Yesterday Thaksa Busayapoka, chief executive director of Modernform, whose companies make office furniture and other products for home and industry, announced that the group had formed a product-development agreement with Satin Textiles, a manufacturer of high-end fabrics under the Pasaya brand.

Schle Wood-Thanan, Satin Textiles' managing director, said the partnership would include a "shop-in-shop" deal - with each company having space in the other's showrooms. The agreement will also see the two specialists pool their design resources. Schle and Thaksa believe the agreement will give them a competitive edge in the international market.

Modernform will tap into Satin Textiles' extensive international network - primarily in Austria, Australia, Germany and Malaysia - where Satin has formed joint ventures or has shares in local companies.

Customers can already find Modernform furniture made with Pasaya fabrics.

Schle said that cooperation between the two companies would extend beyond office furniture. Modern textile technology is now capable of making anti-bacterial and anti-fungus fabrics. These could be used in products from Modernform Health and Care.

Thaksa said that in an ageing society, there was huge room for growth for furniture and household products catering to old folks, who are expected to make up 15 per cent of Thailand's population by 2010.

Established in 2005, Modernform Health and Care reported about Bt30 million in revenues last year.

Thaksa said the healthcare company had optimistically forecast a turnover of about Bt100 million this year, largely through sales to large-scale projects, such as hospices, long-stay apartments and hospitals.

Schle said he expected the agreement with Modernform to contribute about 10 per cent to an expected rise in Satin Textile's revenues from Bt300 million to Bt500 million this year. Last year, exports accounted for about half of the sales.

Thaksa said the majority of Modernform's exports were now office furniture. The company wants to add higher-end products to its export offerings.

While the group's earnings and profits were up by 5-10 per cent last year, Thaksa said dividends would remain the same as for the previous year, with profits being reinvested in the company.

Thaksa and Schle said they would not rule out the possibility of a joint venture.

Ki Nan Tsui

The Nation