Nahm deal aimed at top end of the market

Sasithorn Ongdee

The Nation

Although having taken an 80-per-cent stake in Nahm from the Phenchati family and other existing shareholders, the 260-year-old German firm will initially keep the company's executive structure unchanged.

Burkhard Schmidt, international sales director for sanitary-ware and furniture at Villeroy & Boch, said the takeover was his firm's first move into Asia in terms of a production base.

"We chose Thailand, especially Nahm, as our production base because of its good quality," Schmidt said. "We believe the sanitary-ware market in Asia is growing fast."

He declined to reveal details of the takeover's cost but said he believed all participants were happy.

Nahm's registered capital is Bt470 million. It recorded sales of Bt520 million last year. Thailand's total sanitary-ware market is valued at about Bt5.5 billion.

Meanwhile, Nahm says the deal will see it double its annual production capacity next year, from 500,000 units to 1 million.

Sumet Indamra, vice president for marketing and export at Nahm, said the deal had taken a year to negotiate.

"Buyers and sellers negotiated by themselves without any 'matchmaker'," he said.

Nahm will continue to produce unique, high quality products. The advantage of the deal will be to allow an expansion of production to meet the double-market needs of both the Thai and the German brands.

"The company expects its sales to increase 100 per cent within two years," Sumet said, adding that the acquisition would help Nahm compete with large international brands.

In the past, the company was unable to produce enough high-quality products to meet purchase orders, consequently losing opportunities to expand its markets.

Previously, Nahm exported 40 per cent of its production. Only one-fourth of this bore its own Nahm brand, a proportion Sumet described as insignificant.

After the acquisition, the company will continue to use the name Nahm Sanitaryware and the Nahm brand.

Villeroy & Boch will transfer know-how and new techniques to Nahm, to strengthen the local brand with innovations and technologies for design and creativity. It will also boost Nahm's production capacity to make it a world-class brand like Villeroy & Boch, Sumet said.

The local company's expanded production lines will begin working next year.

"Nahm Sanitaryware expects sales of Bt530 million next year," Sumet said.