One of the plans involved construction of a plant for the manufacture of "stationary batteries", which would have allowed the company to enter the new market, said managing director Veerawat Korphaibool.

Stationary batteries are used as power reserves in buildings.

He said the company had already bought land in Samut Prakan's Tambon Bang Pu a couple of years ago and had intended to start construction by now.

However, plans have been put on hold until the direction of Thai politics and the economy becomes clearer.

"The current government has been trying to develop the country, but some political and economic decisions have shocked investors and the Thai economy as a whole, although those decisions are good," Veerawat said.

He sees a bright future for stationary batteries, because there are no local manufacturers yet, and the ones used here are either imported as finished products or assembled here.

The company is also worried about its business prospects because of the economic downturn. Veerawat said it might consider expanding its export markets by either entering new countries or increasing sales volume in its current export markets in Southeast Asia, the Middle East and Africa. East Asia has also become a significant market. The company plans to change the ratio of its domestic and foreign sales from 50:50 to 40:60.

The company also wants to focus on manufacturing "budget battery models". It recently launched 3K Ninja X100, using 3K High-Performance PE Envelope technology.

The company expects the new model to increase its share in the domestic market this year from 35 per cent to 38 per cent, said Veerawat.

The company has reduced its marketing budget this year to Bt40 million, which is Bt10 million less than planned.

Veerawat predicts the battery market this year - currently containing 4.5 million units - will grow only 2 to 3 per cent, due to the economic downturn and a 20-per-cent increase in production costs.

Nitida Asawanipont

The Nation