EPG unfolds its 2016-17 business plan
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EASTERN Polymer Group has set a revenue target for its 2016-17 fiscal year at Bt10 billion to Bt11 billion, with a budget of Bt2 billion for capital expenditure and mergers and acquisitions (M&A) to strengthen all three of EPG’s core businesses.
In addition, EPG plans to acquire an automotive business after acquiring TJM, an Australian vehicle-accessories company, last year.
Pawat Vitoorapakorn, chief executive officer of EPG, said that in the 2016-17 fiscal year (April 16, 2016, to March 17, 2017), the company would continue to focus on innovation in order to provide high-quality products to the global market.
For the next two fiscal years (2016-17 and 2017-18), the company set a capex budget of Bt1 billion, consisting of:
- Bt280 million for researching and developing new products and enhancing the production line with automatic and high-speed machinery for thermal insulation products under the Aeroflex brand, both domestic and international.
- Bt400 million for investing in the painting system and the expansion of factory facilities for automotive parts and accessories under the Aeroklas brand.
- Bt310 million for investing in a new Asean factory for the food-packaging business under the EPP brand. The new factory could be modelled after the EPP Phase 2 factory, which is equipped with high-speed technology.
In addition, the company has set aside Bt1 billion for the M&A and joint-venture budget for both domestic and international activities. The company is currently in negotiations to acquire an automotive business to enhance.
“Regarding the progress of 2016-17, the Aeroflex thermal insulation business currently has a domestic backlog of more than Bt500 million,” Pawat said. “In the 2016-17 fiscal year, Aeroflex will increase Asean market share.
“For the automotive parts and accessories business under the Aeroklas and TJM brands, the company plans to launch additional new products such as Black Widow drawers to capture Australian market share.
In addition, Aeroklas is in the negotiation process to co-develop new products such as canopies and van liners. The company plans to increase the European and Oceania market share.
“For packaging products under the EPP brand, the company will grow via an increase in the Asean market, which has a population of more than 620 million, allowing the company to grow international market share.”
Associate Professor Chalieo Vitoorapakorn, deputy CEO, said the company had set a revenue target for fiscal year 2016-17 at between Bt10 billion and Bt11 billion, up by 15-25 per cent from the previous fiscal.
EPG plans to expand its international market share through higher exports from its subsidiaries.
He said the revenue target was based on an assumption of growth in Thailand’s gross domestic product at 3-3.5 per cent and in global GDP at 2.9 per cent, the former driven by large government investment projects and domestic consumption.
“Such factors benefit EPG, especially for construction materials and packaging products.
Moreover, the end of first-car policy will be an additional catalyst that benefits EPG’s automotive-accessories business.”
