JSP Pharmaceutical Manufacturing (Thailand) plans to increase production of cannabidiol (CBD) oil, extracted from cannabis and hemp, to 30,000 kilogrammes by the second half, up from 300kg, to serve demand for CBD mixtures in products ranging from food to cosmetics.
Capacity expansion is needed as new purchase orders for CBD oil from around 200 companies have rolled in, according to JSP.
CBD, which is known for its potential to treat many ailments, can serve medical purposes and be used for production of nutritional supplements, said Sittichai Daengprasert, chief executive of JSP.
"We're preparing to spend 160 million baht to buy oil extraction machinery, set to be installed in the next two months," he said.
The company also plans to spend an additional 50 million baht to market its CBD-based products in Thailand and overseas.
CBD oil made for JSP's own branded products account for 30% of total output, with 70% produced as an original equipment manufacturer to serve European brands.
JSP believes added production capacity, together with its sales through many channels, will result in a jump in revenue growth.
The company also plans to open a Thai traditional medicine clinic this year for people seeking alternative medical treatments, based on marijuana, hemp and herbs.
JSP operates two medicine manufacturing plants in Lamphun and Bangkok.
The company exports the drugs to countries in Asia and Europe.
JSP is conducting research on new herbal medicines and various nutritional supplement products.
As the CBD industry grows, JSP decided to raise funds through an initial public offering (IPO) on the Market for Alternative Investment to expand its business, both in the domestic and overseas markets.
Funds from the IPO sales will support the development of new healthcare products under JSP brands, said the firm.
The company aims to launch 4-5 new products each year.