NEO CORPORATE yesterday marked a new milestone in its operations with the official opening of an integrated manufacturing plant, equipped with a world-class automated warehouse and an R&D centre at a total cost of Bt2 billion.
Located on a 190-rai (30-hectare) plot in Pathum Thani, the setup of the new integrated facilities is in line with the company’s plan to grow sales and contributions from overseas markets, especially CLMV countries (Cambodia, Laos, Myanmar, and Vietnam), China, India, and the US. Neo Corporate targets its sales revenue to reach Bt10 billion by 2022, up from Bt6.6 billion this year.
Sutthidej Thakolsri, chairman and managing director of Neo Corporate Co Ltd, the leading Thai manufacturer and distributor of consumer products under the brands Fineline, D-nee, BeNice, Tros, Eversense, Vivite and Tomi, said that the company’s total sales revenue for 2022 will rise to Bt10 billion, of which 25 per cent will come from exports. In 2018, Neo’s exports contributed 14 per cent of its overall revenue.
“We are planning to export more to China, India and the United States. Neo is currently assessing the plan to establish overseas offices. However, this would not happen in the near future,” he said.
“We have invested in learning and knowledge centres at the new factory and the R&D centre. We plan to develop raw materials in Thailand, to be used in our export products. In strategic terms, we have developed and maintained our business in a more upstream direction,” said Sutthidej, adding that the R&D centre also reflects the company’s vision of introducing innovative products for the premium segment. They will also focus on efficiency enhancement and cost-cutting through using robots in the production line in order to double the speed of production, he said.
Sutthidej said the Bt2-billion investment in the new facility included the costs of land, the setup of various systems, as well as the new production line – a partially automatic, robotic system. The investment also covered the Bt400 million warehouse, equipped with the AS/RS system (Automated Storage and Retrieval System) for storing products. The system promises efficiency and the ability to save up to 60 per cent of storage space, thereby reducing operating costs. The robotics system will be deployed for a faster and more efficient manufacturing process, while workers can improve their skills in working with robots. Over 10 high-speed automatic bottling and packing (pouch) robots have been installed.
He said capacity of the new factory will increase by between 100 and 125 per cent from the company’s old factory in Min Buri, which was closed down at the end of last year.
“We gradually transitioned each part of the manufacturing process to the new factory. We started manufacturing at the new factory for the first time in August last year. Currently, the new factory manufactures all products of the company,” said Sutthidej.
He said that the company has focused on various marketing research, conducting over 200 studies per annum to develop and increase product quality to meet international standards and satisfy the constant changes in consumer behaviour of all target segments. The company has also collaborated with partners and world-class institutions to introduce new innovations, ensuring, Neo Corporate’s products remain popular among Thai consumers. The company has also marketed its products overseas.
To enhance its competitive advantage, Neo Corporate is pushing for the development of new innovations for the natural and organic segment. Some have already hit the shelves, including Fineline fabric softener that contains highly concentrated softening chemicals derived from natural sources; D-nee baby fabric care, the first organic product with France’s Ecocert certification and unique scent which makes it highly popular in Thailand and the CLMV markets; and BeNice shower cream that boasts the double-firming quality derived from wheat protein, micro collagen and fruit essence. The shower cream contains high vitamins and anti-oxidants, being an exclusive formula of BeNice and the first product of its kind in Thailand.