Eureka Design looks to overseas expansion
Eureka Design is expediting negotiations on business prospects in India and Indonesia, which it hopes to conclude by year-end.
The company plans to expand its overseas markets to push sales into the top 10 in Asean in the next three years. This year, it expects to achieve its revenue target of Bt400 million.
Narakorn Ratchapolsitte, chief executive and managing director of Eureka Design, which designs and manufactures machinery for automobile components, said the company had approached Yamaha in Indonesia and Maruti Suzuki in India with proposals.
Meanwhile, Eureka is negotiating for new order lots with Toyota, Mazda and Nissan, which it hopes to conclude next month.
It is also in discussions with a supplier for Toyota in Japan, as the auto-maker plans to launch a new Hilux pickup.
If successful, Eureka’s deals with major clients could be a gateway to growth in Asean, as the company hopes to push its sales into the top 10 in the region by 2015, from the current top five in Thailand, Narakorn said.
Eureka expects the proportion of overseas revenue to increase to 30 per cent from the current 10 per cent. Next year, Eureka plans to open branches in Indonesia, India and Vietnam, after opening one in Chachoengsao province this past April, in preparation for the Asean Economic Community in 2015, he added.
Eureka aims to grow an average of 30 per cent annually in the next three years and has earmarked an investment budget of Bt70 million to Bt80 million to support this target, of which Bt30 million has already been spent this year.
It is confident that this year’s revenue will reach its Bt400-million target, at least 30 per cent growth from last year’s Bt306.3 million. Currently, the company has backlog orders of about Bt200 million, which will all be gradually realised this year. The company expects continuing strong growth in the automobile industry as Thailand strives to become a regional auto-manufacturing hub, an aim supported by continuing investments by major Japanese car manufacturers.
Eureka expects more major deals that it cannot disclose at this time in the second half of the year, which should help the company exceed its revenue targets for this year, Narakorn said.
Eureka reported first-quarter revenue of Bt94.5 million and net profit of Bt14.71 million.
It expects second-quarter operational results to be close to those of the first quarter. Revenue in the first quarter was a significant improvement over the Bt69 million generated in first three months of 2012, thanks to the fast-expanding automotive industry in the region.
