Bangkok--2 Feb--Oasis Media
Four Pattana reorganizes its structure to cope with the home building market in 2009. The plan calls for the setting up of a new subsidiary and a residential market penetration in order to expand its channels.
Four Pattana reveals its strategy in 2009 today, which includes the setting up of a new Four Extra Build Co., Ltd. to expand its channel as well as to penetrate into residential segment under Bussaba brand in this coming March. It also discloses that home building market is less likely to be affected after the decrease of oil and construction material prices while the government will launch additional supporting measures. The company expects that the new subsidiary will help increase its sales by 20% to 600 MB in 2009.
Mr. Pramote Theerakul, the Managing Director of Four Pattana Co.,Ltd., reveals today that company will adjust its strategy in 2009 to cope with the economic slowdown. The change will focus mainly on product development, i.e. to upgrade both its design and construction standards, while maintaining its policy not to use outside contractors as in the past 28 years. Moreover, in 2009, the company will also add in two extra channels. One of them is the setting up of a new subsidiary to cater new targets, namely Four Extra Build Co., Ltd. to serve three specific groups of customers including those who have come up with their own designs, but still lack of a quality construction team; those who wish to construct their homes around Bangkok’s vicinities; and those who wish to construct quality buildings, e.g. home offices, service apartments, etc. with a maximum height of less than 15 meters.
Another is to officially launch its second residential project under Bussaba brand, after its successful launch of its first Chune-Ratchada project. The project, which will be located on Tiwanon Road, is a SDH project built on a 12 rai plot of land and will consist of 43 housing units with an average price of 3-4 MB. A mock-up is now ready for site visits and its official launch in March 2009.
“We really need some changes this year to cope with the current economic situation. As we see untapped opportunity in some market segments, we set up a new subsidiary. Four Extra Build will work differently from Four Pattana. They will use sub-contractors, but all quality controls will still be under Four Pattana team in order to achieve our standards, while we could enjoy the opportunity to expand our business into other provinces.” said Mr. Pramote.
Mr. Promote further adds that Four Pattana targets a total sale of 610 MB in 2009 or up 20% YoY from 491 MB in 2008. The additional sales will come mainly from the new subsidiary, i.e. Four Extra Build, which will contribute approximately 40 MB, and sales revenue from Bussaba residential project, which is expected to contribute another 60 MB, while all others remain unchanged waiting further evaluations.
Market analysis and evaluations indicates that the home building business is less likely to be affected in 2009 as most customers are cash rich and well managed financially, while interest rate cuts and construction price dives will also help reduce the burden. More importantly, it is expected that the market will respond to the government’s stimulus package launched in order to speed up liquidity circulation after 2Q09 onwards.
Four Pattana Group consists of 5 companies in 9 business segments, namely Four Pattana operating in 5 business segments, i.e. Premium Housing and Young Executives; Special Premium Design (10 MB or more); Four Pattana Landscape and Construction Materials (“Easy Trust” rustproof roof structure); and Bussaba residential project.
Four Develop House operates in less than 4 MB residential segment. Four Pattana Interior operates in interior business. Four Pattana Color Line operates in media design and production and Four Extra Built , which is the latest subsidiary operating in three business areas including home construction for customers’ own designs, home construction outside Bangkok and its vicinity, quality building construction, e.g. home office, service apartment and etc. whose height does not exceed 15 meters.
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Khun Chatchaval Teened / Saranyarat Suwannakham / Piyaporn Chumnien
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