NR Instant Produce Public Company Limited (NRF)’s shares have jumped 43% from the IPO value of ฿4.60/share since it began trading on an exchange stock market last year, a new traded stock that went red hot in 2020.
NRF is a manufacturer, supplier and distributor of seasonings, ready-to-eat meal kits, recipe mixes, plant-based foods, instant beverages and water…Seemingly, focuses exclusively on one specific group…But this type of business still has bright prospects for growth despite they are a niche product.
During the nine month period of 2020, NRF already recorded a net profit of 89 million baht, increased from the same period last year of 33 million baht.
According to NRF latest update, the Company has prepared the budgets of US$10 million or equivalent to 299.3 million baht to increase the transaction size into the joint venture between NRF Consumer Company Limited (NRF Consumer), a subsidiary of NRF, and Boosted Ecommerce, Inc. (Boosted) in the US. As a result, the total investment size will be US$ 17 million or approximately 508.8 million baht.
The joint venture’s strategy is to invest in branded products on one of the leading e-commerce sites Amazon.com, which has ethnic, plant-based, and functional product sector, where NRF already has operational capabilities and competitive advantage. For the shareholding structure, NRF Consumer holds 55% of total shares and Boosted holds another 45%.
Initially, the joint venture company will acquire intellectual property, trademarks, expertise and know-how, and other intangible assets relating to Prime Labs, a brand owned by Amazon.com with leading products in the functional sector.
Therefore, NRF expected the said joint venture to strengthen business proficiency and to contribute overwhelming revenues and profit.
The joint venture, moreover, will help NRF to expand additional distribution channels in e-commerce platforms, and will provide more popularity to NRF’s products as Amazon.com is the world famous e-commerce website.
However, the most beneficial from the joint venture is the accessibility to customers’ information and behavior datas which help NRF to understand the needs of the market.