Pasaya sews up growth blueprint
Pasaya Group, a leading fabric product maker, plans to list on the Stock Exchange of Thailand by 2018 to raise 1.5 to 2 billion baht to fund local and global expansion.
The group will use funds raised to build the Pasaya bedding product brand in international markets, expand its distribution network, open a textile college and form a joint venture with China's fifth-largest silk yarn manufacturer to open a silk yarn factory in Thailand.
The expansion programme could double Pasaya's sales to 2 billion baht over the next five years and lift its overseas sales contribution to 80% of the total, up from 20% last year, said Ratiya Chantian, managing director of Textile Gallery Co, the distributor of Pasaya fabric products.
Pasaya offers fabric curtains, home decorative and bedding products.
The company has exported its fabric products to every Asean market for several years, excluding Brunei and the Philippines. The group appointed authorised distributors in those countries, and some opened Pasaya shops in Vietnam and Cambodia.
The group also has its own showrooms in Malaysia, Japan and France.
"Having our own showroom in Paris raises our image, making it easier for Pasaya to expand to other markets in the future," she said.
Schle Wood, the group's design director, said it planned to expand Pasaya's business to China, Japan, Taiwan, Australia and Asean within the next five years.
In Japan, it already set up a subsidiary to sell products at retail chains this year. In China, a local distributor has been appointed and Pasaya home decoration products will be available at Chinese retail chains this year.
The group is negotiating for a joint venture silk yarn factory in Thailand. Chinese executives will travel to Thailand to survey market opportunities here.
"We could close the deal soon as labour costs in China are rising and Chinese silk yarn prices are three to four times higher than silk yarn in Thailand," said Mrs Ratiya.
A joint venture factory would move Pasaya into both the silk yarn business and beauty and pharmaceutical areas by using mulberry, a major raw material in producing silk yarn.