He said the company's export revenue in dollar terms was on par with last year's performance, but was reduced in baht terms after the baht rose from Bt40 per US$1 to Bt36-Bt35. The group wants the baht to be maintained at Bt38.

"We support the government's policy to prevent the baht's appreciation higher than Bt35 per US dollar," he said.

The group has changed its business policy for the export market by focusing on premium products that will offer a higher price than standard products and not suffer a negative impact from the strong baht," he said.

Pichit Maipoom, president of Cementhai Building Products - producer and distributor of Cotto floor tiles floor and sanitary-ware - said the company will increase its exports from 40 per cent this year to 50 per cent next year. Twenty per cent of export value will come from premium products that will balance out the baht's appreciation.

"Customers who buy premium products are not concerned about price and as a result we will focus on these products, in order to boost our sales and maintain our profit margin next year," Pichit said.

He said the company expects sales of Bt27 billion next year, up 17 per cent from its total sales of Bt23 billion at this yearend. Half of total sales next year will come from the export market.

The company plans to increase its sales of premium products from 40 per cent this year to 50 per cent next year.

Pichit added the company's sale revenue this year grew by only three per cent from last year, lower than its target of 10 per cent. This is because its export value in baht terms was lower than estimated, while demand for construction raw materials in the domestic market also dropped from last year.

However, the company believes its sales will meet the target next year after the company launches its new strategy by focusing on premium products and improving its service.

Pichit said the company plans to invest up to Bt400 million next year to open new showrooms under the concepts "Cotto Tile Studio", "Roofing Centre" and "Cotto Tiles Library" next year.

At present, it has 47 branches of "Cotto Tile Studio", which will increase to 60 branches next year.

"Roofing Centre" will also increase from two branches to eight. "Cotto Tiles Library" now has three branches. The company will renovate its branch on Asoke Road next year after opening its third branch in Chiang Mai last week.

By the middle of next year, the company also plans to open a construction school that will combine new technology and improve workers' skills.

"The school will develop workers' skills to support our new business concept to focus on premium products because skilled workers will produce quality results for our customers that will also boost our product image," he said.

Somluck Srimalee

The Nation

Chiang Mai