Japanese top rice cracker maker Kameda Seika to tie-up with Thai Singha to go global
BANGKOK, NNA - Japan’s Kameda Seika Co. will set up a joint venture in Thailand with local food and beverage company Singha Corp. to reorganize its rice cracker production in the Southeast Asian country as it aims to boost global growth.
The new 50-50 joint venture, Singha Kameda Thailand Co., will be set up in Samut Prakan Province, a southeastern suburb of Bangkok, in June, a spokesman of the Japanese snack maker told NNA Monday.
The production of rice crackers in Thailand will be gradually shifted from Kameda Seika’s aging existing factory to the new joint venture by utilizing Singha’s facility.
Thai Kameda Co., a wholly-owned subsidiary, has so far supplied the snacks to Japan, North America, Europe, and other countries but is expected to be liquidated in the October-December quarter this year, according to the spokesman.
Singha Kameda Thailand will also serve as an OEM (original equipment manufacturer) as Kameda Seika aims to broaden its global reach, he said.
The 100 percent Thai subsidiary posted 423 million baht ($13 million) in sales in 2019, according to the parent company’s earnings report released on Monday.
Currently, Kameda Seika has production in China, the United States, and Vietnam, among other nations.
In January 2019, it started production in Cambodia for exports to Australia and New Zealand. Likewise, its factory in India commenced operating last November and started to sell Kari Kari brand rice cracker snacks in the local market.
Kameda Seika aims to expand its overseas sales to 30 percent of total revenue by March 2024, up from 26.4 percent in March 2020.
For the fiscal year through March 2020, the snack maker, which boasts over 35 percent market share in the rice cracker segment at home, posted 103.8 billion yen ($962.5 million) in overall sales, around 80 percent of which came from the domestic rice cracker sales, the spokesman said.
For the longer term, the company plans to push up the ratio of non-domestic rice cracker sales, including sales overseas, to 50 percent of total revenue by March 2031, it said in the report.