Premier Quality Starch Plc (PQS), a tapioca starch manufacturer in the Northeast, expects bright prospects in the industry as global demand grows.
The company sees an opportunity to benefit from improved sales as Thailand is well known as a key tapioca starch manufacturing base that uses advanced production technology.
"Thai tapioca starch is recognised as a high-quality product," said Somyot Chanchungthaworn, vice-chairman and executive chairman of PQS.
He said the global tapioca starch industry is expected to grow by roughly 5% annually, in line with the expansion of the food processing market.
This should benefit the company because tapioca processing and the food industry are growing in the same direction, said Mr Somyot.
He said PQS's strong customer base in various industries and close relationship with its customers helped the company identify their true needs, which in turn benefits its business.
"We believe the tapioca starch industry still has the potential to grow. The current market condition is not a red ocean, meaning it is not fiercely competitive," said Mr Somyot.
The company was established in 2005 and two years later its flagship factory was built in Mukdahan province. In 2008, the company started commercialising starch products.
PQS differentiates its products from rivals by focusing on producing premium starch, as its factory is located near areas where high-quality tapioca is grown.
Its main customers are manufacturers in food and non-food industries. They buy both native starch and modified starch.
At present, 30% of the products are sold domestically and the remaining 70% are exported, said Rathwiroon Chanchungthaworn, chief executive and managing director of PQS.
The company also supports the state promotion of renewable energy by producing electricity from its biogas-fired power generation facility. The biogas is derived from the fermentation of wastewater from the starch manufacturing process. The power is used by the factory and sold to the Provincial Electricity Authority.