Dimet paints to piggyback on SCG chain

Dimet (Siam) Plc, the MAI-listed paint manufacturer, wants to access the modern trade chain of the Siam Cement Group (SCG) to enhance distribution and build up a mass market following.

Assistant marketing manager Tansith Rujikarnchana said Dimet is in talks with Thailand's top industrial conglomerate to sell its products in SCG's Home Solution Centers, a new business model catering to modern consumers who research and buy their own construction materials.

The first Home Solution Center opened in 2009 inside Home Mart Bang Na.

SCG operates 12 Home Solution Centers and plans two more by year-end and another six next year. A deal with SCG is expected to be sealed this year, with Dimet selling its paints in five Home Solution Centers upcountry by mid-2013.

"We'll spend 10 million baht on radio, print ads and billboards this year after we've prepared a package to attract customers and adjust business operations," he said.

This will be the first time in Dimet's 30-year history that it will target the mass market. The move is prompted by changes in consumer behaviours.

More homeowners are researching products and making their own decisions in home renovations or construction.

The talks come after SCG in August paid 10 billion baht for one-third of Siam Global House Plc (GLOBAL), the SET-listed retailer of building materials and home improvement products.

Dimet itself operates 30 distribution channels _ five in HomePro branches and 25 dealers nationwide. By the end of next year, it expects to have 40 channels.

Mr Tansith said the company targets 430 million baht in revenue in fiscal 2013 ending next June 30, up by 10.3% from fiscal 2012. It also expects to turn a profit this fiscal year after last year's net loss of 8.53 million baht.

Some 70% of Dimet's sales come from property projects and the rest from end-users. Thailand's 20-billion-baht paint market sees annual growth of 5-10%.

Shares of DIMET closed yesterday on the MAI at 2.24 baht, up 24 satang, in trade worth 151 million baht.

About the author

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Writer: Kanana Katharangsiporn
Position: Business Reporter