Srithai Network Co, a direct sales arm of melamine producer Srithai Superware Plc, will distribute its organic farm products in other Asean markets, aiming to double international sales in three years.
Vice-president Settapong Haemintakun said the company signed an agreement yesterday with G.I.B. Trading Co to develop organic farm products under S-Matrix 1 Plus brand for its direct sales business.
The initial product is S-Matrix 1 Plus organic fertiliser to be sold in Thailand and Malaysia in July before expanding operations in Myanmar, Laos and Cambodia later this year.
Srithai Network set up its direct sales business in Malaysia last year through the purchase of a Malaysian company with a multi-level marketing licence, now renamed S-Network Bhd. S-Network Bhd has registered capital of 2 million baht, which it aims to raise to 50 million baht in 18-24 months.
"There is huge market potential for S-Matrix 1 Plus in Malaysia because there is plenty of cultivation area for agricultural products over there and no direct sales companies selling organic fertiliser in Malaysia," Mr Settapong said.
It also sees more room to grow S-Matrix 1 Plus products in Thailand because the local fertiliser business is forecast to be worth 300 billion baht per year.
Srithai's sales of agricultural products in the first quarter were 20-25% lower year-on-year because of the drought and lower crop prices. It believes its agriculture product sales will resume growth this year after S-Matrix 1 Plus hits the market in July, lifting total by 20% to 240 million baht.
One strategic adjustment is approaching big tea farmers in Malaysia and Chiang Rai province.
Srithai Network has expanded to Myanmar, Laos and Malaysia, which make up about 15% of total sales. After fully expanding its organic farm products into Asean, the company expects sales from that region to comprise 30% of the total.
Its sales are forecast at 600-700 million baht this year. The company plans to expand its direct sales business into Singapore in the first quarter next year.
"We plan to produce some farm products in Singapore because of good consumer recognition there," he said.