TTTC expects 30% revenue contribution from non-automotive business in 5 years

Corporate June 14, 2018 01:00

By KWANCHAI RUNGFAPAISARN
THE NATION

TOYOTA TSUSHO (Thailand) or TTTC, a trading house in the kingdom, has adjusted its business strategy, focusing on contribution from non-automotive products in its trading activities.



President Kiyoyoshi Oba revealed that the company has been operating in Thailand for 61 years in support of the operations of Toyota Motor. 

“Our business units comprise automotive (80 per cent) including materials, parts and accessories, and non-automotive (20 per cent) such as the production of uniforms for manufacturing personnel, insurance broker services, chemical additives, plastic resins, steel bars and frozen seafood,” he said adding that the company’s overall performance for the first five months was satisfactory. It posted a total revenue from January to May 2018 of Bt32.5 billion, an increase of 4 per cent from the same period last year. 

To comply with the business strategies of the parent company in Japan, Oba said the company will further expand its non-automotive business unit by operating as a trading house aiming at Japanese life style and food products. The company expects the ratio of contribution from non-automotive products to reach 30 per cent of its total revenue in the next five years.

“We also plan to enter into energy business such as petroleum trading, including diesel, bunker and asphalt and health care products,” he said.

Toyota Tsusho (Thailand) will host “Toyotsu Japan Festival 2018’, the largest festival of food and lifestyle products from Japan in Thailand and expects the show to generate more than Bt30 million in revenue. 

The event will be held at Royal Paragon Hall, Siam Paragon, from June 29 to July 1, 2018. It will help stimulate growth of the Thai economy and to emphasise the company’s status as a leading trading house in Thailand. During the event, TTTC will also announce details of its “Sendai” airport operation, the latest business unit of the Toyota Tsusho Corporation and the first time a private company operate an airport in Japan. 

Toyota Tsusho Corporation, the parent company, is exploring new business opportunities by taking over the operations of the Sendai Airport in Japan. With an investment budget of US$10 million, the company sees great business and tourism opportunities in Sendai city, one of the seven biggest cities in Japan, located in the Tohoku area. 

First private airport operator 

It is the first time that the Japanese government has allowed a private company to operate an airport. The Sendai mega project is carried out by three investors - Tokyu Group, Maeda Construction, and Toyota Tsusho Corporation, It is expected to generate US$57 million in revenue this year and up to US$63 million in 2019.

Toshiyuki Azeo, executive vice president of global parts & logistics management department, Toyota Tsusho (Thailand), added that Toyota Tsusho Corporation has started operating Sendai airport since July 2016. 

Sendai is a key city and the gateway to many others in the Tohoku area where tourists can visit all year round. Sendai is only 300 km from Tokyo. The transportation from Tokyo to Sendai by Shinkansen Tohoku train line is just 1 hour and 40 minutes. The Sendai Airport handles 58 flights per day, both inbound and outbound, with 12 airlines using the airport, and a total of 3,438,961 travellers per year (9,422 travellers per day). The airport offers complete services and facilities such as shops, food stores, a view platform and a multipurpose hall amomg others.

Anujtha Jaovisidha, general manager of corporate planning department, the event director of the “Toyotsu Japan Festival 2018”, was pleased with success of last year's event, which attracted more than 46,000 visitors. 

Most of the visitors were families (80 per cent Thais) and the event posted a net revenue of Bt20 million.

“This year, we invested Bt20 million to organize the festival under the theme “Nice to meet you Tohoku”, based on the Sendai Tanabata festival which is the biggest Tanabata festival in Japan. 

Visitors will see interesting facts about Sendai city, the new and upcoming destination in the Tohoku area. The target customers are both families and the younger generation, who love to visit Japan,” said Anujtha.

She said the target number of visitors during the three days of the festival (June 29 and July 1) is 80,000 with estimated revenue of Bt30 million. 

 

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