MK, Senko team up on cold storage
Japanese firm seeks Asean logistics clients
To keep up with changing consumer lifestyles and the growing popularity of e-commerce, SET-listed MK Restaurant Group Plc (M) has formed a joint venture with Japan’s No.2 logistics provider, Senko Group Holdings Co, to provide logistics service.
Somchai Hanjitkasem, MK Group’s executive vice-president, said the new joint venture firm, M-Senko Co, in which MK and the partner hold an equal stake, is investing 1.5 billion baht to build facilities on a 33-rai plot of Bang Na-Trat KM21.
Of the total budget, 1 billion baht will be used to build the cold chain warehouse, 300 million for transport facilities and the remainder for the dry warehouse. Operations are expected to start in August 2019.
“We foresee an opportunity to expand cold chain logistics because of the growth of e-commerce,” Mr Somchai said. “Thailand’s food and drink sector is showing strong growth potential, and operators have yet to provide full-service cold chain logistics services here.”
In the first few years of operations, M-Senko will focus on providing warehousing, transport, forwarding and trading to business-to-business customers in the food sector for convenience stores, supermarkets and restaurants.
“The latest joint venture marks an important milestone for MK’s growth expansion [efforts],” Mr Somchai said. “It will leverage the strengths of both companies. While MK has strengths in the domestic food business, Senko has over 100 years of experience in transport and distribution services, specialising in sourcing ingredients from abroad. It has a large customer base in the global food and drink industry, which will give an edge to the new company.”
Weera Owaritkul, director of M-Senko, said this venture is the company’s first full-service cold chain logistics service offered outside of Japan.
“We will use Thailand as a springboard to expand into Laos and Cambodia,” Mr Weera said.
The company expects revenue of 800 million baht in 2019 and 1.8 billion in the year thereafter, when its full-service logistics service is running at full capacity.
Hiroshi Yamamoto, managing director of M-Senko Logistics Co, said Senko Group Holdings Co has over 500 supply chain centres in Japan and operates in the US, South Korea, China, Central Asia, Thailand and Myanmar, with revenue of 103 billion baht.
In addition to Thailand, Senko plans to expand its business in other Asean markets, including Cambodia, Laos, Myanmar and Vietnam, by developing new types of logistics services to meet demand from local consumers, he said.
Apart from logistics, Mr Somchai said the company will double its investment budget to 600 million baht to open 49 new restaurants this year, mainly MK and Yayoi restaurants.
“Consumer spending at MK restaurants in the first five months of this year was better than in the same period of last year,” Mr Somchai said.
MK Restaurant Group reported total revenue of 16.45 billion baht last year, up from 15.48 billion baht in 2016. MK’s net profit rose to 2.42 billion baht in 2017, up from 2.09 billion in 2016.
As of Dec 31, 2016, the company operated 426 MK Suki restaurants in Thailand and 171 Yayoi restaurants, along with another 38 eateries operated under different brands.
MK also opened MK Suki in Japan, Vietnam and Laos under franchise agreements. The company has further established Miyazaki restaurant via a joint venture in Laos.
M shares restaurant closed yesterday on the Stock Exchange of Thailand at 77.50 baht, down 25 satang, in trade worth 17.1 million baht.