At the same time, TRIS assigned the rating of “A+” to MPSC’s proposed issue of up to Bt10.1 billion in senior unsecured debentures.

The proceeds from the new debentures will be used for repaying its existing debt, and for planned capital expenditure.

The ratings reflect MPSC’s market position as one of the world’s leading sugar producers, well-accepted brand name, efficient sugar-mill operations, geographic diversification, and diversified sources of income, the ratings firm said.

The ratings are partially offset by the cyclical and the volatile nature of the prices of sugar and sugar cane, as well as the ongoing restructuring of the sugar industry in Thailand, it added.

The banks joining the listed energy giant in the collaboration are Bangkok Bank, Krung Thai Bank, Bank of Ayudhya, Kasikornbank, TMB Bank, Siam Commercial Bank, Thanachart Bank, United Overseas Bank (Thai) and the Government Savings Bank.

The MoU was signed by PTT’s chief technology and engineering officer, Chansin Treenuchagron, and executives from the nine banks.

Chansin said the planned cooperation concerning technological and innovation coincided with the “Thailand 4.0” policy in transforming the country’s economic structure into an innovation-driven economy.

The focus will be on promoting and developing financial structure for all parties, in order to create a flexible business operation.

“Thus, trust and confidence will be instituted within the workplace, leading to further expansion of commercial operation,” he added.

The MoU will be effective for a period of two years, during which PTT and the banks will develop polices and strategic directions which will improve financial systems, including insurance, financial derivatives, electronic banking, transactions, and related regulations in order to enhance business flexibility and build stakeholders’ trust, he explained.

“The ratings affirmation reflects our expectations that PTTGC will maintain its strong credit metrics over the next 12-24 months, supported by its robust operating cash flow generation of around Bt50 billion-Bt55 billion per annum,” said Rachel Chua, a Moody’s assistant vice president and analyst.

Over the next two years, the ratings firm expects PTTGC’s adjusted retained cash flow/debt will be around 30 per cent, and that its adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) interest coverage will stay above 14 times, she added.

Vichai Jaivisuthansa settled on the Sacha variety of peanut as the foundation of the business diversification into supplements, guided by a suggestion from a friend. He spent a year researching how to produce an oil rich in omega nutrients from the peanuts. The Organoid brand, since its establishment in 2013, has made steady inroads into the domestic and overseas markets and now generates sales of Bt10 million a year.

Vichai brought his daughter Buntita Jaivisuthansa into the business. She serves as marketing manager of Omega 3.6.9 and Lycopene Co Ltd, the company that Vichai set up for the supplements venture.

In an interview with The Nation, Buntita said the enterprise had benefited from her father’s scientific expertise, citing his studies in organic chemicals for the bachelor’s degree that he gained from Mahidol University.

“My father started his research into the production of an oil rich in the omega fatty acids in 2012,” she said.

“A year into that research, he encouraged a farmer in Kamphaeng Phet to grow the Sacha peanuts in the province. In 2013 he also had a production plant built that can extract the omega-3 nutrient from the peanuts.”

Buntita said the company began producing and distributing the products resulting from his research under the Organoid brand, including the omega-rich oil from the Sacha peanut and a protein powder that is also made from that peanut variety. By 2015, the company was making annual sales of up to Bt2 million.

“I resigned from a post in executive marketing at Sanook.com to join my father in the business in 2015,” Buntita said.

“In my focus on marketing, I sought ways to expand the market for our products by looking at both offline and online channels. I have also been promoting the products in the traditional and modern trade outlets.”

After three years of pursuing these aggressive marketing strategies, the company made sales of up to Bt10 million in 2017. Up to 97 per cent of these came from the domestic market, with the rest from overseas. The company is confident it can sustain sales growth in the double digits each year.

As part of its marketing efforts, the company joined the One Province, One Agro-Industrial Product (OPOAI) programme conducted by Industry Ministry.

The scheme provides training for companies to manage their production costs as well as assistance for finding opportunities in the market. The challenge for the company, said Buntita, is to improve its production capacity and better control production costs in order to maintain the target of double-digit growth in annual sales.

Buntita said that among the ways the company has sought to promote the products is consumer education about their quality as well as by expanding distribution channels. On the online side, this includes activities on Facebook and Instagram and offline, outlets include the Lemon Farm and Bai Miang health food stores.

