TOA Paint (Thailand), Thailand's largest paint manufacturer, intends to be the largest manufacturer of protective coatings in Southeast Asia, with annual sales in all categories forecast at 20 billion baht over the next three years.
Turnover is projected to grow by 16% annually from now to hit 20 billion baht by 2015, said Jatuphat Tangkaravakoon, deputy chairman of the TOA Group, parent company of TOA Paint.
From 2007-11, sales grew by 12% a year on average. This year, the group is aiming at 18.6 billion baht in sales after setting a record with 15.5 billion baht last year.
''The record sales are attributed to last year's high demand for home repairs after the big floods [in 2011]. We received so many orders in early 2012 that it took us six months to clear,'' Mr Jatuphat said.
''As well, the real estate market has expanded substantially in recent years, with rapid growth in the premium segment. This has helped to strengthen our revenue base.''
Pongcherd Jameekornkul, the newly appointed group president, said the group also targets increasing its market share in Asean by one percentage point annually from 14% now.
Last year, its market share in the region was 12%.
Thailand's non-decorative paint market was worth 19 billion baht last year, up by 12% from 2011, with the premium segment accounting for 26% of the overall market.
Ultra-premium, medium and eco-products had a share of 23%, 31% and 20%, respectively.
TOA commanded a 50% share in the premium market, with 23% in the ultra-premium, 62% in the medium and 26% in the eco markets.
TOA had a 47% share in the decorative market last year, with revenue of 9 billion baht, up by 20%.
Sales of non-decorative paint reached 3 billion baht, while international sales reached 3.5 billion baht.
''The premium and ultra-premium markets are interesting for us. While the bottom segment will drop, we expect to see growth in the premium market,'' Mr Pongcherd said.
''The higher daily minimum wage will prompt consumers increasingly to opt for more premium products in order to get better quality.''
TOA plans to invest in new factories in other Asean countries.
About the author
- Writer: Nanchanok Wongsamuth
Position: News Reporter