TREEDOM GROUP, the No 1 manufacturer and exporter of oud oil in Thailand, has hit full speed in its bid to become the leading oud oil producer in Southeast Asia.
The company has extensive business plans to increase the production by 265 per cent by 2019 in order to service the continuous growth of the global oud oil market.
The global market has a combined value of between Bt2 billion to Bt3 billion, and has an average growth rate of 50 per cent a year.
Oud oil is used in the perfume industry all over the world and is expected to have a market value of Bt1 trillion by 2017.
Thailand is one of the top exporters of the product and aims to continue to increase and improve exports.
Andrew Steel, chief executive of The Treedom Group, said: “Since Treedom continues to be the No 1 exporter of oud oil in Thailand, our next goal will be to become a leading supplier in Southeast Asia.
“The company is currently entering a growth stage, which is part of a three-year strategy plan and our business model has been set in accordance with financial models that focus on three areas – planet, people and profit – in order for our business to run successfully and sustainably, taking into account the social and environmental concepts surrounding us.
“Within the next three years, the company has set a goal of becoming the No.1 oud oil exporter in Southeast Asia. Therefore, Treedom has invested in increasing our plantations, most recently having invested in land for plantations in Baan Jiarn, Trat province.”
Steel said the company aimed to increase production from 264 kilograms per year to 960kg per year, a 265-per-cent increase.
“This will be done by increasing the amount of distillation units at the factory from 119 units to 360 units in 2019. This will enable us to penetrate both retail and wholesale oud oil markets,” he said.
Treedom plans to drive 60 per cent of its revenue from wholesale, with a high focus on the Middle Eastern market, specifically Saudi Arabia, and the perfume houses in Europe.
“We will focus on cosmetic producers as well, as most of the big players in the market are demanding a high supply of oud oil, in which the quality can be controlled and maintained in the volume they require.”
Regarding retail sales, Treedom provides retail oud oil through its website under the brand Dar al Oud, exporting around the world to be placed in some of the most famous retail outlets in the Middle East. It does this to penetrate the luxury market.
The company said the oil by nature was an expensive product.
However, it added that there were other uses for it such as for religion. Therefore the demand was constantly high.
Treedom said it took advantage of these factors with Dar al Oud and was in deep discussions with distributing partners in the Middle East, Europe and America.
This year Treedom has set a budget of no less than Bt100 million, with an accumulated profit of more than Bt200 million and assets of more than Bt185 million.
“Not only do we focus on business, we improve our social surroundings and move towards a sustainable future by supporting Plant A Tree Today: PATT Foundation and providing an office for the foundation and other support,” Steel said.
He said the company also held annual events to support the communities it had a presence in such as tree planting and offering scholarships to local youths.