Confident Saha Group plans B3bn investments
Saha Group, the country’s leading consumer product conglomerate, plans to resume its investments in the second half of this year with a 3-billion-baht budget as it foresees an improved economy.
The group has postponed new investments for two years because of the economic slowdown and weak consumption.
Chairman Boonsithi Chokwatana said Saha Group is confident the country’s economy will gradually improve in the second half and even more next year, adding that positive factors are the government’s policy for the Eastern Economic Corridor (EEC), special economic zones and better farm prices.
The EEC is helping to draw private investment while government spending on infrastructure projects will increase to build a modern and integrated transportation network, he said. The problem of household debt should ease next year.
“If the EEC is successful, the Thai economy will be red-hot again like with the Eastern Seaboard boom,” he said, adding that he wants to see the exchange rate at around 36 baht against the US dollar.
Therefore, the group will allocate about 3 billion baht to expand its business this year. About 1 billion baht will be spent to boost car airbag system capacity at Toyobo Saha Safety Weave Co Ltd, a Thai-Japanese
venture in Phra Pradaeng district of Samut Prakan.
About 1.5 billion baht will be used to build a new distribution centre via Tiger Suvarnabhumi Distribution Center on 50 rai of land near Suvarnabhumi airport. This large distribution centre will have an area of 72,000 square metres and is due to open in the second quarter of next year.
The remaining budget will be used to produce laces and socks at Maesot Sakae Lace Co’s factory in the group’s industrial park in Tak province, which is also in a special economic zone.
Funding will be raised by Saha Pathana Inter-Holding Plc.
“The spending power of consumers will increase from now on due to the improving agricultural sector,” Mr Boonsithi said.
He said Saha Group sales have so far been stable and the group hopes the 21st
Saha Group Fair to be held from June 29-July 2 at Queen Sirikit National Convention Center will spur a shopping spree.
The group plans to launch various products this year and expects its total sales to grow faster than the country’s GDP.
Mr Boonsithi said Saha Group will gear toward the Thailand 4.0 policy by relying more on the Internet of Things in its factories, warehouses, sales and supply chain.
Boonkiet Chokwatana, chairman of ICC International Plc, urged the government to relaunch Shop Chuay Chart, a campaign giving shippers personal income tax deductions, every month until year-end.
“Overall consumer spending power in the first five months did not recover because the economy slowed,” he said.
“I don’t see a clear economic improvement in the second half but it would be good if our sales this year are on par with last year’s level at 13 billion baht,” he said.