LT Group eyes Asean expansion

MANILA, Philippines - LT Group (LTG), the listed holding company of taipan Lucio Tan, is looking to set up beverage manufacturing facilities in the Asean region as part of its growth strategy.

In a briefing after the company’s annual stockholders meeting yesterday, Tan’s son Michael said the conglomerate is looking at possible business opportunities in the region.

“We’re looking for opportunities, mostly (in the) beverage (segment),” said the younger Tan, president of LTG.

Depending on the opportunities and the size of the market, the expansion may involve setting up manufacturing plants, he said.

The company is particularly looking at opportunities in the non-alcoholic segment including water, juice or other healthy drinks.

He said LTG subsidiary Asia Brewery Inc. may do the overseas venture on its own or through a local partner.

“The investment will depend on the opportunity. It also depends on the opportunity whether we will find a local partner or we will go greenfield. We will see,” Tan said.

He did not indicate a timetable for the possible expansion.

LTG has a presence overseas but mostly through its banking business, Philippine National Bank (PNB).

At present, the company, through Asia Brewery has an existing partnership with Calidad Pascual of Spain.

ABI Pascual Holdings Pte. Ltd. is a 50-50 joint venture between Asia Brewery and Calidad Pascual. It imports yogurt from Spain and distributes it in the Philippine market under the Pascual Creamy Delight brand, with the aim of eventually building a dairy plant in the Philippines.

Tan said the partnership with Calidad Pascual may also include expansion in the ASEAN region but this would happen only when the local market has been fully utilized.

“We’re still growing our business here,” Tan said, referring to the joint venture with Calidad Pascual.

For this year, LTG is pouring in P10 billion for capital expenditures, 43 percent higher than the previous year’s  P7 billion.

Bulk of the amount will fund the projects of property unit Eton Properties Philippines, and for the technology upgrade of PNB, Tan said.