Thai green tea drink maker Ichitan now SET-listed

[webfact]

Thai green tea drink maker Ichitan now SET-listed
By English News



BANGKOK, April 21 -- The Ichitan Group, Thailand's largest ready-to-drink tea beverage manufacturer, began trading today on the Stock Exchange of Thailand (SET), using ICHI as its symbol for trading.

Ichitan Group Chairman and CEO Tan Passakornnatee said he was satisfied with the company's SET stock launch as it opened at Bt16.50, 26.92 per cent above its IPO price.

Ichitan reportedly plans to raise Bt3.9 billion by offering 300 million newly-issued shares to the public at Bt13 baht each.

Mr Tan said that the company succeeded to achieve stock market listing in 3 years 8 months and 17 days from its target of five years.

Sales proceeds will be used to expand production capacity, as the second phase of its factory construction was expected to be completed this year so it can achieve production of 1 billion bottles annually from its initial 600,000 bottles per year.

He expects sales of Bt10 billion within two years from present revenue of Bt6.8 billion.

Last month, Ichitan captured a 49% market share in the ready-to-drink green tea market, he said.

Mr Tan is a well-known businessman having founded the Oishi Group, the second largest tea maker after Ichitan, in 1999. He sold the Oishi Group in 2008 and established Ichitan in 2010.

The Ichitan Group produces, markets, and exports green tea, organic green tea, herbal juices, dragon tea, and other drink products. (MCOT online news)


-- TNA 2014-04-21

[AyG]

I find it quite staggering that the company has achieved listing when its first product was launched in 2011, and have no idea how it has managed to capture almost 50% of the bottled green tea market so quickly. Who knew that naked capitalism could be this easy?

[tingtong]

It isnt naked capitalism.

He founded/owned and sold out Oishi, then the largest tea maker in Thailand ( now #2), a SET traded company also.

For me the shocking is, that based on all that, in 2 yrs he was able to found a competing company with same product lines, pulling on same industry contacts.

Rather questionable business ethic, really.

[AyG]

It isnt naked capitalism.

He founded/owned and sold out Oishi, then the largest tea maker in Thailand ( now #2), a SET traded company also.

For me the shocking is, that based on all that, in 2 yrs he was able to found a competing company with same product lines, pulling on same industry contacts.

Rather questionable business ethic, really.

I'd always rather assumed that "naked capitalism" was the same as a "rather questionable business ethic".

[SheungWan]

Nothing gives rise to more resentment from the 'wise-guys' than the financial success of others starting a business. Sorry, I forgot one: promotion of somebody else in their peer group in a company/institution; that really drives the 'know-it-alls' bonkers.

Edited April 22, 2014 by SheungWan

[peterb17]

Very clever marketing- I would imagine half of Thailand is saving the bottles tops hoping to win a million, think in the latest campaign you can win a Porsche?

He also expanded the range from just green tea- all sorts of flavours now- good for him, the product is made in Thailand, so must provide a considerable number of jobs.

[Loles]

To sale a green-tea company for huge price than during the next month to make a new green-tea company for competitor to the sold company this is full shameless and disgusting thing even in business.

I know many parts of world where he wouldn't survived this step ....

[worgeordie]

It isnt naked capitalism.

He founded/owned and sold out Oishi, then the largest tea maker in Thailand ( now #2), a SET traded company also.

For me the shocking is, that based on all that, in 2 yrs he was able to found a competing company with same product lines, pulling on same industry contacts.

Rather questionable business ethic, really.

The buyers of Oishi,REALLY dropped the ball,their lawyers should have had

a strong contract where he was not allowed to operate the same type of

business for at least 5 years,

But good for him,hes the front for his company,and seems to be a decent person.

regards worgeordie

[AnotherOneAmerican]

I have a fridge full of both companies products.

Very refreshing, I particularly enjoy the +lemon +honey products.

Piriku white tea with lemon is also very tasty.

[Loles]

Worgeordie, the decent sort of person never does it which we are mentioned.

In TH, you may make a strong contract with a football team lawyer and the contract's value is noodle soup price or a bit under.

Anyway the oishi cha-manao is better taste but mr. Ichithan pushes a huge money to the extreme marketing. And the extra joke is, he puts to his huge marketing campaign the oishi owner's money which was got for the oishi by himself.

[SheungWan]

It isnt naked capitalism.

He founded/owned and sold out Oishi, then the largest tea maker in Thailand ( now #2), a SET traded company also.

For me the shocking is, that based on all that, in 2 yrs he was able to found a competing company with same product lines, pulling on same industry contacts.

Rather questionable business ethic, really.

The buyers of Oishi,REALLY dropped the ball,their lawyers should have had

a strong contract where he was not allowed to operate the same type of

business for at least 5 years,

But good for him,hes the front for his company,and seems to be a decent person.

regards worgeordie

Respective company growth in the product area may not necessarily be zero-sum. The OISHI stock price hasn't exactly been devastated by the announcement.

