Encouraged by 14% growth in sales in the first quarter, Hafele (Thailand) Ltd, the local unit of the German furniture fittings maker, is upbeat about achieving 4 billion baht in sales this year.
Managing director Volker Hellstern said first-quarter momentum will drive sales this year to grow by 8% from 3.7 billion baht in 2018, which was 15% higher than 2017.
"The key driver of sales growth will be hardware equipment and improvements by dealers," he said.
Sales in Thailand last year ranked third highest for the company, after the US and UK. India, Australia and Vietnam came fourth, fifth and sixth.
Total sales of the top five markets accounted for more than half of the group's sales.
Hafele Group reported 1.6% growth in net sales worldwide last year, from €1.37 billion to €1.39 billion, 80% of which was generated outside Germany. Adjusted for currency effects, the growth amounted to 5.6%.
Thailand posted the fifth largest sales growth with an increase of 15%, following Argentina (29%), Russia (25%), Indonesia (21%) and Brazil (20%).
"Product quality, availability and innovation combined with outstanding service were key factors driving the growth in Thailand," said Mr Hellstern.
According to Hafele Group, the 37 foreign subsidiaries generated growth of 2.3% in 2018, making a positive contribution.
The parent company in Germany and its five production companies generated a very small increase of 0.4%, attributed to challenges in the direct export business.
The group expects further growth in the mid-single digits in a challenging international market.
It plans to spend €73 million on marketing, logistics, IT and production during 2019.
In Thailand, Hafele plans to invest more than 350 million baht to expand a new warehouse on Bang Na-Trat KM 22 Road.
The expansion will double warehouse space to a total of 24,000 square metres.
The company has spent 40 million baht to renovate showroom Hafele Design Studio on Sukhumvit Soi 64 and upgrade other showrooms.