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Published on March 13, 2008

Costing more than Bt1 billion, the facility is the biggest centre of its type in Thailand, offering full services and leading-edge technology. The additional capacity will help Diethelm in strengthening its No 1 position in marketing and distribution of healthcare products.

With 30,000 square metres of storage area in the initial phase, the new centre can easily stock 20,000 pallets of goods. It has the potential for expansion to 44,000 square metres or 35,000 pallets.

Diethelm operates a comprehensive network that is now serving more than 40,000 hospitals, doctors, pharmacies and drugstores around the nation.

DKSH Holding president and CEO Dr Joerg Wolle said that under its market-expansion services, DKSH would become the preferred partner for companies looking to expand their business in Asia or to access Asia's sourcing markets.

"We have announced a new branding to redefine our business activities as market-expansion services," said Wolle.

"We help companies who wish to grow their business in Asia or those who want to access the Asia market by providing them with knowledge, advice, relationships and on-the-ground logistics. We source raw materials from Asia and export to pharmaceutical, chemical and food companies in Europe and the US. We also help companies which want to set up their production facilities in Asia."

Wolle said the company had held discussions with operators in Europe, the US and Africa.

"While the US is now facing a challenging economic recession and Europe is witnessing a slowdown in growth, Asia has become the largest growth market and will be the locomotive of growth for many years," he said. Wolle said DKSH was deeply rooted in Asia. About 95 per cent of its specialists have been located in Asia. He said the oldest market in Asia was Japan, where the company has existed for 143 years. The company has operated in Thailand for 102 years.

Thailand continues to be the largest country operation of DKSH. The Thai operation last year reached Bt95 billion in sales - one-third of the group's sales posted at Bt272 billion. In Thailand, the company deals with more than 350 exclusive suppliers and between 150,000 and 160,000 customers. Worldwide, DKSH has more than 2,000 exclusive suppliers and 600,000 customers.

"While all the listed companies in Thailand reported a 10-per-cent decline in net profits for 2007, according to Kasikornbank, our sales were growing by 8 per cent last year with profitability increased by 15 per cent," said Wolle.

 Wolle said the Thai operation expected a dramatic sales increase in 2008 that would be double the country's GDP growth, which is expected to be 4.5 per cent.

Kwanchai Rungfapaisarn

The Nation