Competition puts pressure on rice packers
Amid high competition in rice-packer trading, with more than 200-300 local rice brands, the companies will have to increase their production capacity and high-value-added products to survive.
Pakin Juthasilaparutt, vice president of CP Intertrade, producer of the Royal Umbrella brand rice pack, said it had invested in rice innovation to increase income for the company.
It recently introduced a new product, instant rice vermicelli that is ready to cook.
CP Intertrade aims to grab a 5-per-cent market share in the first year after introducing the product, generating Bt250 million.
The market value of noodles is estimated at Bt15 billion. Of this, Bt5 billion is for instant noodles. Pakin said the company had tried to invest more in innovation to ensure its growth amid high competition in rice-pack trading in the domestic market.
The retail price for a kilogram pack of instant rice vermicelli will be Bt70, higher than normal rice vermicelli by Bt20 per pack. However, the company is confident of capturing the market as this product is easier to cook than other rice vermicelli, which need to be soaked in water before cooking.
CP Intertrade will also produce and sell snacks made from rice. It is creating its own brand for rice snacks and will soon introduce it for both domestic sales and exports.
Soonthorn Tanyasap, the producer of Kai Jae rice, has invested Bt100 million to expand production capacity and boost competitiveness this year.
Teerin Tanyawattanakul, managing director of the company, said the new plant would be able to double production from the current 10,000 tonnes a month to 20,000 tonnes.
"Sales of the company are projected to increase by 30-40 per cent this year. Although there is high competition in the rice industry, the firm’s strategy is to expand its plants and warehouses to increase economy of scale and focus on a marketing strategy to boost growth," he said.
The company will spend Bt30 million to Bt40 million for its marketing and advertising this year.
Soonthorn Tanyasap has gradually introduced new products to serve the various demands of consumers. So far, it has more than 16 types of rice in small and bulk packs available at modern traders and traditional shops.
