TOA expands to Cambodia, Indonesia

TOA expands to Cambodia, Indonesia

A staff checks stock at TOA factory in Ho Chi Minh City in Vietnam. Thailand’s leading paint maker is set to operate its new plants in Cambodia and Indonesia by the end of 2015. (Photo by Siriporn Khanakorn)
A staff checks stock at TOA factory in Ho Chi Minh City in Vietnam. Thailand’s leading paint maker is set to operate its new plants in Cambodia and Indonesia by the end of 2015. (Photo by Siriporn Khanakorn)

TOA Paint (Thailand), the country's largest paint manufacturer, is set to expand production in Cambodia and Indonesia by the end of this year, according to president Pongcherd Jameekornkul.

TOA expects to begin manufacturing paint in Cambodia by the end of this year and in Indonesia early next year.

It aims for 18.6 billion baht in revenue this year, up 12% from 2014, when it recorded 16.6 billion baht in earnings. Of the projected 2015 revenue, 16.2 billion baht will come from the domestic market while the remaining 2.4 billion baht will come from Asean. 

Mr Pongcherd said the opening of new factories in Cambodia and Indonesia would expand the company’s production base regionally, as well as prepare it for Asean’s economic integration at the end of 2015.

He claimed TOA has been the No.1 paint brand in Asean by volume and is ranked 11th in the Asia-Pacific market in 2014.

TOA has plants in Thailand, Laos, Malaysia, Myanmar and Vietnam. Its next destination after Cambodia and Indonesia is the Philippines, Mr Pongcherd said. 

Across Asean, he said, international brands such as those from the US and Europe dominate in countries with higher per-capita gross domestic product (GDP) than Thailand's. More affordable local brands are more popular in countries with lower per-capital GDP.

Vietnam contributed about 50-60% to TOA's sale revenue in Asean, or about one billion baht. TOA ranks third in the market after the local brand 4 Oranges and Dulux. 

Feungladda Chirawiboon, TOA’s vice-president for overseas development, said TOA has been well received in foreign markets due to its quality although local brands still dominate the market.

She said despite similar weather and geographical locations, consumer behaviours vary across the region. For instance, the Vietnamese and Indonesians only painted the interior and fronts of their houses due to limited budgets. 

“Thai people like simple colours such as white, cream and grey but the Vietnamese like to paint their houses in green. The Malaysians also like green, as well as pink," Mrs Feungladda said.  

“The repainting frequencies are also different. Malaysians repaint houses in new colours every year during Hari Raya (the new year’s day for Muslims), while Thais do so every three to five years.”

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