Located on a 190-rai (30-hectare) plot in Pathum Thani, the setup of the new integrated facilities is in line with the company’s plan to grow sales and contributions from overseas markets, especially CLMV countries (Cambodia, Laos, Myanmar, and Vietnam), China, India, and the US. Neo Corporate targets its sales revenue to reach Bt10 billion by 2022, up from Bt6.6 billion this year.

Sutthidej Thakolsri, chairman and managing director of Neo Corporate Co Ltd, the leading Thai manufacturer and distributor of consumer products under the brands Fineline, D-nee, BeNice, Tros, Eversense, Vivite and Tomi, said that the company’s total sales revenue for 2022 will rise to Bt10 billion, of which 25 per cent will come from exports. In 2018, Neo’s exports contributed 14 per cent of its overall revenue.

“We are planning to export more to China, India and the United States. Neo is currently assessing the plan to establish overseas offices. However, this would not happen in the near future,” he said.

“We have invested in learning and knowledge centres at the new factory and the R&D centre. We plan to develop raw materials in Thailand, to be used in our export products. In strategic terms, we have developed and maintained our business in a more upstream direction,” said Sutthidej, adding that the R&D centre also reflects the company’s vision of introducing innovative products for the premium segment. They will also focus on efficiency enhancement and cost-cutting through using robots in the production line in order to double the speed of production, he said.

Sutthidej said the Bt2-billion investment in the new facility included the costs of land, the setup of various systems, as well as the new production line – a partially automatic, robotic system. The investment also covered the Bt400 million warehouse, equipped with the AS/RS system (Automated Storage and Retrieval System) for storing products. The system promises efficiency and the ability to save up to 60 per cent of storage space, thereby reducing operating costs. The robotics system will be deployed for a faster and more efficient manufacturing process, while workers can improve their skills in working with robots. Over 10 high-speed automatic bottling and packing (pouch) robots have been installed.

He said capacity of the new factory will increase by between 100 and 125 per cent from the company’s old factory in Min Buri, which was closed down at the end of last year.

“We gradually transitioned each part of the manufacturing process to the new factory. We started manufacturing at the new factory for the first time in August last year. Currently, the new factory manufactures all products of the company,” said Sutthidej.

He said that the company has focused on various marketing research, conducting over 200 studies per annum to develop and increase product quality to meet international standards and satisfy the constant changes in consumer behaviour of all target segments. The company has also collaborated with partners and world-class institutions to introduce new innovations, ensuring, Neo Corporate’s products remain popular among Thai consumers. The company has also marketed its products overseas.

To enhance its competitive advantage, Neo Corporate is pushing for the development of new innovations for the natural and organic segment. Some have already hit the shelves, including Fineline fabric softener that contains highly concentrated softening chemicals derived from natural sources; D-nee baby fabric care, the first organic product with France’s Ecocert certification and unique scent which makes it highly popular in Thailand and the CLMV markets; and BeNice shower cream that boasts the double-firming quality derived from wheat protein, micro collagen and fruit essence. The shower cream contains high vitamins and anti-oxidants, being an exclusive formula of BeNice and the first product of its kind in Thailand.

The company will also invest in innovative machines to boost productivity and reorganise its business to increase sales by 7 to 10 per cent in this year.

Pimol Srivikorn, chairman of TCM Corporation, said the company was positive about overall economic growth due to the upcoming general elections, state and private investments in large projects, growth in the property sector as well as growth in tourism.

“In order to boost our growth as well as continue creating profits for our stakeholders, we will increase production efficiency and capacity in all businesses by adopting new technology and innovation,” Pimol said.

The company has also divided the management structure into three core businesses: TCM Flooring, TCM Living and TCM Automotive. They will continue expanding into new emerging markets that have high potential in the Middle East and Asia, as well as promoting their products under the TCMC umbrella to get more recognition globally.

“We are continuing with our goal to be a world leader in each of our businesses. For instance, with TCM Flooring, we will join international exhibitions and focus more on casino, cruise and luxury hotel markets. Over the past few years, our firm has shown outstanding growth via our merger and acquisition strategy. We have also changed the name and logo, which was inspired by the Ruppell’s griffon, which reflects TCM’s great vision. “The new logo is easily recognisable and provides inspiration for the management to move towards sustainability in our sixth decade and for more decades to come,” Pimol said.

