Starmark expands for exports
Written by changthai11 on Tuesday, September 23rd, 2008
Starmark expands for exports
KANANA KATHARANGSIPORN
The kitchen fittings manufacturer Starmark Co Ltd is doubling its factory space to support sales growth and to enable the company to start exporting within two years, said managing director Nantana Srisakulpinyo. She said the company was investing 60 million baht to expand its current factory space of 20,000 square metres _ 80% of which is used _ to 40,000 sq m by the end of the year.
The expansion should increase full production capacity from 1,200 sets a month to 2,500 sets. It will also enable exporting for residential projects overseas.
”Kitchen fittings demand is growing each year in line with residential demand,” said Ms Nantana.”Condominiums are a high-growth segment and this trend will continue in the next two years as we are getting orders from condominium projects for delivery by 2010.”
Currently, 40% of sales are from retail customers and 60% from residential projects. Of total sales for residential projects, 60% are for condominiums and 40% for houses.
During the first eight months of the year, the company sold 20,000 sets priced from 30,000 to 150,000 baht and its total revenue grew by 10%. Sales growth of 15% is forecast by the end of the year.
Ms Nantana added that the company was considering increasing prices early next year. Since the beginning of the year, while costs have increased by more than 30%, due to unfavourable economic sentiment the company has not altered its pricing.
”Bidding in residential projects was more about details and some projects reduced budgets,” she said.
”We will not increase prices until the end of the year. Instead we are controlling our internal costs by good management of logistics and production.”
She added that this year’s trend in kitchen furniture was for neutral tones and neutral patterns, combined with more metal and stainless materials.
The company plans to have a total of 45 branches nationwide by the end of the year. To stimulate sales during the rest of the year, it is planning to spend 20 million baht and to hold a half-price campaign in November and December.
