The consistently growing demand for “gloves” in the global markets indicates there are opportunities for Sri Trang Gloves (Thailand) or STGT, Thailand’s largest and one of the world’s top 5 gloves manufacturer to reach a position as one of the world’s top 3 gloves manufacturer within 5 years. Our markets cover 120 countries supported by cutting-edge manufacturing technology along with continuing research and development in innovation to deliver “Touch of Life” on a global scale. We are committed to fulfilling customers’ requirements with the highest quality and standard.
STGT’s resourceful strengths
Vitanath Sincharoenkul, Director, Sri Trang Gloves (Thailand) Co., Ltd. or STGT reveals the company background back in 1989 when the establishment was a joint venture between Thailand’s latex manufacturer and an Austrian surgical glove company, producing only medical gloves for overseas markets.
STGT has continued to grow and has launched new product lines for non-medical markets in various industries including food services, manufacturing and the kitchens of hotel establishments where latex gloves are required in cooking and handling foods, and beauty industry such as hairdressing, nail polishing, cosmetics etc.
“STGT’s examination glove products are composed of 4 categories; Latex Powdered Gloves, Latex Powder-Free Examination Gloves, Nitrile Powder-Free Examination Gloves, and Sterile Powdered and Powder-Free Gloves” explained Vitanath.
In 2017, the company took another significant turn by separating from a joint venture partner to establish STGT, 100% Thai-owned and becoming the world’s top latex gloves manufacturer.
STGT’s dynamic growth is reinforced by Sri Trang Agro-Industry Plc. or STA, the world’s largest fully integrated green rubber company with approximately 10% market share of global natural rubber consumption. STA is recognized as “the first and only” natural rubber manufacturer in Thailand listed on the Stock Exchange of Thailand and on the Singapore Exchange with the total revenue of Baht 37,444 million in the first half this year.
“Operating as a STA subsidiary company, we benefit from the fully vertical integration. The production capacity involves over 50,000 rai of rubber plantation and 36 rubber processing facilities which produce concentrated latex (LTX), ribbed smoked sheet (RSS), and technically specifies rubber (TSR). These factors help to strengthen STGT production as it has access to the selection of raw materials and the high quality raw materials result in the distinctive gloves specifications unlike others.” Said Vitanath.
STGT unique innovation responses to the “Touch of Life”
MARGMA Industry brief 2018 on the Rubber Glove Industry states that the growth of latex glove in the global market is at approximately 8-10% annually. It is forecasted that increasing demand in 2017 will reach 233 billion pieces and by 2018, the figures will total 268 billion pieces, representing 15% growth.
As for STGT, the firm Director reveals that the current manufacturing capacity is 17,200 million pieces per year which can be divided into 132 product lines; 90 lines or 11 billion pieces a year produced in Songkhla and 42 lines or 6 billion pieces a year produced in Surat Thani. The overall products comprise 60% latex examination gloves and 40% nitrile examination gloves.
Behind STGT’s billions success is technology and innovation
Regarding STGT technology and innovation, Vitanath explained that STGT’s experienced team is the expert in raw material selection, therefore the factory can produce high quality low-protein gloves, which helps preventing skin allergy. In addition, STGT focuses on highly investing in Research & Development to improve and develop latex gloves tailored-made to each market requirement. For example, preference for Indian market concerns about the reasonable price with good quality, the R&D team therefore needs to develop glove products in accordance with those requirements as well.
“Another essential production criteria is to meet markets’ standard since each region, Europe, USA or Japan, has their own standard measures, for example, in Thailand, we have TISI and FDA. Our glove products therefore they are produced to meet these qualifications or above” STGT Director said.
Economies of Scale are another factor enabling STGT proficient production management in cost and quality. Additional, STGT’s owned engineering company is capable of developing new model of glove production machines to produce various product specifications as well as perform maintenance and mechanics upgrade at any time.
All these strengths are considered as “superior advantages,” raising STGT standard on top of shelf as the world’s leading gloves manufacturer.
All market strategies unfold
Hosted under STA group, the world’s largest natural rubber manufacturer and distributer, STGT has the highest domestic market share at 70%. Other influential factors include its existence in the market over 30 years with the product quality enhancement programs as well as continually increasing production capacity.
