SJWD eyes B30bn revenue amid growth

published : 27 May 2023 at 06:55

newspaper section: Business

Mr Charvanin, left, and Mr Bunn are pictured at a press conference. Mr Bunn says 90% of revenue is expected to come from the domestic market and 10% from overseas.

SJWD Logistics Plc is projecting revenue of 30 billion baht this year, thanks to business expansion and merger and acquisition plans.

Jointly established by JWD InfoLogistics and Siam Cement Group (SCG), the company expects to benefit from the growing electric vehicle (EV) market in Thailand by providing transport services for EV manufacturers.

"The company plans to set up a new firm to carry EV components from China to EV factories in Thailand," said Charvanin Bunditkitsada, co-chief executive of SJWD.

He did not indicate what year this new business would take shape, but SJWD has already expanded its logistics services to the automotive industry.

In 2023, SJWD plans to allocate 3-3.5 billion baht for investment projects, said Bunn Kasemsup, another co-chief executive at the company.

"We expect 90% of revenue to come from the domestic market and 10% to come from overseas," he said.

With continual business expansion, SJWD projects its earnings to increase by 12% a year, with the proportion of overseas revenue rising to more than 30%.

Mr Bunn said the company is planning a takeover of SCG Inter Vietnam Co, which offers logistics services for SCG and other companies in Vietnam. SCG Inter Vietnam is a subsidiary of SCG International Co.

"We expect the deal to be completed on June 1 this year, allowing us to recognise revenue worth between 800 million baht and 1 billion a year from SCG Inter Vietnam," he said.

SJWD also expects to serve SCG-owned Long Son Petrochemicals in Vietnam, one of the largest petrochemical complexes in the region. To strengthen its business in Vietnam, SJWD will partner with Transimex Corporation, a local logistics service provider, said Mr Bunn.

In Cambodia, SJWD plans to embark on a new business by working with Cambodia Royal Railway to transport products between Cambodia and Thailand under the "Door-to-Door" service, which includes rail and road transport.

According to Mr Charvanin, SJWD is seeking new business partners to expand its automotive logistics and cold storage service into Vietnam, Indonesia and the Philippines to benefit from these countries' large populations.