Members of the Chirathivat family hold a joint press conference yesterday concerning the Central Group’s 2007 business plan, which focuses on retail, shopping-centre and hotel expansion.

The Central Group will spend Bt19 billion this year on its retail complexes, shopping centres and hotels, to support its sales target of 10.4-per-cent growth to more than Bt100 billion.

Executive chairman Suthichai Chirathivat yesterday said the group was committed to expansion despite many risk factors, both domestic and foreign.

"We are, however, quite confident of the strong foundation of the Thai economy, supported by good indicators, such as the low unemployment rate of only 1.8 per cent, decreasing public debt and calmer inflation," he said.

Declining oil prices since last August had boosted consumer purchasing power and confidence, he said.

The Bt19-billion investment budget will be allocated to many unfinished as well as new projects.

Department-store operator Central Retail will receive 28.4 per cent of the budget, shopping-complex developer Central Pattana 51 per cent and Central Hotels and Resorts 17.7 per cent.

Central Retail will spend Bt5.4 billion on renovations of its Zen Department Store at CentralWorld as well as its Central and Robinson department stores, plus expansion of retail units including Central Food Retail, HomeWorks, PowerBuy, SuperSport and B2S.

Central Pattana will use Bt9.7 billion to complete construction work at CentralWorld and build new shopping centres on Chaeng Wattana Road in Bangkok and in Pattaya, Khon Kaen and Chon Buri town.

Central Hotels and Resorts will spend Bt3.37 billion on new resort hotels at on Pattaya's Wong Amart Beach and in Phuket and the CentralWorld complex. Hotels in Hua Hin and on Koh Samui will be renovated with pool villas.

Of the total budget, about Bt350 million will be allocated to the Central Restaurant Group and Bt180 million to the Central Marketing Group, the group's restaurant and trading subsidiaries, respectively.

The Central Group's sales target for this year assumes a normal political and economic situation.

All major units expect higher revenues this year: Central Retail up 9.3 per cent to Bt78.4 billion, Central Pattana up 20.2 per cent to Bt9.3 billion, Central Marketing up 1.6 per cent to Bt4.7 billion, Central Hotels and Resorts up 31.1 per cent to Bt3.4 billion and Central Restaurant up 8.1 per cent to Bt4.4 billion.

The Central Group's total turnover of Bt90.9 billion last year represented an increase of 5.2 per cent over 2005 but missed the target of 11 per cent.

The group invested almost Bt13 billion last year, which was also short of the targeted Bt16 billion.

Prin Chirathivat, the group's executive director for finance, said this year's investment budget would be funded with about Bt10 billion from internal cash flow and Bt9 billion from short- and long-term debt, including about Bt4 billion in eight-to-nine-year debentures.

Kwanchai Rungfapaisarn

The Nation