Srithai Superware, the world's largest manufacturer of melamine tableware, plans to develop a global network for S Natur, the firm's multi-level direct-selling arm for health, beauty and home products.
The company will launch the network in Burma, Laos and Cambodia by the end of the year, and in Indonesia, India, Vietnam and Malaysia next year.
The move follows the company's global expansion of its melamine business over nearly 30 years. Srithai products are now available in 105 markets, a number that will rise to 107 by year-end.
The company has adopted direct selling as an additional means of expanding its business, with the latest direct-sales office officially opened in India six months ago.
"We want to make our S Natur a global direct-sales brand with operations in all potential |regions, starting with Asean," chairman Sanan Angubolkul said yesterday.
"We will be the first local networking company to become public and listed in the local stock market," he said.
Sanan added that Asean was seen by the company as a high-potential region with a combined population approaching 600 million and a gross domestic product of US$2.76 trillion (Bt89.5 trillion).
Chief operating officer Banchar Haemintakun, for whom yesterday was the first day in office and who is responsible for the company's |S Natur direct-selling business, said the company would this |year open a branch in Mae Sot, which will be used as a centre |to expand its direct-selling business into Burma.
Another branch will be opened this year in Nong Khai to expand the direct-selling network into Laos.
"We plan to set up offices directly in both Indonesia and Vietnam next year," said Banchar, who has been in direct selling for 22 years and has worked with multinational companies such as Amway, Oriflame, Synergy and Agel Enterprise.
He said S Natur expected to increase its sales from last year's Bt100 million to Bt300 million this year.
"We [S Natur] aim to achieve Bt1 billion in sales in 2014, of which between Bt250 million and Bt300 million will be from overseas markets. The overseas business will rise to a 50-per-cent contribution in the next five years," said Banchar.
He added that the company planned to increase the number of sales representatives in its multi-level marketing system from the current 20,000 to about 40,000 by the end of this year. It expects to increase the number of representatives to at least 100,000 by 2014.
"We currently have 14 S Natur branches across all regions of |the Kingdom. We plan to invest Bt50 million this year to open |a new S Natur office on Ratchadaphisek Road [in Bangkok] and in equipment such as an information-technology system.
"The company will open a branch in Supan Buri soon and another three later this year, all outside Bangkok. This will make the total number of S Natur branch offices 19 by the end of this year," he added.
Sanan said Srithai had achieved Bt1.45 billion in sales in the first quarter, up 37 per cent from Bt1.05 billion posted in the same period last year.
Net profit grew dramatically by 75 per cent year on year to Bt65 million in the quarter.
"However, we found growth to be slower in April, with sales of Bt390 million, up from Bt330 million in the same month last year," he said.
He added that the company |had been less affected by the political unrest in Thailand than expected.
"We will invest about Bt700 million this year in upgrading our facilities, including machinery and moulding equipment, as well as in a new melamine factory in India," he said.