English
Thailand: SCGP maintains growth target for 2021
SCG Packaging Plc (SCGP) is undeterred by the third Covid-19 outbreak and is maintaining its total revenue target in 2021 at 100 billion baht due to its wide customer base in many countries.
However, being aware of mounting concerns over shortages of beds for patients in hospitals, the company is using recycled paper to make beds for the government.
“We’ve made 2,000 beds using recycled paper and supplied them to field hospitals,” SCGP chief financial officer Kulachet Dharachandra said yesterday.
Financially, the company is not worried over sales because it has a risk diversification plan as well as markets in Asean and Europe.
“While 2020 and 2021 have been tough for all businesses that face challenges from Covid-19, SCGP is committed to strong growth,” said SCGP chief executive Wichan Jitpukdee.
Last year, SCGP saw its revenue increase by 4% year-on-year to 92.78 billion baht and a net profit increase of 23% year-on-year to 6.45 billion baht.
The company is implementing an organic growth strategy with plans to increase packaging production capacity in Thailand, the Philippines and Indonesia.
In Thailand, SCGP plans to increase capacity to 347 million pieces of packaging products a year. It also wants to produce up to 53 million square metres of “flexible packaging”, the name of a product mixed with materials such as paper and plastics.
Both projects are scheduled to be completed by the fourth quarter of this year.
During the first quarter of 2021, SCGP saw its revenue in domestic and international markets increase by 12% year-on-year to 27.25 billion baht and its profits soared by 23% year-on-year to 2.1 billion baht.
Moreover, growth in demand in the Asean market is encouraging the company to focus more on products related to consumer lifestyles and health care.
Mr Kulachet said the company has already spent 4.6 billion of the 20 billion baht allocated for investments in 2021.
According to its plan, most of the budget — worth 15 billion baht — will go to new merger and partnership deals and capacity expansion to meet increasing demand.
Source: https://www.bangkokpost.com/business/2106575/scgp-maintains-growth-target-for-2021