DHA Siamwalla enters logistics in new transition
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AFTER 108 years of doing business in Thailand, DHA Siamwalla, a manufacturer of files and accessories under the Elephant brand, is now entering a new transition called the "Fourth Wave" by diversifying into logistics.
“The emergence of digital technology has significantly affected the paper-related business, which is tending to be flat and slowing down. Sales of files and accessories have been stagnant over the past two or three years,” managing director Suharit Siamwalla said yesterday.
“Our business diversification into logistics service as well as e-commerce will help compensate for such negative signs and maintain our growth and business strength,” he said.
The company last September opened a Bt700-million logistics centre in Ayutthaya’s Wang Noi district to handle about 8,000 stock-keeping units. It can be expanded to 10,000 items.
The company started up in 1907, during King Rama V’s reign, as a small trading firm importing perfume, drugs and paper from Europe. This is known as the “First Wave” of the company.
Suharit, 47, who is among the fourth generation, said the company branched into stationery, which is the “Second Wave”, about 65 years ago, by manufacturing files and stationery products.
In the “Third Wave”, the company started doing marketing and brand-building activities more seriously.
The company will launch the e-commerce business in the beginning of next year fully backed by the Wang Noi logistics facility.
“Logistics will become another strategic business unit, besides production and trading of files and accessories, and stationery products,” he said.
The company is also looking for business opportunities in the Asean Economic Community, especially the CLMV –- Cambodia, Laos, Myanmar and Vietnam.
Penetration of those markets would drive exports and international business to 50 per cent of sales in five years from 30 per cent currently.
“In two years, we plan to open an assembling facility in Myanmar for files and stationery products made at our factory in Thailand.
“Myanmar is a market with growth potential thanks to its population at the same level as ours,” he said.
The plant will cost between Bt80 million and Bt100 million
DHA Siamwalla posted Bt3 billion in sales last year, including exports, and expects sales to reach Bt10 billion in five years.
“We will consolidate our manufacturing and logistics facilities at one place to be more manageable and centralised,” he said.
The plant at the Navanakorn Industrial Estate in Ayutthaya will be closed and all products, including files, plastic accessories and stationery goods, will be shifted to the plant at the Rojana Industrial Park, also in Ayutthaya, which will become the production centre of the company.
The distribution centres on Kingkaew Road in Samut Prakan and at Navanakorn will be closed and all logistics activities will be transferred to the new centre in Wang Noi.
The Kingkaew and Navanakorn logistics facilities will be reserved for providing third-party logistics and warehousing services to outside vendors in the near future.
“During the fourth generation, I would like to see Siamwalla always a young company in terms of having modern and creative business ideas,” Suharit said.
“The company will be more automated in its work and all fat will be eliminated.”
The company will focus on developing innovations and creativity in launching products and technologies, as well as in logistics, service and future investments, he said.
