Latex pillow and bed mattress maker Latex Systems Plc prepares to introduce more of its own brand names this year to tap the retail section, intending to raise funds in the Market for Option Financial Investment (MAI) and targeting sales development of 15% each year.
Handling director Pathumporn Trivisavavet states the relocation will diversify threat.
Handling director Pathumporn Trivisavavet stated the business will introduce 3 brand-new brand names covering all market sectors, consisting of Sleepertist for high-end, TNF for mid-level and Nap & & Night for the lower-end market.
” Having our own brand names can assist diversify threat. They will be important business possessions,” she stated. “Non-branded production, which is how we presently offer through wholesale, is not sustainable.”
The list price for Sleepertist pillows will vary from 2,000 to 5,000 baht, while bed mattress will be more than 40,000 baht. For TNF, pillows will be priced at 1,000-2,000 baht and bed mattress at 10,000-40,000 baht.
Nap & & Night will be priced at 400-1,000 baht for pillows and 6,000-20,000 baht for bed mattress. In the very first 2 years after the brand names are released, the business desires sales volume from retail items to represent 10% of overall sales, Mrs Pathumporn stated.
The brand-new brand names will be released in the middle of the year and presented in stores and shopping centers by the end of 2019, beginning with TNF and Nap & & Night.
Sleepertist will be presented in display rooms that the business will invest an overall of 50 million baht to build in 3 places, consisting of Bangkok and crucial traveler locations Pattaya and Phuket to tap Chinese purchasers.
” Chinese need is really strong,” Mrs Pathumporn stated. “It has actually driven our sales in 2016-18 with a leap development in 2017, as Thai latex pillows and bed mattress have actually been preferred and the world’s top.”
The flagship display rooms will likewise be a circulation centre for the wholesaler in the area. Building and construction of the 3 display rooms will be finished in the 3rd quarter of 2020 for an opening in the 4th quarter of that year.
” Our very first brand name, Latex System, was begun in 2015 after among our Chinese wholesalers asked for a brand name to market in China,” stated Mrs Pathumporn, the 41-year-old youngest child of Vorathep Wongsasuthikul, president of Thai Rubber Latex Corporation Thailand Plc (TRUBB), an SET-listed manufacturer of natural focused latex.
In 2017, the business’s overall sales increased to 753 million baht from 429 million baht in 2016 and 399 million baht in 2015. The crucial chauffeur was non-branded production, which represented 97% of overall sales.
Non-branded sales increased in 2017 from 400 million baht to 730 million baht, consisting of 654 million baht from wholesale and 77 million baht from the bed mattress factory, up from 391 million and 9 million baht, respectively.
In the very first 9 months of 2018, the business reported 121 million baht in net earnings on overall sales of 664 million baht, up from 52 million and 493 million baht in the exact same duration of 2017.
Non-branded sales increased to 643 million baht from 478 million baht, which represented 96% of overall sales.
Throughout 2015-17, 63% of sales were from bed mattress, 32% from pillows and 5% from other latex devices. Some 70% were from domestic sales that consisted of re-export, 21% from exports to China and 6% from exports to South Korea.
Mrs Pathumporn stated the business prepares to raise funds on the MAI this year.
Funds raised will be utilized to pay back a loan from in 2015 to get a latex pillow factory in Rayong from Thai Natural Foam Co with a financial investment of 243 million baht.
Latex Systems likewise prepares to invest 133 million baht to broaden a 2nd assembly line that will begin by the very first quarter next year.
Its production capability amounts to more than 60,000 bed mattress and over 2 million pillows a year.
Established in 2013, the business has actually signed up capital of 225 million baht with paid-up capital of 158.78 million baht at a par worth of 0.50 baht. It will provide 132.43 million shares that represent 29.43% of typical shares.
After a going public, significant investor TRUBB’s shares in Latex Systems will reduce to 39.64% from the present 56.17%.
A stake of the second-largest investor, the Wongsasuthikul household, will decrease to 13.53% from 19.17% at present.
KGI Securities Thailand is the monetary consultant.
