Berli Jucker, a major Thai glass manufacturer, consumer product distributor and trading firm, will invest about THB 1 billion in 2009 to launch its Vietnam glass plant as part of an overseas business …
Berli Jucker, a major Thai glass manufacturer, consumer product distributor and trading firm, will invest about THB 1 billion in 2009 to launch its Vietnam glass plant as part of an overseas business expansion. President Aswin Techajareonvikul said on 28 August 2008 that most of the budget would be used to build a melting furnace. Berli Jucker built the plant 10 years ago but did not start operations due to the economic crisis that began in 1997. The company is also finalising an investment figure for the manufacture of consumer products at a second facility in Vietnam. Vietnamese investors as well as foreigners are being wooed to take part in both projects. “Project details should be concluded within the 3Q”, Mr. Aswin said. Berli Jucker is 75.04% owned by TCC Holding, which is majority-owned by Charoen Sirivadhabhakdi. It is a major bottle supplier to Thai Beverage, Charoen“s liquor company. Under the overseas expansion plan, Berli Jucker aims to penetrate Vietnam, Laos and Cambodia, which have a combined population of about 100 million. Vietnam is the priority market. Mr. Aswin said the company would finalise sources of funding for the overseas projects in the current quarter. Initially, it plans to raise finance by increasing registered capital. This method not only raises funds for the company, but also helps it to increase its free float on the Stock Exchange of Thailand to more than 15%. Other sources of funding will be the company“s cash flow and bank loans. “Berli Jucker“s free float has curbed our market price for a long time. If we increase the company“s registered capital, we can solve this problem and have money for the new investment”, he said. Berli Jucker targets overall revenue growth of 10% this year, from last year“s THB 19.39 billion. The company plans to increase snack prices by 10% by the end of the year. It adjusted its industrial glass prices by 8 to 10% in the 1H.