Zemasch inks expansion deal | Bangkok Post: tech

IT HARDWARE & SOFTWARE

Zemasch Corporation has acquired 100% of the local operating unit of Taiwan-based Full Colour International for 50 million baht to cement its market share in computer printer ink.

Mr Peerasak says customers can build their own ink factories in their countries.

The merger will increase the market share of the group's Comax brand from 40% to 70%, while strengthening its distribution channels, said Peerasak Thongnarin, Zemasch's president.

The company is also preparing to list on the Market for Alternative Investment within the next year in a bid to raise up to 300 million baht to expand business overseas and develop IT accessories.

The merger enables Zemasch to expand into more than 10,000 stationery shops. It also provides a toehold into the cheap IT accessories market where the Taiwanese firm had a stranglehold.

Zemasch plans to partner with a Chinese printer manufacturer to make its own monochrome laser printer under the Pantum brand to serve its compatible ink products. Target customers are government and enterprise markets.

Prices will range from 2,000 to 3,000 baht, 20% cheaper than for international brands.

"Our products represent a cheaper alternative for the government to buy ink," he said.

Original ink imports total 10 billion baht per year, mostly from HP, Epson and Canon, while compatible or generic ink is worth only one billion baht.

Mr Peerasak said the company planned to introduce accessories for mobile devices, smartphones and tablets this year, apart from IT accessories.

Zemasch estimates there are 10 million computers in Thailand but up to 90 million mobile subscribers including 2 million smartphone users.

He said Zemasch planned to raise 250-300 million baht through a stock market listing in early 2012. The funds raised would be used to expand into ink products for the industrial sector such as textiles and advertising.

Mr Peerasak said Zemasch was introducing a "one country, one factory" licensing concept, allowing customers to build their own compatible ink factories in their home countries. It targets customers in Indonesia, India, Saudi Arabia, the Philippines and Iran.

The company aims to earn 700-800 million baht in revenue this year. Of the total, 550-600 million will be derived domestically with the rest from overseas.

Last year, it posted 450 million baht in revenue, mainly from compatible ink for desktops.

"We expect our overseas revenues to surge from 10% currently to 80% within the next two years," said Mr Peerasak.