Saha Group moves into property development

The group signed a memorandum of understanding for the acquisition yesterday. The diversification comes at the time when the Saha Group's conventional consumer products business is suffering from lower demand.

"The partnership with Siam Zokei will also be the starting point for the Saha Group to move into the retail business. The group has also an idea to develop mini shopping malls to support growing small and medium-sized communities both in Bangkok and major provinces," said group chairman Boonsithi Chokwatana.

He said the investment was in line with the Saha Group's strategy to diversify into many areas of business, including trading, manufacturing, industrial estate development, services, health products, property and retail-complex development.

Under the new partnership deal, the Saha Group will invest almost Bt100 million for the stake in Siam Zokei, which will be 49-per-cent owned by Japanese shareholders. Together, they will develop commercial and residential complexes both in Bangkok and major provinces. Later they plan to expand into Indochina, particularly Vietnam and Cambodia. Four-year-old Siam Zokei is currently developing nine projects in Thailand under the "Peaks" brand, catering mostly to foreigners from Europe, the US and Japan.

Boonsithi said the group had many land banks of more than 100 rai in Bangkok, including North Park on Vibhavadi-Rangsit Road, Sathupradit, Bang Na-Trad, and Thonburi. With a speciality in design, the Japanese partner will maximise the benefits of the Saha Group's land bank. Their first joint projects, worth Bt1.6 billion, are an office complex in North Park and a condominium project in the Sathupradit area. In the future, the Saha Group's existing industrial parks in Sri Racha, Kabin Buri and Lamphun may be turned into small towns to feature all the group's retail and service facilities such as small shopping complexes, 108 Shop mini-market outlets and vending machines.

Saha Group yesterday kicked off its export and trade exhibition at Queen Sirikit National Convention Centre. Running from June 29 to July 1, the fair is a showcase for the company's products and a platform for new business deals. Some of the proceeds will be donated to His Majesty the King.

Boonkiet Chokwatana, president of ICC International, said the company was pursuing product innovation this year to tap into global consumer demand. Boonkiet was confident the new products would stimulate consumer demand "especially during this time of moderately low purchasing power when people are becoming more cautious about their spending".

Irrespective of pessimistic economic factors, all Saha Group business units continue to seek new opportunities, and Boonkiet hinted at 10 important deals to be signed at the annual fair. They include the appointment of dealers in Vietnam, India, Cambodia and the Philippines.

"For business to be successful during this time of economic slowdown we need to be able to stimulate consumer spending," Boonkiet said. "We aim to present more than 1,000 product varieties, all at very special prices, at this year's event, including food and beverages, fashion items, cosmetics, shoes and household equipment. We will also provide a convenient, free-of-charge delivery service, regardless of any minimum purchase or distance limit."

Separately, Boonsithi said GDP growth could slip below 3 per cent and the economy could end up in the red, due to the strong baht.

The most appropriate level for the baht is Bt38 against the dollar, he added. Boonsithi said the strong baht increased export costs and international buyers were turning to countries offering "the best price". Thailand is losing export competitiveness, he added.

Kwanchai  Rungfapaisarn

The Nation