SCG Packaging Plc (SCGP) expects its total revenue to grow to 180 billion baht within 2027, thanks to merger and partnership (M&P) deals as well as business expansion projects.
This year, the company is confident its revenue will increase to 140 billion baht, said Wichan Jitpukdee, chief executive of SCGP, expecting a 10% growth in revenue per year.
In 2021, SCGP generated 124.2 billion baht in revenue, an increase of 34% from 2020. The net profit was recorded at 8.29 billion baht, an increase of 28% from 2020.
SCGP has allocated 100 billion baht as investment budget, with around 20 billion baht to be spent per year.
"We plan to spend the budget on M&P deals, business expansion and maintenance projects," said Mr Wichan.
The company will focus on businesses with innovations in foreign countries for its M&P plan.
Mr Wichan said M&P will be a key factor to drive revenue toward the target. Growing demand for packaging products in Thai and overseas markets will also contribute to the increase despite the ongoing Covid-19 outbreak.
SCGP are currently in talks with foreign companies on two deals. The negotiations are expected to be concluded as soon as possible.
"The company is seeking new investments in India and the US because both countries are large markets, with high potential for the packaging business," said Danaidej Ketsuwan, chief financial officer at SCGP.
He expects revenue from overseas sales to make up more than 50% of total earnings this year, with the remainder coming from the domestic market.
Since 2020, when the company was listed on the Stock Exchange of Thailand, SCGP has spent a total of 40 billion baht to invest and develop 12 projects under M&P deals and production capacity expansion plans.
Nine projects already started commercial operations while the development of the remaining three projects are underway, which includes the capacity expansion of packaging paper production of United Pulp and Paper Co in the Philippines.