“To reach this milestone, we need to respond to increasing demand not only from future expansion of BJC and its affiliates such as Thai Beverage but also from outside clients, particularly those who are expanding overseas,” Pattaphong Iamsuro, president of the company’s packaging supply-chain business, said recently.
“As we are in the packaging supply-chain industry, having a strong base in glass and can production appears not to be enough for future growth and evolving demand in the market, particularly in food and beverage businesses.”
He said options would range from the company’s own investment to joint ventures to mergers and acquisitions.
He said several deals were under negotiation, with at least one expected to be sealed by the end of this year, but no further details could be revealed at this stage.
Last year, the packaging industry was valued at Bt30 billion, posting single-digit annualised growth. Plastic packaging took the lead, followed by aluminium cans and glass containers.
Euromonitor’s latest research suggested that convenience remained a key factor in the packaging business, while small pack sizes were gaining prominence.
This week, BJC announced a Bt2-billion investment in the construction of a new furnace with production capacity of 300 tonnes of glass a day, to cater to rising demand for glass containers. The new plant in Saraburi province is scheduled to commence operations by the end of next year.
The plant will be on a 95-rai (15.2-hectare) plot comprising three sites managed by BJC’s subsidiary Thai Malaya Glass. It will be the second site where BJC manufactures glass containers for beer and other beverages, food, pharmaceuticals and other products.
When fully operational, the new furnace will give the group an overall daily glass-production capacity of 3,800 tonnes, which is seen as sufficient to meet demand from domestic customers and those in Cambodia, Laos, Myanmar and Vietnam.
In the first half of the year, sales from the group’s packaging business were Bt5.356 billion, some 15.7 per cent higher than in the same period last year – with small and medium-sized enterprises accounting for 20 per cent of the client portfolio.
Buoyed by this performance, BJC is maintaining this year’s revenue target at Bt11 billion, representing a 16-per-cent rise, Pattaphong said.