MAI-listed Phol Dhanya Plc plans to invest 200 million baht each year in three to four projects to provide tap water for municipalities, with the aim of achieving revenue of 200 million baht per year.
Chief executive Boonchai Suwanvutthiwat said each project will have an annual production capacity of 5,000 cubic metres and contribute 50-60 million baht in revenue.
The company, which has a core business of safety products, aims to increase its annual revenue from 800 million baht estimated this year to 2.5 billion baht in the next five years.
Phol Dhanya will research the 7,000 municipalities nationwide to find out which ones still lack tap water before seeking negotiations to offer a service.
Typically, each project's life will be about 25 years, while the investment will break even in six years, with an estimated return on investment rate of 25-30%.
Mr Boonchai said the company will invest about 200 million baht per year in tap water projects.
If the project is bigger than 100 million baht, it will seek a partner to share investment. Phol Dhanya is also studying water projects in Laos and Myanmar.
It plans to join hands with partner Hydrotex Plc for tap water and water management in Myanmar.
However, the company has set up a distributor for its drinking water in Myanmar and has already launched a marketing campaign.
It also is studying a feasibility study to set up a sales unit in Cambodia.
Mr Boonchai said revenue this year is expected to dip to 800 million baht from 1 billion due to the economic slowdown, but the company still maintains a 20% growth target for net profit thanks to high profit margins and cost reductions.
Shares of PHOL closed on the Market for Alternative Investment at 4.50 baht yesterday, down six satang, in trade worth 322,000 baht.