TFP Group, the decorative auto parts and accessories maker, expects flourishing sales over the next three years triggered by regional economic integration.
Established by Pornthep Kiatkongklai in 1985, the group aims to raise its Asean exports to 40% over the next three years from 5% now.
Some 70% of the group's revenue comes from exports, with the US and Europe making up a combined 70% of that portion.
Over the next three years, sales from the US and the EU are projected to drop to 30%, with domestic sales static.
TFP Group comprises five companies _ TFP Industrial, TFP Factory, Fine Inter Trade Co, TFP USA Inc and TFP Automotive Australia Pty Ltd.
The group reported sales last year of 900 million baht, with the figure projected to drop to 800 million this year due to the strong baht and weak demand in US and European markets.
Virat Kiatkongklai, the managing director of TFP Industrial, which contributes half the group's annual revenue, said given the foreign exchange fluctuations, the group is exposed to additional financial costs in hedging.
He said besides operations in the US and Australia, the group is seeking partners in Indonesia, Malaysia and the Philippines.
Moreover, the group plans to spend 20-30 million baht for new machinery at its plastics plant in Nakhon Pathom province to increase monthly production capacity by 30% from 200,000 pieces now.
TFP makes car accessories for passenger cars, pick-up trucks and motorcycles. Its customers include Honda, Toyota, Mitsubishi, Nissan, Ford, Mazda, Chevrolet, Isuzu, Hino, Yamaha and Suzuki.
About the author
- Writer: Piyachart Maikaew
Position: Business Reporter