Saha plans park in Myanmar
Saha Group, Thailand's biggest consumer-products conglomerate, is poised to pour about Bt3 billion into setting up an industrial park in Myanmar once the government there gives the green light.
Chairman Boonsithi Chokwatana said yesterday that the Myanmar project would follow the model of Sriracha Industrial Park, which
houses about 100 companies of the group. It is one of the company’s key production, logistics and distribution bases.
Yangon is the city the company is interested in, but the decision on the park’s location will depend on government policy. It will be a manufacturing base for various products ranging from garments and food to cosmetics.
Saha’s established brands are Mama instant noodles, Farmhouse bread, Lacoste casual clothing and BSC cosmetics.
The park’s output will be sold in Myanmar and also Europe. However, exports to Europe may change because of the European Union’s sanctions against Myanmar.
Myanmar shows huge potential for investment. It is a fresh and large market for consumption. Its advantages include lower labour costs, abundant natural resources and good geography. In particular, its manpower is educated and conversant in English. However, a barrier is the infrastructure, especially for electricity to serve industry.
The firm will move into the Asean market step by step when the Asean Economic Community crystallises in 2015. In preparation for trade integration, Saha is trying to save costs to keep its competitiveness high and also to modernise its operations. The group’s products can already be found in Asean, especially via border trade, but sales remain small.
Domestically, the group’s performance outlook remains bright, Boonsithi said. In the first five months of this year, sales grew 10 per cent, and for the whole year are expected to increase 10 per cent as projected. In the second half, the firm plans to expand via joint ventures and takeovers.
Although Europe is mired in a financial mess, the company has not encountered any problems from the situation. Its shipments to Europe are still marginal. The group’s exports make up 20-30 per cent of its total sales.
Thailand’s economic fundamentals are still stronger than other countries, he said. However, high inflation and political instability are concerns. Despite facing higher costs, especially after the minimum-wage increase, the group has no plan to raise its prices, he added.
