COL seeks sundry Asean expansion
SET-listed COL Plc, a stationery, book and office supplies company under Central Group, is diversifying by supplying more products and expanding its presence in Asean.
This move is intended to build long-term sustainable growth for COL, said chief executive Worawoot Ounjai.
The company wants to be known for more than just office supplies, as it aims to provide “total product and service solutions” for individuals and organisations.
COL has begun supplying various products for small and medium-sized enterprises (SMEs) beyond the usual range of stationery, books and office supplies.
“We can find gift baskets, LED TVs, barcode scanners and cash registers or deliver parcels for our SME customers if they want us to help,” said Mr Worawoot. “We can cater to all business needs across the country.”
COL will also provide logistics, product delivery and inventory management services for corporate customers in the near future.
To support its new business strategy, the company aims to allocate 1 billion baht from 2016-17 to build a new warehouse on 45 rai in Chachoengsao province. The first phase of the new warehouse, with 20,000 square metres of space, will be opened in April next year.
“Last year, our overall retail business grew by 2-3% but our performance rose 10%. With the market potential, we will invest a lot to expand our business and support further growth,” he said.
COL this year will allocate 300 million baht to open eight new OfficeMate stores, bringing the total to 73 by year-end. The company will further renovate its existing branches nationwide.
Moreover, the company plans to spend about 1.4 billion baht to expand its B2S stationery and bookstore chain both at home and abroad this year.
Mr Worawoot said COL recently opened its first business supply store in Ho Chi Minh City under its B2S brand. The second branch will be opened in the coming months.
“We have the potential to open around 30-40 B2S stores in Vietnam because of the country’s fast-growing economy, infrastructure developments and many foreign investors who have established their business presence there,” he said.
Apart from Vietnam, the company is also considering opening B2S stores in Myanmar and Laos. The expansion into Myanmar and Laos will take place via COL’s own direct investment or through a joint venture scheme.
COL Vietnam, the joint venture between COL and Nguyen Kim, a leading electrical appliance chain in Vietnam, was set up to operate B2S there. COL holds a 51% stake in the joint venture, while the remaining 49% belongs to its Vietnamese partner.
With these plans, Mr Worawoot expects the company’s revenue this year to reach 12 billion baht, up from 11.8 billion last year, which had increased 9% year-on-year.
Of the total 12-billion-baht projection, about 7.5 billion will come from the company’s OfficeMate business and the rest from B2S, the online marketplace and other areas. OfficeMate’s revenue is expected to reach 10 billion baht by 2020.
Last year, COL posted a net profit of 384.3 million baht, down slightly from 393.7 million in 2015.
COL shares closed yesterday on the Stock Exchange of Thailand at 29.25 baht, up 50 satang, in trade worth 6.9 million baht.