SCG Logistics, a subsidiary of SCG Cement-Building Materials, expects 2019 revenue growth of 12% to 22 billion baht, driven by demand from the e-commerce market and Thailand's GDP expansion.
Managing director Paitoon Jiranantarat said the overall economy seems healthy, with many megaprojects set to move ahead throughout 2019.
Such positive factors can drive the e-commerce and logistics markets, he said.
"The local logistics market is worth 2 trillion baht annually, while the e-commerce market has roughly 3.2 trillion baht in both business-to-business and business-to-customer segments," Mr Paitoon said. "These two markets have grown significantly because of people's changing lifestyle and digital penetration."
SCG Logistics has also witnessed a huge opportunity to expand its business to support local small and medium-sized enterprises, business owners and large companies.
"In the past five years, we have achieved average growth of 5.5% per year in revenue, but it would be a challenge for us to keep this level of growth going in the future," he said.
SCG Logistics reported 2018 revenue of 19.6 billion baht, a 21% rise.
Mr Paitoon said the company has set aside a budget of 800 million baht for 2019-23 and will spend 200 million in 2019.
"Mostly, our spending will emphasise digital stuff and new technology to deal with the e-commerce market expansion," he said.
SCG Logistics has transformed its business into digital-driven logistics with digital technologies such as object recognition, robotic process automation and chatbots to accommodate customers, said Mr Paitoon.
The shift to technological and digital platforms will increase the performance efficiency of the entire process as well as speed, accuracy and safety.
The system also enables efficient cost management and supports customer services in Thailand, Southeast Asia and China.
"We expect overseas revenue in 2019 will contribute roughly 4 billion baht," Mr Paitoon said.
In addition, SCG Logistics is in talks with car manufacturers and distributors to purchase a fleet of 100% electric vehicles (EVs) to be used on its logistics routes.
A pilot driving test will involve electric motorcycles.
"We aim to become a green logistics company in the future as we are concerned about zero emissions and the environment, so our negotiations on EVs are expected to conclude very soon," Mr Paitoon said.
For SCG Cement-Building Materials, this business unit recorded a 2018 revenue increase of 4% to 183 billion baht, attributed to the government's public infrastructure, which drove growing demand for cement, as well as the recovery in real estate projects and construction expansion in the region.
Profit for the period stood at 5.98 billion baht, a decline of 7%, hampered by asset impairments in the third quarter. Without those impairments, SCG would have recorded 7.3 billion baht in 2018.