TOA Paint (Thailand) Plc, a SET-listed manufacturer and distributor of decorative and non-decorative paint and coating products, aims for 10% growth in 2019 revenue to 18 billion baht, largely driven by its overseas operations.
Chief executive Jatuphat Tangkaravakoon said a new production plant in Kawasan Industri Millenium in Indonesia was completed and is ready to begin commercial operation in the second quarter.
Another new plant in Thilawa Special Economic Zone in Myanmar, relocated from Yangon, will start operation in the third quarter, while a third plant in a special economic zone in Cambodia, its second in the country, is scheduled to start operation in the fourth quarter.
"After all plants start production, we expect a total capacity will rise by 16% to 102 million gallons per year, up from 88 million," he said.
By the end of 2019, TOA will have a total of 10 production plants in seven countries comprising Thailand, Myanmar, Cambodia, Indonesia, Laos, Vietnam and Malaysia.
In 2016, TOA had a market share of 13% in Southeast Asia's decorative and non-decorative paint and coating products segment, said Frost & Sullivan, a business consultancy.
TOA restructured its management by appointing Prakorn Makjumroen, formerly chief executive of construction materials producer Shera Plc, as the company's new president on Jan 2, 2019.
The company is the market leader in Thailand with a share of 48.7%. The overall market value of decorative and non-decorative paint in Thailand was 19 billion baht last year.
Mr Jatuphat said the paint market in Thailand has high competition with many players. The company will focus on the premium segment and will launch a few new products this year, using campaigns to boost sales, he said.
Last year TOA recorded 16.4 billion baht in sales, a 4% gain from 2017. The majority was in decorative paint, some 11.2 billion baht, accounting for 68%. It recorded 4.58 billion baht in sales from coating products and others, representing 28%.
Of the 2018 sales, 13% was from overseas, which is expected to rise to 14% in 2019 and 20-25% in 2023.
TOA shares closed yesterday on the SET at 33.25 baht, down by 25 satang, in trade worth 53.3 million baht.