Patkol rides growth in regional food industry
Patkol, a manufacturer of ice and food-processing machines, will enjoy 7-per-cent growth in turnover this year from Bt2 billion last year thanks to the fast-growing food industry in the region.
"The regional market, with a population of 700 million, or more than 10 times Thailand’s, has huge potential. The implementation of the AEC by the end of this year will further benefit businesses when tariffs are eliminated," managing director Sangchai Chotechuangchutchaval said yesterday.
About 80 per cent of Patkol’s sales are from the domestic market and 20 per cent from overseas, including the Asean Economic Community. "But in seven years, our turnover will be 50:50 local and foreign," he said.
To stay competitive when Asean becomes an economic community, Patkol has set up offices in Indonesia, the Philippines, Malaysia, Vietnam and Myanmar. While Indonesia, the Philippines and Malaysia are the major income generators thanks to their size, Myanmar is tipped to become a very significant market.
"The tourism boom in Myanmar has increased demand for ice dramatically. Its manufacturing, especially food processing, will be next and we will grow our business along with our customers," Sangchai said.
The company has installed its dairy machines for two customers in Yangon – Red Horse Dairy Industries, which is Myanmar’s market leader in sterilised milk, and Thai-Myanmar Dutch Mill Myanmar Co, the producer of pasteurised milk under the Dutch Mill brand.
Patkol has an advantage in expanding in the AEC as it receives business from old customers – both local and foreign firms in Thailand like Dutch Mill – that expand into Myanmar or other Asean countries. It also wins new clients in the new markets.
"Our business in Myanmar alone totalled Bt100 million last year and we believe that it will show double-digit growth this year," he said.
Patkol provides machines and services for the liquid-based food industry, drawing on more than 50 years of experience in liquid-food processing machines and refrigeration. In Thailand, it is the market leader in ice-making machines.
"Our strength, besides expertise, is that we provide solutions to suit our customers’ demands and budgets. More important, we provide Western-standard equipment at more affordable prices, which comes with good customer service," he said.
