The Tipco Group plans to rely more heavily on domestic sales to reach its target of Bt15 billion this year after it failed to reach Bt14 billion last year. The strong baht was a major factor affecting its export business, which contributes half of its sales.

Meanwhile, the group expects its new plant in Ayutthaya province to start manufacturing in the next few months.

It cost Bt1 billion to buy the land, install machinery and transfer all production lines for fruit-juice products from its current plant in Prachuap Khiri Khan.

Currently, its food business is run by two subsidiaries: Tipco Foods and Tipco F&B, the latter of which sells fruit juices under the main brand of Tipco.

Vivat Limsakdakul, vice president of Tipco Group subsidiary The Thai Pineapple Company, said yesterday the business unit generated Bt3.7 billion last year, which represented only 2-per-cent growth.

He said the strong baht throughout last year was a major factor.

The baht has strengthened from 40 to the US$1 to slightly above 35, which has caused the company's export revenues to fall when exchanged into baht. Its export sales last year were $76 million (Bt2.64 billion).

Nevertheless, the company insisted on setting a significant sales growth target that Vivat admitted has resulted in high pressure.

Its strategies include launching a variety of new products, building awareness of the Tipco brand and expanding production capacity.

Bancha Suratanachaikul, Tipco F&B's operation director for the beverage business, said the company planned to launch ten new products and would, once again, seriously market its 40 per cent fruit juices.

Bancha said the company would start transferring all fruit-juice production machinery to the new plant in Ayutthaya and expects to complete the task this year. The Prachuap Khiri Khan plant will be for manufacturing canned pineapple and other fruits and vegetable for export only.

Nitida Asawanipont

The Nation