Ticon Industrial Connection plc, a Thai
factory leasing and logistics service provider, is planning expansion in Asean
countries as it seeks “suitable partners” with Malaysia as one of its targeted
markets.
According
to its managing director Virapan Pulges, the Thai company expects to embark on
regional expansion in two years and believes that Asean countries such as
Indonesia, Vietnam and even Myanmar at a later stage, could also hold potential
for the kind of services it offers.
“At the
moment, we are trying to work with CIMB Group Holdings Bhd to find good partners
to go into other countries,” he told The Malaysian Reserve when met recently at
the CIMB Asean Conference 2012 in Kuala Lumpur last week.
He said
the company was still in early stages of finding suitable partners.
However,
Pulges said presently, land ownership laws across Asean countries is one of the
major impediments faced by a Thai public listed company (plc) as it looks
towards regional expansion.
Easing
of regulations for matters like land ownership has to take place for companies
and regional countries to benefit, said Pulges.
Ticon
general manager for business development Ian Hamilton said they may look at
moving into the Malaysian market once the company starts regional expansion
activities.
However,
he notes that the logistics market in Malaysia — with the likes of Kontena
Nasional Bhd and MISC Integrated Logistics Sdn Bhd — is relatively
well-developed compared to other ones such as in Indonesia and Vietnam.
The
company is presently focused on raising capital for an existing logistics warehouse
development project in the Eastern seaboard of Thailand.
Pulges
said Ticon will spend five billion baht (RM502.5 million) in capital
expenditure this year for factories and warehouse development in Thailand.
It
plans to raise one billion baht from a share capital exercise and another four
billion baht by selling developed property to property funds.
He said
the company has a 65% market share in the ready built factory segment with the
remaining 35% made up of industrial estate developers whose focus extends
beyond just factory building.
On
prospects, the company expects to double its revenue to five billion baht for
its financial year ended Dec 31, 2012 (FY12), compared to 2.3 billion baht when
it was affected by the floods in Bangkok.
Pulges
said sales of factories worth 1.5 billion baht that was supposed to be made
last year could not be made due to the catastrophe, with about 760 million baht
sold as at the first-quarter of this year.
He
added Ticon expects to sell another two billion baht worth of warehouses to the
property fund and 1.5 billion baht of factories this year. It also expects to
register 800 million-900 million baht in rental revenue for FY12.
Ticon’s
customers are 95% foreign companies that operate in the manufacturing sector in
Thailand with Japanese making up a 65% of the client base, Hamilton said.
Anuja
Ravendran
Business & Investment Opportunities
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