Krung Khad Thai Co Ltd, a cleaning-products manufacturer, is counting on a recently established subsidiary - Cleanovation Co Ltd - to expand its market base to industrial and commercial corporate customers after suffering a 10-per-cent profit drop.

Cleanovation managing director Sitthichai Sae-Tang said yesterday that Krung Khad Thai had been operating for years as a manufacturer of cleaning equipment and a provider of cleaning services targeting subcontracting firms. Its sales last year were approximately Bt100 million.

Yet competition was very intense last year, caused by the emergence of many small service providers which offered cheaper fees. Together with the oil price increase, Krung Khad Thai's profits fell by 10 per cent. As a result, it decided to give a marketing boost to Cleanovation, which it founded in 2004.

Cleanovation distributes Krung Khad Thai products. At the same time, it expands the parent company's target groups to industrial and commercial corporate customers.

Cleanovation began its business with industrial customers, mainly food processing, electronics and steel manufacturers. Its sales last year were Bt20 million, said Sitthichai. This year, it plans to penetrate commercial corporate customers - hotels, serviced apartments, schools and office buildings - and high-end private houses worth over Bt10 million.

To build awareness of its products, the company has for the first time allocated Bt5 million to marketing and advertising for this year.

The company will directly approach commercial corporate customers. At the same time, it will advise housing companies to use its cleaning products as part of their promotional campaigns. Products will also be sold through retailers including Home Work, Home Pro and department stores.

The company already has 10 trade partners in other provinces.

Of its cleaning products, 70 per cent are manufactured by Krung Khad Thai and the rest imported from Germany, Italy and the UK.

Cleanovation aims to see a 40-per-cent increase in sales. Its profit during the first quarter of this year has already grown 15 per cent over the same period last year.

The market for cleaning services and equipment was worth Bt800 million last year, of which 60 per cent came from cleaning subcontractors and the rest from industrial and commercial corporate customers.

Cleanovation has an 8-per-cent market share.

This year, it expects its market share to grow to 15 per cent.

Nitida Asawanipont

The Nation