Le Pan’s big rise: CPRAM factory to bake up 20% market share
A leading ready-to-eat food manufacturer CPRAM Co Ltd, and owner of the Le Pan Bakery brand under the Charoen Pokphand Group inaugurated a new factory in Chon Buri in a bid to capture a 20% market share in the Thai bakery sector this year.
CPRAM President Wisade Wisidwinyoo announced that the new facility, valued at 2 billion baht, boasts a production capacity of 2.4 million items per day and is currently fully operational.
CPRAM now operates two bakery factories within Thailand, with the other located in Lat Krabang, Bangkok. Combined, these factories offer a total production capacity of approximately 4.4 million items per day, according to Wisade.
The company runs 16 food factories nationwide, spread across seven locations, said Wisade.
“The new factory is strategically positioned to meet the increasing demand in the bakery business over the coming years.”
He explained that CPRAM plans to expand its factory network to cover all regions of Thailand, aiming to enhance its supply chain system.
Wisade noted that the ongoing Russia-Ukraine conflict has affected the price of wheat flour, a key raw material for bakery products.
However, he mentioned that the price of wheat flour has decreased following an increase in global supply.
Currently, the flour price remains higher compared to three years ago but the company is managing costs through advanced purchases of raw materials as Wisade remarked.
The company will maintain its current price as much as it can, and if it is necessary to raise the selling price, it will be the last player to do so as he added.
Thailand’s sluggish economy is unlikely to significantly impact the food sector, as food is considered a necessary commodity. However, the company must set its prices to be fair and reasonable for consumers as said by Wisade.
He projected the local bakery market to be worth 40 billion baht this year and reiterated the company’s aim to secure a 20% market share.
As Wisade concluded that CPRAM is targeting revenue to reach 31 billion baht this year, with bakery revenue anticipated to account for 30% of the overall figure, reported Bangkok Post.
