erage company Ichitan is planning to form a joint venture with Indonesia's Atri Pasifix to construct a new THB1.18bn ($37m) production plant in Indonesia.The investment will be the company's first foreign venture. Ichitan will buy a 50% stake by investing THB592m ($18.47m).
The company expects to benefit from Indonesians' demand for green tea, which is expected to grow at an average of 15% annually.
Ichitan said in a statement that the Atri's distribution channels in modern trade and convenience stores across Indonesia will help boost its marketing and sales opportunity.
The joint venture is expected to be formed by the end of this year.
Ichitan plans to advance THB836m ($26.09m) in loan to Atri Pasifix after the construction of plant and when the sales contract is signed, the company said.
The company also said that it will expand capacity at its existing plant in the central province of Ayutthaya in Thailand, by investing THB750m ($23.4m).
Founded in 2010, Ichitan manufactures and sells beverages including green tea, organic green tea, herbal juice and black tea.
The company offers its products under the Ichitan, Yen Yen, Ichitan Dragon, and Double Drink brands.
