Following its launch of the first Thai-made maintenance-free battery here last month, Siam Battery says it expects its domestic sales to surge to Bt400 million this year, up 60 per cent from last year's Bt250 million.

"Our new product … is innovative. It represents an emerging trend in the battery market," said Addisorn Rotrakarn, executive director of Siam Battery's parent firm Siam Pan Group.

"The [maintenance-free] battery technology took over five years to research and it is unlikely that a competitor will be able to introduce such a product in the next couple of years. This gives us a strong lead in the market," Addisorn said.

Its maintenance-free battery was less expensive than imported ones, he noted, adding that the company would spend Bt20 million to market the product this year.

Last year Siam Battery had total sales of Bt1 billion, including domestic and export markets.

It forecasts sales to grow 15 to 20 per cent this year, to Bt1.2 billion. The company exports to European countries, Asia, Australia and South America. It plans to expand to the Middle East and Scandinavian countries this year.

In Thailand, Siam Battery sells its premium products under the Boliden brand while its lower-end products are sold under the Crocodile brand. Exports are under the Trane brand.

"Our exports last year totalled Bt750 million and we expect to see that figure rise to Bt800 million this year. Our focus, however, for the coming years will be the Thai market where the Boliden brand has existed for quite some time," Addisorn said.

The company's export sales are equivalent to about three times its domestic sales. It aims to grow domestic sales to equal exports over the next few years.

Its products have a 7-per-cent market share here and it is ranked sixth in terms of production capacity.

Although its products are 20 to 30 per cent more expensive than low-end batteries, their attraction is an 18-month guarantee, Addisorn said.

The company is investing Bt10 million in a customer-care centre that will provide on-site assistance for customers all over Thailand. It has an agreement with over 1,000 battery and dynamo repair centres countrywide to provide services.

"To expand our domestic market we have to focus on reaching our customers and we believe the best way we can do this is through service centres such as dynamo-repair shops and battery shops," Addisorn said.

 "We will also provide discounts for customers who use the services of other centres, like paint shops and car-wash centres," he added.

The company had a strong and positive response from customers at the Bangkok International Motor Expo last December, he said, adding that it will have a booth at this year's expo, which is being held at the end of this month. The company will also sponsor motor-sport events.

It will expand its production capacity to 1.5 million units from the current 1 million units to meet the rising demand it expects.

Addisorn said the expansion would cost more than Bt500 million but did not provide a date for the investment.

"We are not the first in the market and we are not aiming at being that any time soon, but we are definitely ahead in terms of innovation," he said.

Vijo Varghese

The Nation