A major Thai electricity, industrial and real estate group will invest 51 percent in Herb Treasure Co. for the hemp business.
Rojana Industrial Park Plc. (ROJNA), led by Vice President Chai Vinichbutr and Deputy Managing Director Kanawat Chantaralawan established a joint venture with Herb Treasure Co., headed by CEO Romchalee Chanprasit and Director Arisa Chitsena.
The project starts with an initial 250-million-baht investment to construct 300 greenhouses across 160,000 sq. meters, aiming to extract more than 9 tons of cannabidiol, or CBD, a year, which will generate approximately 1 billion baht revenue per year.
Herb Treasure is well equipped to serve entire hemp value chain from upstream to downstream involving breeding, cultivation, extraction and distribution.
According to Kanawat), three major reasons for this collaboration are:
- Herb Treasure already secured the required licenses i.e., seed importing, cultivation and the only company who received export license.
- Herb Treasure already had customers both local and overseas.
- Herb Treasure has highly efficient, professional and experienced management team, and both companies share the same business vision.
ROJNA also has extensive foreign customers both in Asia and Europe, which can extend the customer base in the future. They also intend to turn CBD into varieties of products, including food, supplements, beverages, cosmetics and especially medical products pending on the Government regulations.
ROJNA’s board of directors approved 250 million baht in the first phase and plan to expand investment further to serve the increasing demand of the market.
According to Romchalee, the company also plan to assist the contract farming including SME and farmers by developing commercial hemp strains to create the opportunity for the farmers, who are the backbone of the country, to have sustainable revenue. Earlier, Herb Treasure had signed MOU with Tobacco Authority of Thailand to coordinate and help the farmers under their network. This will in turn create even more opportunities in the value chain.
This is a significant cooperative venture, according to Panuphol Rattanakanjanapatra, Chairman of Advisory Board of Tobacco Authority of Thailand. He believes that this corporation will create a benefit for their business as well as for the farmers. More than 1,000 tobacco farmers have shown their interest to participate in this initiative project.
Rojana, together with its subsidiaries, engages in the manufacture and sale of electricity from solar cell system in Thailand. The company operates through Real Estate Development and Related Service, Electricity Generating, Production and Distribution Industrial Water, and Medical Services segments. It also develops industrial estates in Ayutthaya, Rayong, and Chonburi provinces; and provides wastewater treatment services. The company was founded in 1988 and is headquartered in Bangkok.