Nawaplastic Industries upbeat on sales
Government projects to help drive growth
Vinyl construction materials producer Nawaplastic Industries Co, a subsidiary of Siam Cement Group, is upbeat about sales this year, boosted by the launch of new housing supply in the second half and plans to expand installation partners.
Managing director Sumphan Luveeraphan said the sales of vinyl doors and windows under the Windsor brand had dropped in the first half, with most developers freezing new launches of housing projects. Instead, they focused mainly on selling completed units to capitalise on property tax incentives, which ended in late April.
“Our product sales are dependent on new homes,” he said. “New orders have resumed since July, with many developers asking us to enter auctions for new housing projects they plan to launch in the second half. But sales of vinyl doors and windows usually come three months after the launch of projects.”
The company projects to have 1.1 billion baht in sales from Windsor products in the second half, up from 800 million baht in the same period last year, as new housing supply has shown signs of recovery.
From January to June 2016, it recorded around 700 million baht in sales from Windsor, down from 900 million baht in the same period last year, largely due to a 20% decrease in the quantity of new housing supply launched in that period.
Of the amount, 90% was from new houses and the remaining 10% from home renovations. About 70% came from property projects, while 30% was from retail sales.
Given sluggish sales in the first half, the company revised down its sales target from Windsor from 1.9 billion baht to 1.8 billion for 2016. The company still projects a slight increase over last year.
In a bid to boost sales in the second half and next year, it plans to expand the number of vinyl door and window installation partners by one-third from 30 at present over the next 12 months. It is primarily seeking new partners in the Northeast, the lower North and the upper South.
At present, the 30 installation partners nationwide had combined sales of 800 million baht a year. The company aims to generate 400 million baht more from 10 new partners, said Mr Sumphan, formerly deputy managing director who was promoted earlier this year.
The company will also launch new colours of vinyl doors and windows next year, including grey and dark brown, to tap new demand, especially for condo projects needing colours other than white.
Despite revising down its sales target for Windsor, the company is maintaining its overall 2016 sales target at 10-11 billion baht — growth of 5-8% year-on-year. That projection is buoyed by the government’s infrastructure investment plan, including water management, which would boost second-half sales of PVC pipes, which usually account for 80% of the company’s annual sales.
Last year’s market value of PVC pipes totalled 18 billion baht, of which 8 billion was claimed by Nawaplastic Industries.