MEGA Lifesciences Plc, a pharmaceutical and consumer health company, will commence operating a US$15 million (Bt450 million) second factory for soft gelatine capsules in Bangpoo Industrial Estate by January.
“Our first factory on a three-rai site in Bangpoo Industrial Estate has already reached full capacity of about two billion capsules per year,” CEO Vivek Dhawan said last week.
“Our second factory, located on a different seven-rai site in the same industrial estate, will allow us to meet sales growth for three to five years. We have also purchased a 28-rai site in the estate for future expansion,” he said.
As sales are targeted to expand more than 20 per cent per year on organic growth as well as new market opportunities for next year and beyond, the second plant will increase capacity to 3.8 billion capsules.
There is potential for mergers and acquisitions in many neighbouring markets, especially Myanmar, Vietnam and Cambodia, where the company provides distribution services for pharmaceutical and consumer healthcare products to individual principals, both local and international.
The company would list on the Thai stock exchange by next month after floating 216.3 million shares or 25 per cent of total shares at Bt0.5 par value per share. The proceeds would be used to pay down debt and build warehouses in Vietnam and plants in Thailand in three to five years.
Starting in Thailand about 30 years ago with only 10 people and two machines, Mega Lifesciences is now a leading pharmaceutical and consumer healthcare company in Southeast Asia with operations in 29 markets around the world, including a plant in Australia.
Last week the company posted $194.5 million in sales, of which 30 per cent came from Myanmar, 24.8 per cent from Vietnam and 19.5 per cent from Thailand.
About 45 per cent of sales came from its own branded products, 46 per cent from distribution services provided to principal brands and 8.9 per cent from original equipment manufacturing.
Mega Lifesciences has signalled its confidence in the potential for future growth and development of the Myanmar market, where it has operated since 1995 with two key businesses – Maxxcare, a leading distributor of pharmaceutical and consumer goods, servicing more than 27,000 outlets across a nationwide network, and Mega We Care, a pharmaceutical and supplements business.
The company employs over 1,400 people and boasts one of the most comprehensive and advanced distribution networks, reaching 85 per cent of the country through eight warehouses serving thousands of small family-run shops.
“We see Mega as a partner in the growth of Myanmar. We have grown and developed over the past 18 years, and we are committed to continuing to bring new technologies and helping to develop human capital for the future of the country,” he added.