Srithai to invest B1.3bn on expansion
SET-listed Srithai Superware Plc has earmarked 1.3 billion baht this year for expansion at all its production facilities in order to serve rising demand, says chairman and president Sanan Angubolkul.
Half of the funds will be used to expand its melamine production capacity at plants in India and Vietnam. The other half will go towards buying land in the Suksawat district of Bangkok, where its first factory has been located for over three decades.
Mr Sanan said funds to purchase the land had not initially been included in the investment budget. After the landlord expressed his interest in selling the property, however, Srithai is moving to purchase it in order to avoid having to relocate its Suskawat plant, where the company’s headquarters is also located.
Regarding expansion, Srithai is investing primarily in developing countries, where demand for plastic and melamine-made household products is growing rapidly. It is currently manufacturing its melamine tableware and plastic products in various Asian countries, including Vietnam, India, Indonesia and China.
Last year, the company spent over 1.1 billion baht to expand its factories in Vietnam, India and Indonesia.
This year, Srithai’s main focus is on expanding its melamine tableware production capacity at its facilities in Hanoi, Vietnam and Gujarat, India.
“India and Vietnam will be major contributors to our growth, especially once our expansion is completed,” said Mr Sanan.
Srithai is also exploring opportunities to acquire shares in companies both at home and abroad.
Srithai is aiming to double revenue to 20 billion baht by 2020, up from 9.9 billion in 2015, on the back of its aggressive expansion plans.
This year it expects to see revenue rise between 6% and 8%, in line with increased production.
Mr Sanan also expects revenue generated abroad to reach 50% of the total, up from 30% at present.
“We hope that production in Vietnam will generate revenue exceeding that from the Thai market. We are aiming to generate 1.4 billion baht in Vietnam alone in the future,” he said.
Srithai is also looking to develop its production lines in order to cover every step of the plastic and melamine manufacturing process.
It further plans to produce high valueadded melamine products which command heftier prices, and therefore larger margins.
The company has produced and distributed various brands of plastic and melamine tableware such as Ektra, Flowerware, Melamineware, Superware, UNICA and Vanda in 120 countries worldwide.
SITHAI shares closed yesterday on the Stock Exchange of Thailand at 2.12 baht, up two satang, in trade worth 3.45 million baht.