Bangkok--29 Mar--Worklink PR
Siam Motors Industries takes the lead as a service provider in material handling business, forklift and its accessories, enhancing business potentiality and consumer base in various industrial groups and forklift operators, foraying into the second-hand market while being determined to drive growth in the CLMV. Foreseeing bright sentiment for Thailand's economy in 2018 bolstered by rapid development of the EEC which also stimulates growth of the industrial sector, triggering continuous surge of demands for forklifts. The company recently unveiled state-of-the-art and energy-saving forklifts TX Series model, targeting total revenue of 1,260 million baht in 2018. UniCarriers Asia affirms sales revenue of forklifts in Thailand will be the highest in Southeast Asia and will push more revenues.
Mr. Pratarnwong Phornprapha, President of Siam Motors Industries Co., Ltd. – one of the leading importers and distributors of UniCarriers Forklift and an integrated material handling service provider for a factory, a distribution center, and a warehouse — said this year the company is emphasizing the enhancement of the integrated material handling service in the warehouse and all types of factory, while aiming to become a leading material handling service provider.
The company is planning the expansion of new product line related to forklift parts and accessories of all brands and traction batteries, to generate revenue from existing consumer base and create new revenue channels for further growth. Services on forklift rental with driver continues to find its niche, and existing customers are well-serviced. At present, the company's portfolio includes 70% from rental and 30% from sales.
The company is also positioned to expand into the CLMV markets because it anticipates rising demand for second-hand forklifts, focusing on refurbishing old forklifts into A-grade second-hand forklifts which is in a good condition and ready for use. The company currently owns over 400-500 used forklifts from renting, which can be made value-added and generate additional income. The company sees an advantage and its reliability over other players because it is well-functioning with services quality and facilities such as teams of experienced mechanics, complete service center, and supplies of spare parts.
An overview of material handling business and logistics business tends to continue growing as a result of increased domestic and international material handling, bolstered by the burgeoning global trade and investment. Such factor reinforces demands for forklifts in Thailand because utilization of forklift helps to ensure efficiency in managing manufacturing space and warehouse. This year the forklift market is expected to worth 6,900 million baht, growing 5-7%.
"In the long run, material handling business will continue to expand with supportive factors such as the development of the Eastern Economics Corridor or EEC which will spur private investments in and out of the country. This will encourage demands for logistics service, as well as warehouse management service, and it is also a good opportunity for our company," said Mr. Pratanwong.
Mr. Siam Kongpukdeesuk, Managing director of Siam Motors Industries Co., Ltd. said this year the company presents a highlighted product Unicarriers Forklift TX Series which is energy-saving and increases efficiency of transfer work with 1.25-2.0 tons lifting capacity, easier control feature, and with 3 specialties including silence during operation, great visibility and energy saving. The new series comes with ergonomic design to reduce pain during operation, freedom of speed control, long lifespan of traction battery and environmental friendly emission.
For 2018, the company plans to investment around 50 million baht including purchase of land for new office for future growth, construction of 2 new service centers in Udon Thani and Phet Kasem Road, and investment on software development to increase efficiency of transfer system in the warehouse. In addition, the company has the policy to acquire ISO9001 for standardized management to procure quality of goods and services, as well as operational efficiency.
For the plan on service expansion, the company places great importance on drivers' training and certification from the Department of Skills Development in response to requirements from customers. Meanwhile, the company also plans to uplift the quality of after sales services such as provision of branded spare parts and accessories; rental deals of new and used forklifts, forklifts with drivers, and warehouse facilities; fleet management; and control training for crane and forklift.
Total revenue target for 2018 is set at 1,260 million baht, an increase of 5% y-o-y from 2017 which stood at 1,200 million baht. The revenue structure currently comes from sales and rental at 40% and services at 60%.
Mr. Yo Miyatake, Director of UniCarriers Asia Co., Ltd. said UniCarriers Asia presently covers supervision in 9 Asian countries and foresee the growth potential in the Thai industrial sector in terms of being a strategic location and manufacturing hub of the region, making Thailand the largest forklift market in Southeast Asia which projects demands for forklifts of more than 10,000 units per year, growing on average of 5-7%.
"Thailand has been a leading manufacturing hub and logistics in Asia, with strong public policy to steer the EEC which is continually adding value to the forklift market in Thailand. Moreover, we have such determined partner as Siam Motors Industries Co., Ltd. which possesses a variety of nationwide customer bases in the industrial sector. We are confident that the sales revenue in Thailand will take the helm in Southeast Asia in the long run," said Mr. Yo Miyatake.