Fogger clear on listing plan
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Fogger clear on listing plan

Masterkool International Co, a local manufacturer of outdoor cooling and fogging systems, plans to list on the Stock Exchange of Thailand to raise funds for expansion.

The move is aimed at tripling annual sales to 1 billion baht in five years' time.

Managing director Noppachai Veeraman said Masterkool is preparing the listing documents and has appointed Trinity Securities as its financial adviser.

Production at the factory in Chon Buri's Phanat Nikhom district is almost at full capacity, he said.

The company has an immediate need for additional machinery and more facilities to boost capacity while expanding into new international markets.

Mr Noppachai said Masterkool is conducting a feasibility study on potential partnerships with local partners in other Asean members.

Indonesia and Myanmar are the top two countries the company is eying for new facilities, he said.

"Factories in such locations would make our product prices more competitive thanks to lower logistics costs and allow production to meet demand more quickly," said Mr Noppachai.

But he discounted the possibility of any new factories being built outside of Thailand in the next few years, saying the company must first gather customer feedback in each Asean member to make sure building is worthwhile.

Exports have contributed only 30 million baht annually to the company, but the figure is expected to grow by two-thirds this year.

Of the 50 million baht expected, 60% will be from seven Asean markets, particularly Indonesia, Malaysia, the Philippines and Vietnam.

The rest will come from the Middle East, Australia, New Zealand and Africa.

"We've seen a huge potential in Asean countries, particularly Indonesia, where Masterkool products are highly competitive against Chinese brands," said Mr Noppachai.

"Myanmar too, where our sales are expected to surge by seven- or eight-fold to 7-8 million baht this year."

He said after expanding further into Asean, new Asian markets such as Pakistan and Bangladesh will be the next focus, given that their weather patterns are similar to Thailand's.

Apart from entering new countries, Masterkool will beef up business at home.

"Over the next five years, we expect 75-80% of company sales will be domestic," said Mr Noppachai.

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