The group has also budgeted Bt10.4 billion for the renovation of its department stores in Europe, which will be conducted from now through 2020.

The group targets total revenue of Bt337.04 billion this year, 18.9 per cent more than last year’s Bt283.45 billion.

Tos Chirathivat, chief executive of Central Group, said the company had no plan to sell its 25-per-cent stake in Big C Supercenter, a majority of which was recently acquired by beverage tycoon Charoen Sirivadhanabhakdi.

Through his company Berli Jucker, Charoen last month acquired a 58.6-per-cent stake in Big C from France’s Casino Group for US$3.5 billion (Bt124 billion).

Tos said Central Group created the Big C hypermarket business back in 1994. In 1997, the year of the Asian financial crisis, the group decided to invite Casino Group to acquire a stake and raise the investment capital at Big C. At that time, Central’s stake in Big C was diluted to only 25 per cent. “We have not yet discussed with the new majority shareholder of Big C what we will do for the hypermarket chain in the future,” Tos said.

He said Central Group was also considering whether to bid for acquisition of Big C’s operation in Vietnam. That deal, worth about Bt20 billion, will open for bidding next Thursday. Many players are expressing interest in joining the bidding process, including from Japan, South Korea and Vietnam itself.

Vietnam

“In Vietnam, Central Group has operated retail businesses in the country with about Bt20 billion in annual sales. If the group is able to acquire Big C’s business in Vietnam, the revenue generated by the group [in that country] will double, as Big C’s annual sales in Vietnam are also as high as Bt20 billion.”

In Thailand, Tos said, Central Group will invest in department stores, condominium projects, hotels, and new special stores.

He said it would open two new CentralPlaza shopping complexes in Nakhon Si Thammarat and Nakhon Ratchasima. Late next year, the group will open Central Phuket Phase 2.

Some of the investment budget will be also allocated to the renovation of its existing shopping centres in Pattaya, on Rama III Road in Bangkok, and CentralWorld, as well as Central Department Store outlets. These will include Central Chidlom, Zen, and department stores in Phuket, Bang Na and Pinklao, and Robinson Department Store outlets on Rama IX Road in Bangkok, as well as inChiang Mai, Ratchaburi, Trang, Saraburi and Nakhon Si Thammarat.

The group will this year also |open a Robinson Lifestyle Center |in Lop Buri and a new Robinson Department Store at its CentralPlaza shopping complex |in Nakhon Si Thammarat.

It will also develop three new condominium projects under the Escent brand in Chiang Mai, Rayong and Khon Kaen.

For its hotel business, the group plans to open Khum Kham Convention Centre in Chiang Mai, Centra Maris Resort Jomtien and Centara Avenue Hotel in Pattaya, Centra Phu Pano Resort, and six new hotels under the Cosi brand in six locations including Samui, Chiang Mai and Pattaya.

About 420 stores will be opened this year by the group’s retail units, including Central Restaurant Group, Central Food Hall, Tops Market, Tops Superstores, Tops Daily, Family Mart, Komonoya, Supersports, Power Buy, and Thai Watsadu.

Overseas, the group will invest in the expansion of its retail and hotel networks in eight markets in the West – Italy, Germany, Denmark, Turkey, Qatar, Oman, Ethiopia and Cuba – and nine in the East, namely Thailand, Vietnam, Laos, Malaysia, Singapore, Indonesia, China, Sri Lanka and Maldives.

Tos said Centara was a Thai-based hotel chain that had been successful in expanding its footprint in many markets abroad. It now operates 41 hotels with 7,800 rooms. A total of 35 of the hotels are in Thailand and six overseas, including in Vietnam, Indonesia, Sri Lanka and Maldives.

“We are in the process of signing contracts to manage 29 new hotels with 6,700 rooms altogether. About 18 are in overseas markets, which are China, Oman, Qatar, Turkey and Cuba,” said Tos, adding that the group will also develop two new hotels in Dubai and Maldives.

He said Central Group targeted revenue from its international retail business of Bt51 billion this year, representing about 40 per cent of the total revenue of Central Department Store Group.

The group posted Bt30 billion in revenue from its international retail business last year, a figure that is expected to reach Bt100 billion by 2020.