[AnotherOneAmerican]

Anyway the oishi cha-manao is better taste but mr. Ichithan pushes a huge money to the extreme marketing. And the extra joke is, he puts to his huge marketing campaign the oishi owner's money which was got for the oishi by himself.

They do taste different, but I tend to alternate between Oishi and Ichithan green tea with honey and lemon and enjoy both equally.

If I may use that well worn phrase "same, same, but different".

[samran]

It isnt naked capitalism.

He founded/owned and sold out Oishi, then the largest tea maker in Thailand ( now #2), a SET traded company also.

For me the shocking is, that based on all that, in 2 yrs he was able to found a competing company with same product lines, pulling on same industry contacts.

Rather questionable business ethic, really.

The buyers of Oishi,REALLY dropped the ball,their lawyers should have had

a strong contract where he was not allowed to operate the same type of

business for at least 5 years,

But good for him,hes the front for his company,and seems to be a decent person.

regards worgeordie

Even if they did, non competes that long are essentially unenforceable as it can be argued they are a restraint of trade.

[umbanda]

Very clever marketing- I would imagine half of Thailand is saving the bottles tops hoping to win a million, think in the latest campaign you can win a Porsche?

He also expanded the range from just green tea- all sorts of flavours now- good for him, the product is made in Thailand, so must provide a considerable number of jobs.

The Porsche winner was on TV news last week. He had the choice, and get 8.000.000 instead.

[MMarlow]

To sale a green-tea company for huge price than during the next month to make a new green-tea company for competitor to the sold company this is full shameless and disgusting thing even in business.

I know many parts of world where he wouldn't survived this step ....

"He sold the Oishi Group in 2008 and established Ichitan in 2010."

2 years, not 1 month.

Shameless and disgusting? Being incredibly successful is something to be ashamed of? Providing jobs to Thais is disgusting? The only shameful and disgusting thing here is your post.

[HerbalEd]

I find it quite staggering that the company has achieved listing when its first product was launched in 2011, and have no idea how it has managed to capture almost 50% of the bottled green tea market so quickly. Who knew that naked capitalism could be this easy?

It's easy for you to read about but a zillion times more difficult to actually do. The green tea market is one of the fastest growing world-wide businesses in history.

[Bkungbank]

Costing only 15-20 Baht gimmick by give away cash and posh car was no good as many countries sugar were not added into green tea but in Thailand it's bad for health as sugar level is high if consume daily.

[Bkungbank]

Costing only 15-20 Baht gimmick by give away cash and posh car was no good as many countries sugar were not added into green tea but in Thailand it's bad for health as sugar level is high if consume daily.

[HerbalEd]

To sale a green-tea company for huge price than during the next month to make a new green-tea company for competitor to the sold company this is full shameless and disgusting thing even in business.

I know many parts of world where he wouldn't survived this step ....

Usually such deals require former owner to sign a non-compete clause. I signed a five-year non-compete when I sold by business three years ago. But since he was not required to do so by his buyers ... a stupid oversight on their part ... he's done nothing illegal nor unethical.

[HerbalEd]

It isnt naked capitalism.

He founded/owned and sold out Oishi, then the largest tea maker in Thailand ( now #2), a SET traded company also.

For me the shocking is, that based on all that, in 2 yrs he was able to found a competing company with same product lines, pulling on same industry contacts.

Rather questionable business ethic, really.

The buyers of Oishi,REALLY dropped the ball,their lawyers should have had

a strong contract where he was not allowed to operate the same type of

business for at least 5 years,

But good for him,hes the front for his company,and seems to be a decent person.

regards worgeordie

Even if they did, non competes that long are essentially unenforceable as it can be argued they are a restraint of trade.

Restraint of trade? No one is forced to sign a non-compete, so if you sign you have agreed to that "restraint." However, not to agree to a non-compete will usually kill the sale.

[samran]

It isnt naked capitalism.

He founded/owned and sold out Oishi, then the largest tea maker in Thailand ( now #2), a SET traded company also.

For me the shocking is, that based on all that, in 2 yrs he was able to found a competing company with same product lines, pulling on same industry contacts.

Rather questionable business ethic, really.

The buyers of Oishi,REALLY dropped the ball,their lawyers should have had

a strong contract where he was not allowed to operate the same type of

business for at least 5 years,

But good for him,hes the front for his company,and seems to be a decent person.

regards worgeordie

Even if they did, non competes that long are essentially unenforceable as it can be argued they are a restraint of trade.

Restraint of trade? No one is forced to sign a non-compete, so if you sign you have agreed to that "restraint." However, not to agree to a non-compete will usually kill the sale.

Re read what i said - non competed THAT LONG are essentially unenforceable. Short term they are an effective tool, given you usually hold still the IP, know how and customer base, but long term (generally one to two years) things evolve, customers needs change and you no longer have access to new IP of your old firm.

I have no idea or not whether Tan had a non compete or not, though he did agree to stay on with Oishi after the sale and ended up staying there more than 5 years before he moved on.

[SheungWan]

Oishi is up 5%+ today.