Singapore’s Jumbo Group Launches Joint Venture to Propel Ng Ah Sio Bak Kut Teh Brand in China

The popular Singapore-based Jumbo Group has recently announced its intention to broaden the reach of its Ng Ah Sio Bak Kut Teh brand in China, commencing with a focus on Shanghai.

Joint Venture for International Expansion

Jumbo Group’s wholly-owned subsidiary, Jumbo F&B Services, has partnered with K Grand Resources and investor Yap Kok Kiong to establish this venture. K Grand Resources is the major stakeholder, owning 60% of the project. Jumbo F&B Services and Yap Kok Kiong each have a 20% stake.

The newly formed Singapore-based company will possess the area franchise rights for the Ng Ah Sio Bak Kut Teh brand in Shanghai and other designated locations throughout China. Its responsibilities encompass sourcing franchisees and facilitating the brand’s growth within the Chinese market.

As part of the agreement, the joint venture will have permission to utilize the Ng Ah Sio Bak Kut Teh trademark and associated intellectual property, granted by Jumbo Group.

Strategic Growth and Funding

Jumbo has clarified that the investment necessary for this initiative will be sourced internally and is unlikely to significantly impact the group’s earnings or net tangible assets for the financial year ending September 30.

This strategic move aligns with Jumbo’s larger expansion plans. The group is determined to fortify its presence in China and Southeast Asia, with a specific focus on Shanghai, Jakarta, and Ho Chi Minh City. The group also hopes to diversify into institutional catering, thereby broadening its business portfolio.