Navis acquires Thailand's Srithai Food Group

Srithai claims to have a “dominant position” in its home market, where growing demand for seasonings and condiments is said to be supported by a rapid proliferation in hotels, quick-service restaurants, full-service restaurants, and cafe chains. The company says it is also experiencing high demand from food service players across Southeast Asia and China.

Navis is expected to drive operational expansions in Thailand and across Asia by leveraging local advantages in agriculture industry regulation, including attractive manufacturing and traceability standards. Thailand is also seen as benefiting from a low-cost production environment for seasonings and condiments due to ready access to ingredients such as sugar, chilies, fish-based flavorings and spices.

In addition to the seasoning niche, Srithai has increasingly positioned itself as a developer of innovative food products, including flavored tea premix powders and ready-to-cook sauces. These products are also targeted at restaurants and beverage chains, which are said to benefit from cost savings, reduced preparation time, and more consistent product quality.

"We are impressed by the development of the company and its ability to continually develop new products that help customers to adapt to the rapid changes in consumer behavior and new industry trends,” David Ireland, a senior partner at Navis, said in a statement. “Srithai Food Group has a strong track record in this space and longstanding relationships with leading local and international MNCs [multinational corporations].

Seasoning and condiments supply for the Asian hospitality sector has proven an attractive category for private equity. Recent activity includes Unitas Capital’s sale of Jiahao Foodstuff, a company that supplies more than 200,000 restaurants across China, to Hong Kong fragrances and tobacco business Huabao. Meanwhile, True North has exited its stake in Indian seasonings maker VKL Flavors to Firmenich, a European strategic.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• Consumer
• Buyouts
• Thailand
• Navis Management
• manufacturing