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Gunkul Engineering, a renewable energy developer, and Jay Mart, an IT retailer, have bolstered their joint venture JGS Synergy Power through a share exchange worth 500 million baht each. This is to capitalize on the growing demand for rooftop solar panels.
Gunkul hopes that the cooperation will help customers plan their solar energy technology payments more efficiently through a range of financial solutions including instalments without having to spend a lot of money.
According to the company, solar panels could be a great alternative for businesses that want to reduce their electricity costs by using the state grid.
JGS Synergy was founded in March. It initially focused on the solar roof business and credit offers.
Adisak Sukumvitaya, chief executive of Jay Mart, and Gunkul board chair Gunkul Dhumrongpiyawut made the share swap.
After announcing a preliminary memorandum to create the joint venture, the companies agreed to another share exchange of 500 million baht each in December 2021.
Gunkul invested 50% in JGS Synergy while Jay Mart owned a 40.1% stake. Singer Thailand Plc held the remaining 9.9%. Singer Thailand Plc provides hire-purchase service.
JGS plans to list on the stock exchange in 3 years. Recently, the company raised its 2022 revenue projection to 150 million baht, up from 100 million in March.
Gunkul stated that customers will be able to purchase more expensive energy technology if they have access to the right products and services, such as retail businesses and credit.
Gunkul’s website reports that many large and small businesses are still waiting to have rooftop solar panels installed at their locations.
Gunkul had previously predicted that its revenue would rise sharply by 72% and 16 billion baht in the next few years. This is due to an expansion of several businesses, including clean energy and cannabis.
According to Mr Adisak, the most recent share swap has reaffirmed both sides’ trust in the long-term business partnership via joint enterprise.
Jay Mart is targeting JGS as one of three major investments this year, he stated. Jay Mart has set aside 2 billion baht to invest in three companies this fiscal year, stated Mr Adisak.
Jay Mart first purchased a 25% stake of JayDee Group for 250 million baht, which was a partnership with an electric appliance dealer. Jay Mart also invested the 40.1% stake at JGS.
Third, Jay Mart invested into Thailand Amz Co in order to develop integrated commerce platforms for the country and provide financial services to these platforms to enhance its ecosystem. Jay Mart expects these new investments to bring in revenue starting this year.