Overseas M&As may be part of Srithai five-year plan
Srithai Superware, the world's leading manufacturer of melamine tableware, expects to finalise its five-year plan (2013-17) next month, which could include mergers and acquisitions in European countries, said Sanan Angubolkul, chairman and president of th
The company expects the M&A details to be known after 2015.
“The agent for Srithai in Europe offered to sell the business, but the company is undecided because we do not have enough manpower to handle the business overseas,” he said.
Apart from the one in Europe, small companies in Asean have offered to sell their businesses to Srithai.
“We are not in a hurry to take over businesses in Asean because we want to assess the results of the establishment of the Asean Economic Community in 2015,” he said, adding that the company needed to study the relevant laws in other countries.
Even though the company has not finalised the five-year plan, Sanan said that next year it would enter a joint venture with a Japanese partner to set up a second plant in Jakarta. Its first plant in Indonesia is in Surabaya.
At another plant in Vietnam, Srithai will increase the production capacity of melamine products by 40 per cent to bolster its sales revenue to Bt100 million next year from Bt60 million now.
Overall, increased production capacity next year will help boost revenue to Bt9 billion, higher than the expected revenue of Bt8 billion this year, he added.
He said that even though the business was affected by the euro crisis and the uncertainties plaguing the US economy, the company had gradually increased capacity. Sales revenue this year should grow by 7 per cent, higher the previous forecast of 5 per cent.
“The melamine [tableware] business generates a healthy margin, so we are ready to invest Bt1 billion next year to purchase machinery and modules. The money for expanding capacity will come from loans,” he added.