The total share is comprised of 60% in medical sector and the other 40% in non-medical sector. Both types of latex gloves perform continuous growth annually; the medical sector has grown 15% annually, while the non-medical sector is growing approximately 10% annually.
“STGT brand is very strong in Thailand. We have already achieved our position as number 1 in the national market so we aim to expand our territory into the international stage.” said Vitanath.
STGT executive management board shares the international market outlook that the brand commenced the export business since 1989, the same year of company establishment. As the company was a joint venture with an Austrian partner, Europe was the priority market location, followed by Thailand, and the rest of the world. Currently, the company exports the products to 120 countries around the world, focusing 5 main targets including USA, Europe, Japan, Thai, and China.
Gloves exported to each country require unique specifications. Market in the US prefers powder-free gloves, STGT then provides the American market with the nitrile latex glove, followed by a slight numbers of latex gloves. European market also prefers nitrile gloves with the longer proportion to those exported to America whilst Thai customers prefer the natural latex gloves with the similar length and thickness to European standard. On the other hand, Japan market focuses on natural latex gloves and defects, the gloves must not have any trace of leakage.
“OEM latex gloves are STGT main exported products with small portion of Sri Trang Gloves brand. Our house-brand products are mainly sold in Thailand, CLMV, and India. While American market prefers OEM for their own labels.” STGT Director reveals.
Although India and China are the large markets with the challenges of steep competition from foreign players as well as the domestic brands which have an advantage as they are familiar to the local, STGT dares to encounter the fiercely competitive markets.
Vitanath continues that product preference in India is reasonable quality and price hence the latex gloves are designed to meet the required specification for this particular market. In China, STGT establishes the office there and hires local distributors to build up good rapport with customers as well as marketing the Sri Trang Gloves brand and focusing on OEM production.
“We have no future plan to set up the factory neither in India nor China as our raw materials are stored in Thailand. We can manufacture any type or specification customised to customers’ requirements as STGT capacity is exceptional” Vitanath confirms the company’s incompatible competence.
The majority of STGT market is overseas base, which generates 90% of revenue and another 10% from Thailand. As there is an increasing potential growth for the brand, STGT confirms the market leadership position by going ahead with the plan, expanding international marketing team which performs 75% growth of sales members from the past 3 years. Sales representatives are assigned to survey the market and build up relationships with local customers for months.
With the current sales offices situated in the strategic locations including Thailand, Vietnam, China, Austria, and USA, STGT has no further plan to establish any more offices in other countries. However, India is the company’s next target for market penetration considered by numbers of populations and hospitals, which are in line with the rising demand in medical latex gloves usage. Latin America is another large market with high potential.
Direct to “the world’s largest top 3 gloves manufacturers”
STGT Director reveals the 2019 growth trend in Thai’s market to be as high as 10-15% by focusing on the non-medical market expanding strategy as the rising hygienic concerns which supports the gloves consumption to grow each year.
Meanwhile, there is room for expanding the market in CLMV, the aggressive business plan is prepared to penetrate in both medical and non-medical sectors alongside with the customers visit and trade fairs.
“We have no concerns over the competitors as competition has always been part of the business. We are aware of our competitors, so are they. Each company provides different product specifications. The important thing is who could provide better satisfaction for the customers. They purchase our products and they might as well purchase the competitors or vice versa.” confirmed Vitanath.
Due to the fast-growing market of examination gloves, STGT increases the production capacity from 14 billion pieces annually to 17 billion pieces in 2018 and continues to reach 21 billion pieces by April 2019 and 30 billion pieces by 2021 respectively. “Touch of Life” STGT product concept is promised to be delivered on a global scale.
Around STA’s 50% net profit is a fruitful performance driven by gloves revenue. The result of market expansion is planned to generate 60% profit for STA in the coming future as well.
Equipped with all exquisite components in all dimensions, STGT aims to reign in the global market position as the world’s top 3 largest gloves manufacturer within 5 years, stepping up from the current position at Top 5. The sales expansion will cover 180 countries worldwide. To support this expansion, we also expand the capacity of our latex factories as latex is the main raw materials for latex gloves.
STGT legendary is our strengths to continue the development for the prospective moves to the better and greater success.