On the export front, the company is selling into the Asean market, including Vietnam, Cambodia, and Laos. The company is negotiating with importers from China for sales to that key market this year, Buntita said.

“The key to our success is the research and development that we put into products with the use of our own technology. This approach differentiates our business from that of our competitors in the market,” she said.

Buoyed by the double-digit sales growth, Buntita said that the company plans to launch a new item, a coffee-like product from the Sacha peanut that will also go out under the Organoid brand. It will be presented at the Thaifex-World of Food Asia 2018 next week. The event runs from Tuesday to June 2 at Impact Muang Thong Thani in Bangkok.

The company also is researching the production of a cosmetic serum from the Sacha peanut and is looking at a launch this year or the next.

Buntita said that the market for health supplements is valued at more than Bt60 billion a year. The challenge for the family business is to get a bigger slice of this market, she said.

“We are confident in the outlook for our products and believe that once we get more opportunities to explain their quality and the health benefits they offer to consumers, we will improve our business and achieve sustainable growth over the long term,” she said.

B Grimm Power Plc has confirmed that its two major power projects, with a combined generating capacity of 240 megawatts, will proceed as planned despite a change of location.

Company president Preeyanart Soontornwata said the shifting of the project site from Ratchaburi to Samut Prakan would not affect the scheduled commercial operation date, set for 2021.

The company is seeking permission from the Energy Regulatory Commission to change the location of the BGPR1 and BGPR2 co-generation facilities, she said.

At the same time, B Grimm has coordinated with the Electricity Generating Authority of Thailand (Egat), purchaser of the power supply, to make available a grid connection and substation at the new location.

Once approval is granted, B Grimm will commence construction. The plants are to be completed within 26 months, before the power sale agreement with Egat takes effect on June 1, 2021.

“We are striving to meet the timeline and no change is foreseen, at least for the time being,” Preeyanart said.

Nestle plans marketing campaign for cereal

Nestle yesterday announced a marketing campaign for Koko Krunch called “Awake Happiness” aimed at strengthening the brand’s role appeal in the children’s breakfast segment.

“To make children’s breakfast even more fun, Koko Krunch now comes in a new-look Koko Bear shape, which will permanently replace the old shape as part of a brand revamp in many countries in Asia,” the company said.

“The New Koko Krunch combines whole grains and chocolate to offer rich nutrition, fortified with Vitamin B and iron, making it the ideal choice for a healthier and happier breakfast that provides fuelling energy for kids.”

The company said Thai families are more concerned than ever about breakfast.

The programme will focus on providing the bank’s business bankers with the skills to help SMEs digitalise and grow their business. The programme will also continue to include training in other areas, including business and finance management, credit knowledge and trade financing.

With SMEs accounting for more than 80 per cent of employment and 42 per cent of gross domestic product in the country, UOB wants to ensure it can provide the right advice to help SMEs remain competitive in the digital economy, said Sayumrat Maranate, country head of business banking for UOB Thailand.

“Thailand’s economic future hinges on the growth of SMEs,” Sayumrat acknowledges, noting that the bank is already helping SMEs benefit from digital solutions such as UOB BizSmart, a cloud-based integrated digital solution that offers a simple and cost-effective way to manage business administrative processes.

“We have also invested in our people to ensure that they have both the skill sets and mindset to help our SME customers understand technology trends that can help our customers to transform their business and to succeed in the digital era,” said Sayumrat.

Dr Pipop Udorn, dean of Thammasat Business School at Thammasat University, underlined the importance of bankers who understand the specific needs of SMEs.

“SMEs need bankers who understand what it takes to do business in a digital economy and who can help them be more future-ready. This knowledge and competency has implications for how SMEs attain and sustain a competitive advantage,” said Pipop.

Adding digital entrepreneurship to the syllbus of the certification programme will better equip business bankers “to help SMEs achieve and sustain their competitive edge,” he said.

The three-month UOB-TBS Banker’s Executive Certification Programme combines classroom-based study with practical skills training. It was first rolled out in 2017 as part of UOB’s career leadership development programme to encourage continuous training and skills development among its employees. The Bank trained 25 employees last year and expects to train another 25 small business bankers in 2018.

The notes will be issued in tranches with maturities of up to 10 years.

The issuer has an option to redeem the notes after five years.

Proceeds of the issue will be used for general corporate purposes and refinancing.