No man is an island, as the famous saying goes. This is particularly applicable to the business world as networking and relationships can enable companies to uncover great opportunities for growth and expansion. Companies regularly forge alliances, joint ventures, and collaborations with other businesses as part of their business development efforts.
The advantages of such collaborations are many: access to a new geographic region with which the partner has familiarity, gaining expertise in an adjacent field that’s beneficial to the business, or sharing knowledge and skills among staff from both businesses in order to better engage their respective customer bases.
Here are three companies that are tapping on collaborations to further their business interests.
1. Boustead Projects Limited
Boustead Projects Limited (SGX: AVM) is a leading industrial real estate solutions provider with engineering expertise in design-and-build industrial facilities for multinational corporations and local enterprises. The group is present in Singapore, Malaysia, Vietnam, and China and is a 53%-owned subsidiary of Mainboard-listed Boustead Singapore Limited.
BPL has forged multiple strategic partnerships during FY 2019 in order to set the stage for the group to grow further in the coming years. One of these is Echo Base, which is a strategic joint-venture real estate fund management and services platform focused on the development, investment, and management of smart buildings and integrated developments.
Another such partnership was DSCO, in which BPL bought a 25% stake for S$4.2 million. DSCO is a provider of specialised building engineering consulting services in the Asia Pacific and will be able to support BPL’s future expansion and augment its construction and development capabilities in high-tech and high-value projects.
These collaborations enable BPL to expand its scope of services and acquire additional competencies in order to successfully bid for future projects.
2. Jumbo Group Ltd
Jumbo Group Ltd (SGX: 42R) is one of Singapore’s leading food and beverage (F&B) establishments, and its network of F&B outlets spans cities such as Singapore, Shanghai, Beijing, Taipei, Bangkok, Tokyo, and Osaka, to name a few. Jumbo has 14 F&B outlets in Singapore and six F&B outlets in China under six different restaurant brands covering a wide variety of cuisines.
Jumbo has been pursuing growth in overseas markets through both joint ventures and franchise arrangements. In February this year, it signed a joint venture agreement with TCI Inc, a subsidiary of KOSDAQ-listed Didim Inc, to establish and operate Jumbo Seafood restaurants in South Korea. In April and June of this year, the group opened its second and third Ng Ah Sio Bak Kut Teh outlets in Taiwan through a franchise agreement with Ho Sing Food Co Ltd.
3. Kingsmen Creatives Limited
Kingsmen Creatives Limited (SGX: 5MZ) is a leading communication design and production group. The group has a network of 21 offices and serves global clients in the following divisions: exhibitions and thematics, retail and corporate interiors, research and design, and alternative marketing.
The group has recently been teaming up with partners to grow the business further. In December 2018, Kingsmen announced a strategic joint venture with The Nassal Company to focus on delivering world-class scenic fabrication solutions for the attractions business in the Japanese market. Nassal is a scenic fabricator for themed environments, and its speciality is in theme parks, resorts, sports venues, zoos, and aquariums. Kingsmen’s tie-up with Nassal will expand its capabilities in delivering high-quality fabrication solutions for theme parks being built in Japan.
In July, Kingsmen also announced an agreement with Vision High (HK) Limited to open NERF Family Entertainment Centres (FEC) in the China market (including Hong Kong and Macau). Recall that this was part of the licensing agreement Kingsmen signed with Hasbro Inc to open NERF FEC in Asia and the US. With this agreement, Kingsmen has just added a third destination to its list.
The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore has recommended shares of Boustead Projects Limited and Boustead Singapore Limited. Motley Fool Singapore contributor Royston Yang owns shares in Boustead Projects Limited and Boustead Singapore Limited.