White Cloud cements 10% growth view on megaprojects
White Cloud Co, a construction cement maker, expects 2018 sales to grow by 10% to 550 million baht, thanks to new infrastructure and construction projects from the government and private sector.
President Natee Mekrungroj said those megaprojects can beef up the confidence of private companies to expand their businesses.
He forecasts local demand of plastering cement to grow by 40%, mainly from the property sector.
The total mortar cement market, including plastering cement, had a value of 10 billion baht in 2017, with a volume of 10 million tonnes.
“Thanks to higher confidence from the private sector, the real estate market is a key growth engine to push new projects nationwide in line with penetration of the state’s megaprojects from metropolitan to provincial areas,” Mr Natee said.
Founded in 1996, White Cloud is one of six construction cement makers in the country. It has a cement plant in Ratchaburi province with a production capacity of 720,000 tonnes per year for 20 lines. White Cloud has a capacity utilisation rate of 60%.
It positions itself as an original equipment manufacturer, controlling 70% of capacity. White Cloud also has its own cement brand — Singha Mortar — making up 30% of capacity.
The company is focused on rebranding Singha Mortar to be more competitive.
White Cloud set aside 100 million baht for its marketing strategy and upgrading machinery, as a labour shortage persists in the industrial sector. The company also spent 30-40 million baht on an R&D unit.
“It is the first time in 20 years for a marketing and rebranding plan, aiming to claim a market share of up to 40% in the next couple of years,” Mr Natee said.
Anyamanee Mekrungroj, director of accounting and finance, said the company plans to raise the export share in 2018 from 5% of revenue.
Expansion in modern trade outlets and adding to its 50-60 agents in traditional trade are other priorities, she said.