CP All keen on Chinese, Indian wholesale prospects

Thai billionaire Dhanin Chearavanont’s retail subsidiary CP All Plc is considering an expansion of wholesale operations in China and India to tap the might of consumers in the world’s most populous nations.

Kriengchai Boonpoapichart, chief financial officer of CP All, said the firm’s cash-and-carry unit Siam Makro Plc is studying opportunities in the two countries, as well as the possibility of setting up a store in Myanmar, having already opened an outlet in Cambodia.

“Siam Makro is on a new journey of expanding in overseas markets,” said Mr Kriengchai. “It will be a tough and challenging road, but it’s a good opportunity, with large populations to tap compared with Thailand’s mature market.”

Thailand’s billionaire business tycoons have stepped up acquisitions and investments abroad as an ageing population and increased competition dim the longterm domestic growth outlook. Earlier this year, Siam Makro said it had set up LOTS Wholesale Solutions in India and planned to invest more than 10 billion rupees (4.82 billion baht) over five years.

Siam Makro intends to open its first store in India soon and a second outlet in Cambodia, said Mr Kriengchai. CP All acquired Siam Makro for about $6.1 billion in the country’s biggest takeover.

“It’s a risky and large investment for Siam Makro to expand into new foreign territory,” said Sasikorn Charoensuwan, head of research at Phillip Securities (Thailand) Plc. “It will take some time to break even as economies of scale come when many more stores are opened.”

Shares of CP All and Siam Makro have dropped less than 4% this year, while the benchmark SET index has slid about 8%.

Mr Dhanin, whose investments include telecommunications, agriculture and insurance businesses in Thailand, China and other countries, has a net worth of $4.2 billion, according to Bloomberg Billionaires Index.

CP All operates more than 10,000 7-Eleven stores in Thailand.