The new plant is expected to be completed by the end of this year and will boost production capacity from 700 million litres per year to 840 million litres.

The finance plan will increase its debt per equity ratio from 0.45 to 0.7.

Managing director Vorasith Kahasathien said Australian agencies had granted licenses for the company's product but they would not be effective until the middle of next year. After Sherwood penetrates the market in Australia, it will continue its expansion into markets in Indonesia and Malaysia.

"We aim to increase our export revenue from Bt5 million to Bt50 million in the next two years," Vorasith said.

He expected revenue growth of only 6 per cent this year, compared to an average of more than 10 per cent, due to the flagging economy.

He said prices of products such as shampoo for dogs and wood-preserving chemicals would increase in the second half of this year because of rising production costs and oil prices.

 "It also depends on consumer confidence in the economy. If people spend more money, I guess most companies in this business will increase their prices," Vorasith said.

He said prices for these products had not been raised for several years because of the economic slowdown and aggressive competition in the market.

Sherwood also plans to increase its total market share by spending around Bt60 million to promote its Chaindrite insect-repellant against tough competition from rivals, including Bayer Group, the market leader with the Baygon brand name.

Presently, Baygon has 38 per cent of the total market, while Chaindrite accounts for 15 per cent.

Chalida Ekvitthayavechnukul

The Nation