Advance Agro cuts growth estimate, plans 'plant a paper tree' campaign

Advance Agro, manufacturer of Double A paper, has lowered its expected sales growth for paper products this year to 10 per cent, after seeing slow demand from domestic corporate customers as well as a slowdown overseas.

The company posted sales of Bt5 billion for paper products last year, up by 15 per cent from 2007.

Senior executive vice president Charnvit Jarusombathi said yesterday that the company would focus more on the state-agency market, which offers high potential amid the economic downturn.

Corporate customers have been hit by the downturn, with many firms reducing paper consumption to save expenses. This has caused Advanced Agro to turn to the state market by way of compensation, he said.

Advance Agro was first sharply affected by the economic crisis towards the end of last year, when its dealers suspended stock purchases. However, sales volume in the end-user market has been unchanged, which has encouraged the company to go for an overall sales-growth target of 10 per cent for this year.

He said slow growth in the international market had caused Advance Agro to boost domestic growth, allocating a first-quarter marketing budget of Bt25 million for two new TV advertising spots.

One ad spot is a campaign against global warming called "101 paper trees on paddy-ridge". For each ream (500 sheets) of paper purchased across the country, farmers will get a 'paper-producing' tree to plant on their paddy-ridges, Charnvit said.

"They can sell paper trees to the company after three years in order to make paper products. The campaign will help each farmer get extra income at Bt5,000 from selling paper trees," he said.

Advance Agro projects the sale of 25 million reams of paper from the campaign.