ASEAN KEY DESTINATIONS
Tipco ready for regional push
Vietnam, Indonesia and the Philippines are being considered as possible sites. Products to be produced at the new plant will be fruit juices, cereal drinks and functional drinks.
CEO Viwat Limsakdakul said the move would allow Tipco to more than double its Asean business to 10 percent of total sales in 2015 from 4 percent now.
"The plan is also in line with our vision to become a leading food and beverage company in Southeast Asia, engaged in foods, fruits and vegetables, and beverages that fulfil the needs of health-conscious customers," he said.
Chanchai Kanjanaratmanee, the beverage marketing director, said Tipco had formed an Asean team to recruit sales agents in the region, launch new products, conduct market research and determine the feasibility of new factories in potential countries in Asean.
Tipco's Asean sales are expected to grow by 50 percent this year thanks to company expansion into new markets in Indonesia and the Philippines.
Mr. Viwat said its exports suffered from baht appreciation, with foreign sales dropping by 10 percent. The sales contribution from exports will fall to 45% this year from 50 percent last year. To counter this, the company will focus harder on its Asean operations next year.
Mr. Viwat said that apart from fruit juices, Tipco is installing a new 20-million-baht filling machine in its Aura mineral water bottling plant in Chiang Mai's Mae Rim district.
This represents Tipco's first major expenditure for the Aura plant since buying the brand in 2005 from Toraneepipat Co, which belongs to the Techapaiboon family and M.R. Thanadsri Sawasdiwat.
Built in 1995, the Aura plant bottles natural cold spring mineral water using sophisticated French ozonisation sterilising and hyperfilter technology.
Located on 80 rai, the plant can now produce 200,000 bottles of 0.5-litre size per day. After the new filling machine is operational about the middle of next year, capacity will increase by 50 percent to 300,000 bottles a day.
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