EXCLUSIVE INTERVIEW: MELAMINE GIANT'S PASSAGE TO INDIA

       Srithai Superware, the world's largest manufacturer of melamine tableware, plans to invest Bt200 million in its first melamine factory in New Delhi and will be pondering investments in other Indian cities such as Mumbai and Chennai.

       "We see India as a potential market enjoying strong growth. Setting up the melamine factory in New Delhi will help us expand our distribution more easily," Sanan Angubolkul, the company's chairman, said.
       "We expect to open at least four factories for melamine and other plastic products in India over the next 10 years," he added.
       He told The Nation that the firm had recently opened its first trading office in New Delhi, which would be responsible for selling the products via direct-selling channels. The first lot of melamine products has already been shipped to New Delhi and will officially enter the market next month through a direct-selling network.
       Srithai has been exporting melamine tableware to India for nearly three decades now through local importers and wholesalers, but this is the first time that it is directly penetrating the market.
       The factory in New Delhi scheduled to open next year will produce 100 tonnes of melamine products per annum. Srithai owns 70 per cent of the business and local agents hold the rest.
       Srithai has been operating a plastic factory in Vietnam's Ho Chi Minh City for nearly 13 years now, and the plant started producing melamine last year.
       "We have big expansion plans for our manufacturing facilities for melamine and plastic products in both India and Vietnam, where we hold majority shares in the factories. In Ho Chi Minh, we own about 95 per cent of the stake," Sanan said.
       He added that Srithai currently exported melamine products to more than 100 markets around the world and aims to become a world-class manufacturer for plastic products and top five plastic producers in Asia over the next five years. It also plans to make the most of the Asean free trade agreement, to be signed next year, under which import duty would be reduced to zero next year from the current 10 per cent.
       Supporting this move is the new strategic initiative called "Change Management", which has been implemented for a year and a half now, and applied in all major development areas such as technology, productivity and innovation, both at the end product and manufacturing process. It also includes developing its employees into "world citizens".
       Srithai's production facility is now 40 per cent automated and will be fully automated in the next five years.
       At present, Srithai has four plants in Thailand manufacturing plastic and melamine products on Bangkok's Suksawad Road, Bangpoo Industrial Estate in Samut Prakan, Bangpakong Industrial Estate (Amata City) in Chon Buri and the Suranaree Industrial Estate in Nakhon Ratchasima.
       Last year, it invested Bt800 million in upgrading machines to reduce energy consumption as well as installing a robotic system and automatic moulding. About Bt400 million has been set aside for upgrading local plants per annum. Since its earnings before interest, tax, depreciation and amortisation (EBITDA) are about Bt500 million a year, part of it would be used to finance the upgrade, Sanan said.
       Srithai expects to achieve Bt5.1 billion in total sales this year, including export, which is a 35 per cent increase from Bt4.9 billion last year.
       "We expect to increase our gross margin from last year's 19 per cent year to no less than 21 per cent this year. We also expect our total sales to reach Bt10 billion within the next five years," Sanan added.