YPB Group Ltd (ASX:YPB) has secured a Master Service Agreement (MSA) with a third channel partner in Thailand, Jirawattano Co Ltd, offering the company immediate access to a broad range of consumer goods industries that produce high-volume products.
This MSA shows that YPB is making rapid progress in Thailand with its market entry plan.
The new channel partner serves a broad range of consumer goods producers and its clients hold the prospect of yielding meaningful, recurring volumes for YPB’s solutions – although any assessment of such possible volumes is not able to be quantified.
Consumer goods access
Bangkok-based Jirawattano provides a best solution sourcing service to a variety of consumer goods companies in Thailand across a range of printing and packaging products including brochures, manuals, leaflets, labels, bottle labels and cap seals amongst others.
YPB’s new partner will determine and source the best fit and best value products from printers and packaging suppliers for its customers including KCF (Kasemchai Food), GFPT, Biofresh Meat, Suree Interfood, Freedmind, Big C, Le Skin and a number of electronics and appliance companies.
Chief executive officer John Houston said: “Thailand and the broader ASEAN region represents a significant opportunity for YPB that, to date, has not been developed.
“Given the infrastructure of our technology head office in Bangkok, the size of the Thai market with nearly 70 million inhabitants and the high incidence of counterfeiting, we are well-placed to grow a meaningful business in Thailand.
“Our new strategy has been to employ sales resource with an extensive, relevant network we have quickly established access to potentially large, high recurring volume customers.
“If our revenue base grows as expected, we will successfully leverage our established position in Thailand.”
Series of partnerships locked in
The MSA is for a three-year term and gives Jirawattano the right to promote and sell YPB’s product authentication technologies to its existing customer base and new potential customers in Thailand.
Under the agreement, Jirawattano will earn a commission of 12% of YPB’s revenues on every purchase order.
This partnership follows the recent negotiation with Specific Products for the Thailand tobacco and tax stamp industries, with Jirawattano also undertaking considerable due diligence on YPB’s Connect Platform and T2 Tracer.
Its decision to actively take YPB’s current generation products to its customers is a further endorsement of both their technical strength and commercial relevance.
Jiarawattano’s motivation is also in part to help reduce the cost of counterfeit to its customers and their consumers, given the scale of counterfeiting in Thailand.