Banpu expands their portfolio by venturing into the high-end healthcare industry in the United States
Banpu Public Company Limited, a leading international versatile energy provider, is expanding their investment portfolio into a US-based Healthcare Investment Fund in the form of Founding Limited Partner with USD 150 million (approximately THB 4,995 million). This healthcare fund will focus on the medical care and wellness business in the US as they show great potential growth opportunities along with the usage of advanced technologies. In addition, Banpu is getting ready to position itself into a new business dimension by seeking to bring its Life-Betterment solutions to people all around the globe.
Mrs. Somruedee Chaimongkol, Chief Executive Officer of Banpu Public Company Limited, said that “It is undeniable that new diseases could emerge at any time, along with a tendency of global populations to enter the aging society phase and these trends have influenced people to be more health-conscious. As a result, healthcare is one of our New S-curve businesses with the potential for significant investment growth. The US Healthcare sector is an attractive market due to its large size with one of the world’s highest growth rates while the country is also one of the global centers of research and development of world-class medical treatments and technologies. This investment is a part of Banpu’s ‘Antifragility’ approach, which focuses on seeking new business opportunities in this challenging global landscape in order to create a new leap of growth (S-Curve), by focusing on investments into businesses that have high growth potentials, demonstrate progression in advanced technologies, and boast long-term competitive advantages and sustainable returns. Moreover, investing into these areas also lays the foundation for learning and developing expertise in new business fields, which will lead to the expansion of Banpu’s portfolio in the future so as to increase the added value of its businesses in tandem with growth in its existing energy businesses”
During the first phase of the Company’s investment in the healthcare industry, Banpu will focus on investing in medical care and wellness stocks, especially Biopharma R&D and production using innovative technologies to develop personalized medical products and services that effectively suit individual needs, based on people’s different health profiles, aligned with future consumer needs trends, preferably in countries with advanced medical technologies like the US.
Currently, the global Biopharma market has a high growth rate with an expected value of more than USD 1 trillion within the period by 2026 and an expected Compound Average Growth Rate (CAGR) of about 6.4% during 2021-2026. As seen from this relatively high CAGR, this industry has the potential to generate strong cash flows in the long run.
“The United States is one of the key strategic countries where Banpu has developed expertise and experience in the natural gas business in both upstream and midstream sectors. Investing in the US Healthcare Fund is an additional strategic move for the Company to expand its portfolio outside the energy landscape into the medical and wellness industry. However, we are continuing to seek new business opportunities with high potentials that are in line with industrial and economic development trends and meet with the consumer needs of people around the world, in order to mitigate risks and encourage steady and continuous income growth. Moreover, Banpu investment will be based on ESG principles under the concept of Life-Betterment, which will be a part of improving people’s quality of life to create value and sustainable growth for all stakeholders,” Somruedee concluded.
Banpu Public Company Limited is an international versatile energy provider, operating 3 core groups of businesses – energy resources, energy generation, and energy technology – in 10 countries: Thailand, Indonesia, China, Australia, Lao PDR, Mongolia, Singapore, Japan, the United States of America and Vietnam. As of 31 March 2022, Banpu’s assets totaled USD 11.483 billion, an increase of USD 537 million compared to the total assets as of 31 December 2021.