Under the 2019 plan, TCM Flooring will promote the “Royal Thai” and “Carpets Inter” brands to gain more recognition globally, particularly in the US, Europe, Middle East and Asia. Last year, TCM entered Japan by appointing Tori Corporation as a sole distributor of “Royal Thai” products.

In the domestic market, TCM will promote the two brands separately, with each brand serving a different group of customers.

As for TCM Living, the company has been selling products under the brands of Alstons, Ashley Manor, AMX Design and Alexander & James in the United Kingdom. Last year, the company also took the Alexander & James brand to the US, Dubai, the Netherlands, Thailand, China, South Korea, Australia and New Zealand, and plans to expand further in markets where the purchasing power is high. TCM also aims to open its first Alexander & James flagship store in Bangkok, which will be used as a permanent gallery for international customers.

For TCM Automotive, the firm will focus on research and development with the aim to expand the market to cover every automotive brand manufactured in Thailand. Its aim is to compete in both price and quality, and is also working on developing carpets for automobiles that can absorb sound and are lighter.

Pimol said TCM Flooring is expected to contribute 35 per cent of income this year, TCM Living 50 per cent and TCM Automotive 15 per cent. Overall, the domestic market is expected to contribute 25 per cent of the revenue, while the remainder will come from overseas markets.

The group recorded a consolidated net profit of Bt6.9 million for the year ended on December 31, 2018, a year-on-year decrease of Bt378 million or 98.2 per cent, Kittiphun Anutarasoti, president and chief executive officer, announced yesterday.

The unaudited consolidated financial results show profit before tax decreased by Bt217.6 million or 44.5 per cent year over year, to Bt271.2 million.

The decrease came mainly from a 9.6 per cent increase in operating expenses and a lower net fee and service income and other income of 7.0 per cent and 2.6 per cent respectively.

This is offset by a 5.3 per cent growth in net interest income and a 2.6 per cent decline in provisions, the bank reported.

On a year on year basis, CIMB Thai group’s consolidated operating income increased by Bt381.7 million or 2.9 per cent from 2017, reaching Bt13.53 billion from higher net interest income of Bt544.3 million, or 5.3 per cent year on year, mainly from loan expansion and higher interest income on investments.

Net fee and service income decreased by Bt136.5 million or 7.0 per cent, due to higher fees and service expenses. Other operating income decreased by Bt26 million or 2.6 per cent due to lower gains on trading and foreign exchange transactions, partially offset by lower losses on financial instruments designated at fair value through profit or loss and an increase in gains on sale of NPLs.

For the year ended December 31, 2018, operating expenses increased by Bt733 million or 9.6 per cent year on year, mainly from higher personnel costs in line with the Bank’s “fast forward” expansion strategy and loss on sales of properties. This resulted in a higher cost-to-income ratio of 61.7 per cent in 2018 compared to 57.9 per cent in 2017.

Net Interest Margin (NIM) over earning assets stood at 3.71 per cent in 2018, compared to 3.89 per cent in 2017 as a result of lower yield on earning assets.

As of December 31, 2018, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at Bt227.8 billion, achieving an increase of 6.9 per cent from December 31, 2017. Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at Bt234.3 billion, an increase of 6.5 per cent from Bt220.1 billion at the end of December 2017. The modified loan-to-deposit ratio was higher at 97.2 per cent compared to 96.8 per cent as of December 31, 2017.

The gross NPL stood at Bt9.9 billion, with a lower gross NPL ratio of 4.3 per cent compared to 4.8 per cent as of December 31, 2017. The lower NPL ratio was due to more efficient risk management policies, improved asset quality management and loan collection processes, as well as the sale of some NPLs in 2018.

CIMB Thai Group’s loan loss coverage ratio increased to 107 per cent as of December 31, 2018 from 93.2 per cent at the end of December 2017. On December 31, 2018, its total provisions stood at Bt10.5 billion, showing an excess of Bt5 billion over Bank of Thailand’s reserve requirements.

