaw, Poland, the newspaper said.