IHL bets on demand for protein hydrolyte

IHL bets on demand for protein hydrolyte

SET-listed Interhides Plc (IHL) expects its protein hydrolyte to contribute 200-300 million baht to the company's net profit next year, says its top executive.

Demand for protein hydrolyte is strong both at home and abroad, and the company is the only one in Southeast Asia with the know-how and technology to manufacture it, IHL's managing director Ongart Thumrongsakunvong told the Bangkok Post in an executive interview.

The company has been developing the protein hydrolyte, a product derived from leather industry waste, for two years. It can be sold to the animal food, chemical and cosmetics industries this year, he said, adding that it is expected to be an ingredient in medicine and food supplements next year.

He said the company planned to spend 400 million baht to set up a new factory and install machines to manufacture the protein hydrolyte.

Demand for the product is expected to rise in the future if it can pass quality standard tests from the Thailand Food and Drug Admiration ensuring it is safe for human consumption.

IHL last month set up Inter Green Co, a subsidiary to produce protein hydrolyte, with registered capital of 50 million baht.

The company currently has paid-up capital of 419 million baht with par value of one baht. It will increase its capital by 174 million baht to 593 million by issuing 70 million stock dividends to shareholders at a ratio of one new share for every six shares held and 104 million new shares to reserve for warrant conversion.

The warrants will be offered for free to shareholders at a ratio of one unit of warrant to four shares. The three-year warrants will have an exercise price of 3.5 baht each.

"We plan to invest 400 million baht in the new project and the warrant issuance will attract investors. We expect to list Inter Green on the MAI (Market for Alternative Investment) in the next three years if it meets its operational and income targets," said Mr Ongart.

IHL is primarily a manufacturer and distributor of leather coverings for car seats.

IHL closed yesterday on the Stock Exchange of Thailand at 9.70 baht, down 15 satang, in trade worth 8.07 million baht.

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