Thai conglomerate Loxley group has prepared measures to deal with the possible worst-case scenario of the political disturbance not ending soon.
Loxley senior executive vice-president Chalermchoke Lamsam said the group, which employs around 1,000 staff, would not recruit new employees and might cut costs including sponsorships.
He said that Thailand’s economy, which depends on foreign investment, would face difficulty if the country’s political certainty continued much longer as foreign investors would be reluctant to investment in the country.
He is concerned that if the political situation does not improved quickly, local companies will feel the impact and have to lay off staff or trim bonus.
Chalermchoke said that Loxley was not involved in politics and was solely focused on doing businesses, which ranged from providing IT solution to trading and renewable energy.
He said the group's revenue this year was expected to be affected if new state projects were delayed given a new government is yet to be elected.
Around 60 per cent of Loxley’s revenue flowed from state projects.
Chalermchoke said that the impact on the group's trading business was expected to be seen in the second quarter.
The trading business engages in manufacturing and distribution of consumers products and industrial chemicals and the distribution of construction equipment, tools and services, automobile services and other specialised procurements that meet customers’ requirements.
Chalermchoke said that despite the gloomy outlook, Loxley’s telecom business, Loxley Wireless, had clinched a deal from the Office of the Welfare Promotion Commission for Teachers and Educational Personnel to manage the latter’s Suksapan Panit shops in schools.
This Suksapan Panit shop sell educational goods such as student uniforms and textbooks.
Loxley will use software technology to manage the shops’ inventories and will promote some of the group’s products at the shops so its brand is recognised by a new generation of consumers.
Loxley Wireless is expected to post revenue of Bt4 billion this year, up from Bt3 billion last year. Last year it made a profit of Bt300 million.
Chalermchoke said that Loxley, together with its Thai IT service provider partner Somapa Information Technology, were soon expected to clinch a deal to provide an airport information management system to the Maldives’ airport for six years.
Loxley recently signed two digital television network and studio equipment contracts worth more than Bt1 billion with the Royal Thai Army Radio and Television Station, the operator of TV Channel 5.
One contract was for two sets of network multiplexer equipment worth more than Bt500 million.
The other contract, worth more than Bt580 million, was to provide high-definition television equipment for Channel 5’s new digital studio.
Loxley Wireless, together with Samart Communication Services and Advanced Information Technology, have partnered to set up a Bt30 million joint venture, SLA Asia Co, to provide total ICT solutions in foreign markets, with the primary focus Cambodia, Laos, Myanmar and Vietnam.
The joint venture is targeting revenue of Bt1 billion within three years.