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Srithai recently informed the Stock Exchange of Thailand that it and Hanacombi would set up a joint venture with registered capital of Bt17 million. Srithai will own 51 per cent and Hanacombi 49 per cent.

The joint venture will produce and distribute L&L products in Thailand and neighbouring countries.

Srithai Superware president Sanan Angubolkul yesterday said his company had distributed L&L products locally for three years before deciding on the partnership.

Early this year, Srithai opened a flagship L&L store in Seacon Square shopping centre. With the outlet posting good revenue figures, Hanacombi decided to appoint Srithai as its regional distributor.

"Sales revenue in Thailand is excellent. This year, we expect to generate revenue of Bt100 million from L&L products alone, up from Bt40 million last year. Hanacombi is very confident about marketing in Thailand and other countries in the region," he said.

At present, the L&L brand is sold in 100,00 retail outlets in 100 countries.

Once the new joint venture is set up, Sanan said Hanacombi would export its products from Vietnam instead of South Korea, benefiting from lower import duty. Thailand's import duty for goods from South Korea is 20 per cent, while merchandise from Vietnam is charged at only 5 per cent, Sanan said.

Srithai has a melamine and plastic-injection plant in Vietnam. Hanacombi will order food-container products from Srithai and distribute them throughout the region. It will fund the production in Vietnam, so Srithai will benefit from increases in both production capacity and working capital.

Sanan said Srithai opened a second L&L store in The Esplanade shopping centre yesterday and planned a third one in the Siam Square area later this year. Three more are on track for next year, when revenue from L&L products is expected to double from Bt100 million this year.

Srithai will spend roughly Bt800 million next year to improve its plastic and melamine production in Thailand. As a result, it expects revenue growth next year of 20 per cent over this year's target of Bt5.04 billion.