Thai online marketing firm COL to expand via M&A’s
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COL is the operator of OfficeMate, B2S, Central Online Shopping, Mobile E-Books, and Cenergy Innovation.
“The competition has become so fierce that many companies are finding it difficult to run their business. Hence, there are opportunities to acquire them, which will help us enlarge our customer base domestically and internationally,” Worawut Unjai, chief executive of the COL Group, said.
The company is also shifting its focus on online business, which is expected to generate revenues of 800 million baht this year.
Only last week, it informed the Stock Exchange of Thailand that it completed its entire investment disposal in Central Group Online Co, representing 49 per cent of total shares, to its subsidiary Cenergy Innovation Co, which is into retail online marketing and IT solution, for 147 million baht.
It cited in the statement that the joint venture with Central Department Store, a leader in Thai retail, is key to gaining competitive advantage in the online retail market. It will be able to leverage Central’s expertise in inventory management, brand, and connections with suppliers and customers.
“We will launch a new online shopping website in the third quarter. We will gather the goods from Central Group and its major partners and target to have 180,000 items in the website this year,” he cited.
The COL Group posted 10.8 billion baht in total revenue in 2015, up 9.2 per cent from the previous year.
Of that, 60 per cent was from OfficeMate and 37 per cent from B2S. Central Online made up for the remaining 3 per cent, which is being boosted to around 10 per cent of total revenue in 2016.
He said, the group’s net profit was 394 million baht, thanks to its adjusted strategies and management policy for better efficiency.
The group increased the number of products and services to address customers’ needs and catered to various businesses.
COL Group expects to grow its revenue this year by 10 per cent to 11.9 billion baht despite lower consumer spending.
OfficeMate is the first company in the group that has expanded into other countries and it would add branches in Vietnam, which will officially open this year.
Questions & Answers
Q.What is the primary reason for COL's strategy to acquire other companies?
What is the primary reason for COL's strategy to acquire other companies?
COL plans to acquire companies because fierce competition makes it difficult for many businesses to operate. This presents an opportunity for COL to enlarge its customer base both within Thailand and internationally through these acquisitions.
Q.Which of COL's existing businesses contribute the most to its total revenue?
Which of COL's existing businesses contribute the most to its total revenue?
In 2015, OfficeMate accounted for 60 per cent of COL's total revenue, while B2S contributed 37 per cent. Central Online made up the remaining 3 per cent of the group's revenue that year.
Q.How will the joint venture with Central Department Store benefit COL's online retail business?
How will the joint venture with Central Department Store benefit COL's online retail business?
The joint venture will allow COL to gain a competitive advantage by using Central's expertise in inventory management and brand recognition. COL can also benefit from Central's connections with suppliers and customers in the Thai retail market.
Q.What is COL's financial outlook for its online business and overall revenue this year?
What is COL's financial outlook for its online business and overall revenue this year?
The online business is expected to generate 800 million baht in revenue this year. COL Group anticipates a 10 per cent increase in total revenue to 11.9 billion baht for the current year.
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