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Published on March 11, 2008

"Raw-material costs have gone up about 6 per cent, or Bt10 million. Now we're addressing the problem by changing over to some lower-priced solvents and adjusting prices.

However, I cannot estimate right now how much product prices will be increased," managing director Vorasith Kahasathien said yesterday.

So far this year, prices for some products, such as dog shampoos and insecticides, have been hiked 7-8 per cent, he said. Wood preservatives, insecticides and agricultural insecticides are in line for the next round.

Sherwood Chemicals also manufacturers termiticides under market-leading brand Chaindrite, as well as pesticides and agricultural chemicals.

The company expects its net profit this year to be similar to or less than last year's Bt64 million, on sales expected to grow 5 per cent

from Bt671 million last year. The forecast assumes an oil price of US$95 to $100 (Bt3,000 to Bt3,200) per barrel and the baht at 32 to the US dollar.

Imported raw materials account for 28 per cent of Sherwood Chemicals' total costs. The company benefits from the baht's strength, but this cannot offset the cost increases in several raw materials.

The company will penetrate the Australian market this year after agencies there awarded it licences last year to sell pesticides and termiticides.

The Australian market is expected to contribute Bt10 million in sales this year.

Nalin eViboonchart

The Nation