Lion Corporation, the Japanese maker of detergent and toiletries, is considering a venture to build a detergent factory in Myanmar.
The conglomerate will decide whether to move directly from Japan or through Lion Corporation (Thailand), its joint venture with Thailand's Saha Group.
A decision will be made next month, said a source close to the matter.
Somsak Srisa-ardruk, deputy business executive manager of Lion Thailand, said a factory makes sense considering Myanmar's business potential in the wake of economic reforms.
Lion's detergents are now shipped to Myanmar from Thailand for monthly sales of 6 million baht.
However, the company's products are expensive, so locals perceive them as a premium brand.
Mr Somsak said the company has earmarked 100 million baht for the detergent factory in Myanmar and creation of a new brand that better fits local purchasing power.
At home, Mr Somsak said Lion Thailand will build a 500-million-baht detergent tower, used to spray detergent slurry to ensure uniform and free-flowing powder, at its production base in Chon Buri's Sriracha Industrial Park.
Construction will start in 2015 and when finished double monthly production capacity to 36,000 tonnes for both domestic and export sales.
As well, Lion Thailand has earmarked 60 million baht to promote the new Pao Win Wash Liquid Black & Dark, a concentrated liquid detergent.
Competition in the Thai detergent market is intense, with heavy price-cutting by manufacturers and low brand loyalty by consumers, said.
The overall Thai detergent market is valued at 17 billion baht this year, up by 9% from last year.
Of the total, 32% is from conventional detergent, 43% concentrated detergent and 25% liquid detergent.
Demand for conventional detergent is forecast to grow by 2%, concentrated by 13% and and liquid by 29%.
Lion has a 22% market share overall, and the launch of Pao Liquid Black & Dark is expected to boost Pao's share of the liquid detergent segment to 16% this year from 13%.
Lion Thailand's first-half sales grew by 12%, missing the 15% target.
The company attributed the slow growth to declining purchasing power on the back of the higher cost of living and price rises to cover the new daily minimum wage.
Apart from new liquid detergent, the company will reintroduce its Look floor-care product.
This year, Lion Thailand expects sales growth of 15% to 15 billion baht including 1.5 billion from exports.