WHY SOME ARE A CUT ABOVE THE REST

Five small and medium-sized Thai companies that have won this year's awards from Siam Commercial Bank and Sasin for their extraordinary performances and high potential, have expressed full confidence in their ability to weather the economic storm in 2009.

These companies - Taokaenoi Food and Marketing, Interlink Communication, Ubis (Asia), Botanique Co, and Bertram Chemical (1982), were the recipients of the Bai Pho Business Awards organised by SCB and the Chulalongkorn University's Sasin Graduate Institute of Business Administration.

Taokaenoi

Aitthipat Kulapongvanich, chief executive officer of Taokaenoi, said firms should first review their internal operations to prepare for any external developments. Importantly, the management should have the right attitude in reaction to an economic problem.

"If the economy next year will not be so good, you should be thinking of how to improve [your businesses]. Don't conclude that you can't do anything," he said.

"I had a meeting with our sales department today. I told them there is opportunity for every business. For instance, when the oil prices were expensive, the delivery business was booming."

Taokaenoi has been recognised for its entrepreneurial spirit and brand building, according to a release from the Bai Pho awards. The company, which was set up by Aitthipat, currently 23, five years ago, commands a leading 80 per cent share of the local fried seaweed market, and 60 per cent of all processed seaweed products.

Taokaenoi sales have jumped nearly seven fold, from Bt75 million in 2005 to Bt497 million in 2007. Aitthipat said the company is well on track to achieve its sales target of Bt750 million this year. Profit margin is still low at 4-5 per cent since the firm has continuously reinvested, he said.

Aitthipat said Taokaenoi's business principle is to share benefits and not to take advantage of its suppliers and customers because it believes this is a sustainable way to do business. As to its future direction, Taokaenoi will diversify into new products other than seaweeds, perhaps snacks that are both nutritious and delicious. The company also thinks it has a cost advantage to entering the Korean and Japanese markets, he said.

Ubis (Asia)

Ubis (Asia) is public-listed integrated manufacturer and distributor of sealing compounds and can-coating/lacquers for canning and beverage. The Bai Pho awards committee said the company is distinguished for its high quality and is among a few Thai companies that can licence their technologies to foreign companies.

The president of Ubis (Asia), Sawong Dhangwatnotai, said the company is expected to grow by more than 15 per cent this year compared to Bt472 million in 2007. Its business philosophy is: "If you can't be a leader, you have to be an early follower."

"The company views the crisis as an opportunity to buy small or medium-sized firms, which are doing the same or related businesses in Asia. We're a net cash company with zero debt," he said.

Sawong said Ubis is in a sector that is less volatile. People will keep consuming canned foods or even increasing their consumption as they spend more time at home during a crisis, he said.

Botanique

Botanique is a manufacturer of potpourri gift sets, sachets, fragrance and aromatic incense that exports 100 per cent of its products, most of them under its own brand. The Bai Pho awards has recognised Botanique for its "value creation" and innovation" in transforming valueless and agricultural wastes into high-value products with creativity in packaging and emotional marketing concept.

Poonpat Lohachitranont, CEO of Botanique, said the company views itself as a design company, which has begun its business with potpourris and will be expanding into other products.

The economic crisis will be a good opportunity for Botanique to expanding its markets because our competitors will decelerate, he said.

The company expects its sales to increase 50 per cent to Bt150 million this year with a profit margin of 28-30 per cent. Poonpat said Botanique has thrived on the concept "We're the one."

"This has two meanings: first, we will be No 1. Also, our team is united as one that will be moving our businesses forward," he said.

Bertram Chemical (1982)

The Bai Pho awards committee said Bertram  Chemical (1982), a market leader in ointment products, was outstanding for its branding and innovation because its "Siang Pure" brand was among a few Thai brands which have been recognised for more than 60 years. The company has introduced new products under the brand "Peppermint Field", including gel balm and balm stick which help it to reach younger consumers who are not familiar with traditional liquid-based balm.

Bertram Chemical's products have also been widely distributed in many countries like Cambodia, Laos, Hong Kong, Vietnam, Malaysia, Indonesia, Korea, US, and UK.

Marketing director Suwanna Akrapongpisak said Bertram Chemical was expected to post a profit of Bt60 million on sales of Bt400 million this year compared to the Bt333 million sales in 2007.

Suwanna said Bertram Chemical's management team tended not to worry too much with external situations that were uncontrollable. The company currently derives about half of its revenues from exports and it can continue expanding into new markets, she said.

"This year we have new markets in the US, Panama, and Philippines. Last year, we got Korea. It should continue to grow since now the world has been connected. What is popular in one country can easily spread to another one as long the products have good quality," she said.

Furthermore, its products are inexpensive and everyone can afford it, Suwanna said.

Interlink Communication

Listed on the stock market, Interlink reported net profit of Bt68 million on sales of Bt768 million for the first nine months of 2008, compared to sales of Bt864 million during 2007. Director and accounting manager Thanyarad Thiemudomlerk said for the whole 2008, Interlink should be able to maintain its profit margin and its sales should top Bt1 billion.

Interlink is an importer and distributor of computer cabling systems and telecommunication equipment with No 1 market share. The Bai Pho awards committee said Interlink distinguished itself with its innovation, value creation, and customer focus.

Thanyarad said Interlink was conservative in its business approach, which emphasised business sustainability.

"Our sales are not outstanding but our profit margin is high at 9-10 per cent. Other firms in the same business have tens of billions of baht in sales but they have only 3-4 per cent profit margin," she said.

Interlink's strategy to weather the current crisis is to take good care of its existing customers and they increasing their purchases. Since the company's products are a necessity for industry, it is expected to be less affected than other industries, said Thanyarad.

Besides distribution, Interlink's main business is engineering and installing fibre optic and other cables. The company has exerted risk management for the two businesses, she said.

The company's philosophy is to offer quality products at cheaper prices and better services, Thanyarad said.

Kittiratt Na Ranong, Sasin's Academic Affairs deputy director, explained that award winners must pass primary evaluation criteria and demonstrate distinctive qualifications critical to competitiveness, including customer focus, innovation, quality, adaptability to change, value creation, branding, efficiency, leadership and team building, social responsibility, and entrepreneurship.

pichaya@nationgroup.com