Haco taps demand for luxury products

Haco taps demand for luxury products

Haco Group, the authorised importer and distributor of international sanitary furnishings and tiles, has teamed up with Spanish bathroom products and ceramic tile maker Roca Group to tap into growing demand for high-end bathroom products in Thailand.

A new line of toilet/sink combos Roca plans to unveil in Thailand as it targets high-end customers.

"We are looking at the long-term prospects of the Thai market, although demand and the economy right now are not quite favourable," said Dhitipong Dowpiset, director of Roca Bathroom Products Thailand.

Haco has a 40% stake in the joint venture, while Barcelona-based Roca controls 60%. Roca Thailand has registered capital of 100 million baht.

Haco was established in 1973 as an importer of specialised chemical products. As a result of tremendous development of the Thai economy over the past two decades, Haco has enjoyed steady growth and expansion by diversifying to specialise in the import and distribution of sanitary fittings, furnishings and imported tiles.

The group has maintained its reputation as the market leader for a wide range of well-established international brands including Grohe and Keuco from Germany and Inda from Italy.

It formed a joint venture with Grohe, a provider of premium bath taps and showers, to establish Grohe Siam and set up factories in Rayong.

Haco projects its sales to stay flat at 500 million baht this year, largely because of cooling property projects in light of the economic slowdown and months-long political protests. Last year's sales rose 7-8% from 2012.

Grohe Siam, in which Haco has a 26% stake, operates two plants producing a combined 100,000 items a week.

Mr Dhitipong said Roca Thailand aims to have annual sales worth 300 million baht over the next three years.

Bathroom products excluding tiles in the Thai market are forecast to grow 5% this year from about 12 billion baht last year.

"Roca products are in the middle-to-high segment where consumers still have strong purchasing power," Mr Dhitipong said. "Roca will focus on upcountry projects as we foresee property projects in Greater Bangkok will become sluggish this year."

Raimundo Glacier Figueras, Roca Group's senior managing director for Asia, said although the parent company has yet to commit to setting up a factory in Thailand, that will be viable if the Thai operation achieves accumulated sales of more than 900 million baht by 2016.

Roca Group now operates 78 plants worldwide with annual production capacity of 38 million pieces.

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