Ajinomoto invests in Thailand growth

31 Aug 2016

Ajinomoto has announced it will meet growing demand for flavour seasonings in Thailand by investing THB 800 million (approximately JPY 2.4 billion) to increase production capacity for its Ros Dee flavour seasoning at its Nong Khae Factory in Thailand.

Ajinomoto invests in Thailand growth

Ajinomoto has announced it will meet growing demand for flavour seasonings in Thailand by investing THB 800 million (approximately JPY 2.4 billion) to increase production capacity for its Ros Dee flavour seasoning at its Nong Khae Factory in Saraburi Province, Thailand. The company said it is working to further expand its flavour seasonings business to accelerate business expansion in Thailand, the largest base of the Ajinomoto’s overseas consumer foods business.

According to the company’s estimate, the flavour seasonings market in Thailand has grown by approximately 1.3 times over the past five years to approximately 70,000 tons and is expected to grow further in the future as a result of increases in the volume used per household due to more frequent home use and in opportunities for use in the restaurant market, mainly at food stalls, backed by the growth of the middle-income segment.

Ros Dee was launched in 1979 and is currently sold in four varieties. It is used in stir-fry, soup and other dishes as an all-purpose seasoning that gives a meat flavour. Ajinomoto says that sales volume has grown by an average of more than 5% annually since fiscal 2011 and the product maintains the top share in Thailand as a result of cultivating the restaurant market in addition to proactive marketing activities and promoting applications in a wide range of home-cooked dishes.

The company said that automating the packaging process at the Nong Khae factory will increase production capacity for Ros Dee by approximately 40%. The company will also upgrade its equipment to prevent contamination and enhancing traceability for more thoroughgoing quality control.

In its FY2014-2016 Medium-Term Management Plan, Ajinomoto positions Thailand, which is the largest base of the overseas consumer foods business, as one of its “Five Stars” (core countries in ASEAN and Latin America), its major growth drivers. The company has a target of doubling sales by fiscal 2020, compared with fiscal 2012.