Patkol plans broad expansion in Asean

HO CHI MINH CITY: SET-listed Patkol Plc (PK), a maker of coolers and ice machines, plans to expand further in Indochina in a bid to boost revenue by 10% to 4.07 billion baht this year.

The company aims to have all its core businesses gain a foothold in Cambodia, Laos, Myanmar and Vietnam (CLMV) over the next three years and generate stable income of 100 million baht from each country.

Patkol chief executive Sangchai Chotchuangchutchaval said the expansion will help build sustainable growth.

“Our business in CLMV has just begun, and there is more room to grow in the future,” Mr Sangchai said.

The Myanmar office specialises in food processing and engineering, while Cambodia is the destination for ice machines, Laos for refrigeration and Vietnam for drink machines.

Patkol has invested the equivalent of 50 million baht in food and drinks machines in Vietnam.

The company won a contract to provide machines for a dairy factory owned by Cu Chi Milk Joint Stock Ltd in Ho Chi Minh City.

He said Patkol is in charge of machine design, manufacturing, assembly and installation for Cu Chi Milk, a mid-sized producer of milk, yoghurt and bottled milk tea.

“With our complete team of staff and engineers, we can extend our business in Vietnam and operations in Thailand,” said Mr Sangchai.

Cu Chi Milk director Nguyen Thi Thu Houng said after installing the automatic food manufacturing system, the company found complications in the production process fell and an improvement in the precision of operations.

“Patkol’s manufacturing system has helped Cu Chi Milk become a leading dairy factory in Ho Chi Minh City,” she said.

Mr Sangchai said he believes Asean and its 600-million-plus population will remain the market with the greatest potential for the company.

“When going abroad, Patkol relies on following in the footsteps of a successful business model, in this case the same as we use in Thailand, to ensure similar standards and expertise,” he said.

This year Patkol will invest more than 100 million baht in Thailand to enhance its machine capability and prepare to enter more Asean markets.

During the first nine months of last year, Patkol recorded 2.66 billion baht in revenue for a net profit of 51 million baht.

PK shares closed yesterday on the SET at 3.68 baht, unchanged, in trade worth 273,000 baht.