Total consolidated capital funds as of December 31, 2018 stood at Bt47.9 billion, while the BIS ratio stood at 19.3 per cent, 14.1 per cent of which comprised Tier-1 capital.

Traveloka, a leading technology company providing online travel and lifestyle booking for domestic and international destinations, yesterday introduced its latest feature, “Flight Status”, to enable users to track flight status in real time.

This feature aims to make it easier for users to track flights in various conditions, and can be both the fliers and those who want to pick up their family, friends or colleagues at the airport.

Tee Chayakul, country manager at Traveloka Thailand said, “We are always committed to accommodating user needs, [and] one of them is tracking their flight status. For people with high mobility, we want to provide flight status information that is presented in a convenient and easy to access way.

The company also wanted to make it easy for people who have arrived at the airport and do not want to search for a departure schedule board, he said.

Overall vehicle sales hit 1.04m units last year

Up to 1.04 million vehicles were sold in Thailand last year, according to figures from Mazda Sales (Thailand) Co Ltd (MST).

Mazda sold more than 75,000 vehicles in the country last year, the report said, to achieve a 6.7-per cent market share.

The company plans to further grow sales by another 5 to 10 per cent this year, said MST president Chanchai Trakarnudomsuk.

“This year the projection for the Thai auto market is 1.03 to 1.05 million vehicles, and Mazda plans to sell more than 75,000 vehicles this year, said Chanchai at a company press conference in Bangkok yesterday.

Mazda achieved growth in 2018 despite having no new models that year, but in 2019 the company plans to launch six new models in Thailand, said Chanchai.

KFC adopts a tea habit

Thai tea lovers can for the first time get their fix at KFC. A concentrated Thai tea with a mellow and milky flavour will be available in three styles – cold Thai tea, Thai tea float, and cold volcano float black crunchy. They start at Bt25 until January 30 (or until the product runs short) at all KFC branches.

KFC reserves the right to change conditions without prior notice.

The Volcano Float Black Crunchy is not available at Bangla Mall, Phuket, Indra Water Gate, Dream World, Royal Garden Pattaya, Jung Ceylon Phuket, Don Mueang Airport and IMPACT Muang Thong Thani, including all branches that do not sell cold drinks or ice cream.

Banpu takes roadshow to Japanese investors

Banpu Public Company Limited (BANPU), a leading integrated energy solutions company in Asia-Pacific, in early January held a roadshow to boost confidence among over 10 large financial institutions and investors in Japan.

During the roadshow, top executives presented Banpu’s “greener & smarter strategy” and its direction to continuously and sustainably expand the growth of the group’s businesses in 10 countries.

The three core groups of businesses are energy resources (coal and gas, including related operations such as marketing, training, logistics, fuel procurement, and transmission), energy generation (coal-fired and renewable power plants), and energy technology (total solar energy solutions, energy storage systems and energy technology systems).

The roadshow received a positive response, according to a press release yesterday from the company.

Financial institutions and investors agreed to support business expansion both in Japan and other countries and affirmed Banpu’s sustainability strategy and the potential to create added value and maximise shareholder return over the long run.

Somruedee Chaimongkol, chief executive officer, Banpu Plc, said that Banpu’s energy resources group has quality assets that provide a sustained margin and would generate a high return on investment in 2019.

The coal business continues to grow thanks to rising consumer demand and a high average selling price.

Meanwhile, natural gas production capacity has increased over the past year. The energy generation group boasts decades of experience in the power business in Asia-Pacific under the operation of Banpu Power Plc and strong integration from other Banpu businesses.

In 2019, power generation capacity is projected to grow more than 300 MW, particularly from solar farms in Japan, which are well supported by the government and financial institutions, allowing the projects to progress as planned.

Somruedee said the company is ready to move forward to enhance the potential of its energy technology group by maximising innovation to create solutions for modern energy consumption under Banpu Infinergy Co Ltd’s operations.

This will also help accelerate Thailand’s progress toward a smart city in line with the Energy 4.0 policy, she said.