The International Engineering Plc (IEC), the SET-listed mobile phone distributor and engineering company, has diversified to renewable energy in search of better returns.
Mr Bhusana says IEC is creating new technology in the energy and IT sectors to add value to its products and services. PATTANAPONG HIRUNARD
It has earmarked 2.1 billion baht from now until the end of next year for the energy and information technology (IT) sectors, which are set to become its core businesses as it reduces its focus on mobiles.
New chairman Bhusana Premanode said he expects the contribution from the energy business will be as high as 80% of IEC's revenue in the next few years, with the rest coming from IT.
The company estimates revenue will increase by 80.6% 903 million baht next year as a result of the high growth of energy business.
"We're shifting away from engineering and mobiles towards the energy and IT sectors," said Mr Bhusana, who took the helm at IEC late last month.
IEC plans to raise registered capital of 2.1 billion baht in November through a rights offerings of 1.074 billion baht, private placement of 936 million and employee stock ownership of 90 million.
Mr Bhusana said the investment programmes will kick off this year including 1.5 billion baht for the energy sector, 300 million for the telecom sector, and 100 million for the IT sector.
In the energy sector, IEC is allocating 1.1 billion baht for acquiring licences for renewable and fossil energy, he said.
IEC is developing four renewable energy projects worth 400 million baht.
Three are solar farms in Chiang Mai, Lamphun and Tak provinces, while a community waste-to-energy project is being built in Songkhla's Hat Yai district. All will be operational in the second half of this year with combined capacity of 17.1 megawatts.
In the IT sector, IEC recently signed a contract with MCOT Plc, the state-owned broadcaster, to provide technology for digital TV, which is expected to be launched early next year.
IEC earlier announced a plan to drive its business with technology, as it has strong partnerships with researchers from state universities and Imperial College in London.
A recent achievement is equipment that enhances the efficiency of solar farms by 36.5% and technology for hardware and software maintenance.
"We're creating new technology in the energy and IT sectors that will add value to our products and services," said Mr Bhusana.
Shares of IEC closed unchanged yesterday on the SET at four satang in trade worth 12.7 million baht.
About the author
- Writer: Yuthana Praiwan
Position: Business Reporter