Donki Mall expansion for TOAVH

Donki Mall expansion for TOAVH

TOAVH is a luxury car dealer for Mercedes-Benz.
TOAVH is a luxury car dealer for Mercedes-Benz.

TOA Venture Holding (TOAVH) expects revenue will grow by 10% this year to 12.8 billion baht as the company continues to look for new business opportunities, including branching out into the Japanese-style Donki Mall in Thailand, under a 540-million-baht investment this year.

Donki Mall, part of the company's property development business, is one of the company's main sources of revenue, together with industrial paint and auto parts, chemical business and an automotive dealership business.

Last year, TOAVH, a business unit of TOA Painting Thailand, recorded revenue of 11.6 billion baht, a 14% increase from 2019.

The company's car dealership accounted for 55% of revenue in 2020, followed by 35% from industrial paint and auto parts, 8% from its chemical business and 2% from property development.

Despite the impact from the pandemic, the company will continue to expand its investment, said Nattavuth Tangkaravakoon, TOAVH's president.

"TOAVH is conservative in investment, but the company is also confident in its strategy for business expansion," he said, adding risk can be manageable even during the pandemic.

This year, the company plans to add two more branches of Donki in Bangkok using a 300-million-baht budget.

TOAVH runs two Donki malls, also known as Don Quijote, at Thong Lor and Ratchaprasong in Bangkok.

Within five years, according to Mr Nattavuth, the number will increase to 20 branches in Thailand.

The company also plans to import machinery for its sandpaper business under a budget of 190 million baht.

In the automotive segment, TOAVH has set a target of selling 700 Mercedes-Benz cars this year, up from 600 units in 2020. Other car brands sold under its dealership are also expected to increase, with MG increasing to 4,500 from 3,900 units and Suzuki rising to 1,200 from 1,065 units.

"The company expects revenue from the automotive business in 2021 will grow by 12% year-on-year to 7.3 from 6.5 billion baht in 2020," said Mr Nattavuth.

In Myanmar, TOAVH has decided to delay its investment in an industrial paint manufacturing plant due to political uncertainty following the military coup.

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