FRIDAY, March 29, 2024
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Siam Kubota eyes Asean expansion via units in Cambodia, Laos

Siam Kubota eyes Asean expansion via units in Cambodia, Laos

Siam Kubota Corp, a manufacturer and distributor of agricultural machinery, aims to expand its business in Asean via the establishment of new companies in Cambodia and Laos, targeting Bt7 billion in combined revenue from the two countries in 2015.

Phnom Penh-based Kubota Cambodia is expected to help generate Bt5 billion worth of sales and Vientiane-based Kubota Laos, Bt2 billion, as both countries are witnessing rapid growth in agricultural-machinery application, said the Thai subsidiary of Japan’s Kubota Corp. 
The new businesses will develop distribution networks, marketing activities and after-sales and spare-parts service systems. 
Excluding production, sales and logistics, the two new companies will be responsible for marketing management and customer services and directed by Siam Kubota executives to ensure harmonious policy implementation, said president Hiroshi Kawakami.
Meanwhile, the company expects sales in Thailand to reach Bt50 billion this year, having commenced operations this month at its factory at Amata Nakorn Industrial Estate in Chon Buri province, following an investment of Bt3 billion.
Kawakami said the new facility would be the company’s Asean production hub, focusing on developing “total process solutions” to support a full-scale agricultural management system with a view to reducing costs, increasing productivity and enhancing sustainable competitiveness for the Thai agricultural.
The company reported first-half operating results showing 25-per-cent growth in its agricultural-machinery business compared to the same period last year. 
Having achieved first-half sales worth Bt25 billion, the company is confident of meeting the target of Bt50 billion for the whole year.
Siam Kubota’s ratio of domestic and overseas sales is 80:20, with the rising foreign contribution down to the fact that farmers in the region are eager to increase yields to boost their competitiveness, the company said. 
 
Four core pillars
Regarding the domestic market, senior executive vice president Opart Dhanvarjor said Siam Kubota is the leading agricultural-machinery provider in Thailand, due to the success of its “four core pillars”: quality and diverse range of products; strong distribution network with nationwide coverage; excellent after-sales services through more than 180 service centres and authorised dealers; and financial services from Siam Kubota Leasing, which enable farmers to more easily own agricultural machinery. 
These strategies create the highest satisfaction among farmers and result in the company continuously holding the No-1 position in the agricultural-machinery business segment, he said. 
The company is also building a 32-rai spare-parts centre at Navanakorn Industrial Estate in Pathum Thani province, which will apply a warehouse management system to enhance spare-parts management efficiency and support business expansion. 
The Bt500-million centre will serve as the spare-parts distribution station for both domestic and overseas markets, said Opart.
Meanwhile, the principle behind the company’s total process solutions is “to manage machinery solutions concurrently with agricultural solutions covering the supervision of the farming process, land and materials management, logistics system, crop quality, value-added products and agricultural knowledge. The company believes that ‘total process solutions’ is the answer for sustainable competitiveness capability, both in cost and productivity,” he said.
Opart added that to celebrate its 35th anniversary this year, the company had organised a wide range of activities to thank its customers. 
In the first half, the “Gives big and heavy prizes” campaign received positive feedback, with some 70,000 farmers participating through their product warranty cards. 
In the second half, the “Earth Noteworthy: 35th anniversary of Siam Kubota” campaign “reflects the strong determination of the company to have a close relationship with and be bonded to Thai farming society”, said the executive.
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