SET-listed Saha Pathanapibul Plc (SPC), the distribution arm of consumer product conglomerate Saha Group, has developed strategies to penetrate the regional market in order to cash in on the start of the Asean Economic Community late next year.
Mr Boonchai (second left) together with Saha Pathanapibul senior vice-president Pasook Raksawonkse (second right) introduce the new health drink Starr Infiniti.
The strategies include establishing an international business division earlier this year to prepare for expansion into Asean members.
Chairman Boonchai Chokwatana said the company had already opened branches in Vietnam and Cambodia.
Saha Vietnam was set up with Saha Pathanapibul holding a 100% stake.
The company received a licence to distribute its products in Vietnam in February.
Kanchana Co was established in Cambodia by three companies under Saha Group — Saha Pathana Inter Holding, ICC International and Saha Pathanapibul.
Saha Pathanapibul also sells its products in Indonesia and the Philippines through local distribution companies, said executive director Udomsak Sophonkij.
Excluding sales from border trade, the company's Asean sales are expected to reach 500 million baht this year before doubling to 1 billion next year.
For the domestic market, Mr Boonchai said his company revised its sustainable growth strategy by reducing the number of new product launches next year to only three.
It set up a research and development department at its headquarters to make new products to serve changing consumer demand.
For example, the company recently introduced its new skin health drink Starr Infiniti, which blends three natural ingredients — collagen, Coenzyme Q10 and maqui berries.
The drink is available via various channels such as traditional shops, minimarts, supermarkets, online platforms and BSC cosmetics counters.
The company will spend about 120 million baht to promote its new beauty drink until the end of next year and hopes to generate Starr Infiniti sales of 300 million baht during the drink's first year of availability.
The launch of Starr Infiniti is expected to help drive Saha's overall healthy drink sales to 400-500 million baht by the end of next year, doubling to 1 billion in both 2016 and 2017.
Mr Boonchai said the company saw signs of an economic recovery, with third-quarter sales increasing by 1-3% year-on-year.
The company expects full-year sales growth of 3% to 30 billion baht, about 1 billion below earlier projections.
"We believe the economy will gradually grow next year, and we'll adjust our business strategy to respond to the changes as they happen," said Mr Boonchai.
SPC shares closed yesterday on the SET at 42.25 baht, up 1.25 baht, in light trade worth 95,000 baht.