Published on 04/04/2014
B.Grimm plots course for Asean
B.Grimm, one of Thailand's oldest conglomerates, is aggressively expanding its power business to Japan and across Asean to raise its revenue over 100 billion baht in eight years. Chairman Harald Link said B.Grimm is considering two solar farm projects in Japan with a capacity of 40 megawatts each to further expand its fastest growing power business. B.Grimm Power has been shortlisted for a 360megawatt gas-fired power plant in Mandalay. It is also looking for investment opportunities in the coalfired sector in Myanmar along with Malaysia and Indonesia. In Laos, the company has studied potential investment in a hydroelectric power project under development, Mr Link said. Domestically, B.Grimm formed a 70:30 joint venture with a Scandinavian partner in developing a 45-MW wind farm in Mukdahan province. The company operates four power plants including one in Vietnam, with combined capacity of 733 MW. The group targets expanding its generating capacity to 2,000 MW by 2019 with an additional 3,000 MW based on the licences it was granted, with a combined investment outlay of over 100 billion baht, said Mr Link. "We anticipate strong growth from the energy sector. Yet all our sectors should be stable, especially building and industrial systems, health care and transport," said Mr Link. In recent years, revenue from the power business grew by 41% annually compared with B.Grimm's overall growth of 30%. In 2013, its revenue totalled 25 billion baht for a net profit of 2 billion.
This year, the group projects revenue growth of 20% to 30 billion baht, with 19 billion from B.Grimm Power. The company's total assets, mainly in the power sector, expanded to 43 billion last year from 23.7 billion baht in 2010. Asset value is expected to hit 50 billion baht this year. Its joint venture B.Grimm Maritime, in which B.Grimm holds a 45% stake and the rest shared by two Thai partners, added two more carriers to its fleet for a total of four, with total investment of 5 billion baht. Serving mainly Japanese customers, the vessels carry commodities. "The shipping industry has been slipping since 2009, pushing the price of vessels to an attractive level for us to buy," he said.