Eureka Design seeks more foreign revenue
Eureka Design believes that domestic purchasing power will remain weak until the knock-on effects of state spending nationwide kicks in late in the year. The situation should revert to normal next year if the government expenditures proceed as planned, it
In the meantime, Eureka is ready to adjust its strategy to boost foreign business revenue to Bt200 million this year, especially with the plan to pursue business opportunities in Vietnam aggressively in the second quarter.
The company is also interested in acquiring a local robot-manufacturing business, which should be concluded at the latest by midyear, said Narakorn Rachapolsitte, the company’s chief executive and managing director.
He added that domestic purchasing power this year was unlikely to recover much because of weak agricultural prices and the sluggish Thai automobile industry. To compensate, Eureka is taking a cautious approach by seeking to boost revenue from foreign markets.
As for 2014 operations, Eureka should revert to profitability despite the loss incurred in the first nine months.
The company targets this year’s revenue at Bt800 million, of which Bt200 million will come from foreign markets – more than the 2-per-cent external contribution projected last year. Eureka plans to chase business opportunities in Vietnam next quarter, after tapping the markets of India and Indonesia, Narakorn said.
The focus this year will be more on non-automotive business, such as foods, beverages and cosmetics, which should account for 25 per cent of total revenue, he said.
Eureka is negotiating to acquire a local robot-manufacturing business via its subsidiary Eureka Automation Co. It declined to reveal how much it would invest in this planned acquisition.
For this year, Eureka has allocated Bt70 million to Bt80 million for other investments, which can be divided into three areas – expansion of foreign markets, Bt35 million to build a new factory, and working capital.
The investment funds will come from a capital increase for Eureka’s existing shareholders, which should amount to about Bt100 million. The conversion of the warrants to buy Eureka’s two-year-old common shares should add another Bt200 million in the future.
