Interhides Plc (IHL), a leading manufacturer and distributor of high-quality finished leather products in Thailand, plans to expand its business into medical supplies and supplementary foods under its subsidiary Intergreen.
Intergreen plans to produce protein from leather scrap through industrial production, supporting related businesses such as feeds, gelatin and other areas, said director and general manager Wasin Thumrongsakunvong.
The company is studying that plan with Chulalongkorn University, with R&D to be implemented for quality and value-added purposes, said Mr Wasin.
He anticipates the new business will generate healthy profits for the company, noting that it plans to invest 450 million baht over the next two years for R&D and new products.
If all goes according to plan, IHL aims to list Intergreen on the Thai bourse in the next 4-5 years.
IHL holds a 99.9% share in Intergreen to manage the environmental side of its business.
IHL's revenue is expected to expand by 20-30% from 2018 to 2020, supported by a four-time capacity increase from a new leather factory, which is scheduled to be finished in April.
The expansion of marketing and distribution channels for new products, said chairman and managing director Ongart Thumrongsakunvong.
Interhides leather tanning and sewing business for the local and overseas automobile business makes up 30% of its revenue stream.
Mr Wasin said Interhides is seeking other ways to ramp up growth at home and abroad.
China and Vietnam, in particular, are being eyed for expansion through business alliances, with R&D being applied to product development, including shoes, garments and bags.
"The next important step for Interhide to grow stably and sustainably is entering the tanning business outside of the automotive sector, which will increase revenue channels and new business opportunities," he said.
IHL shares closed yesterday on the Stock Exchange of Thailand at 11.50 baht, unchanged, in trade recorded at 3.81 million baht.