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Italthai aims to double revenue

Under the plan, the group wants to deepen its presence in the immediate region with a focus on the so-called CLMV countries: Cambodia, Laos, Myanmar and Vietnam. For its construction-equipment and construction business operations, Laos and Myanmar, in particular, are recognised as key markets for expansion. The group has Asia more broadly in its sights with its hospitality business, especially in contracted hotel management.

The group is aiming for revenue of Bt17.2 billion this year, up 16 per cent from last year. Its five major business operations are: construction equipment managed by Italthai Industrial Co; construction business managed by Italthai Engineering Co; hospitality and lifestyle services operated by Onyx Hospitality Group; food and beverage operations managed by Italthai Hospitality Co; and a shopping mall for arts and crafts and antiques operated by The River City Bangkok.

Group chief executive officer Yuthachai Charanachitta said Italthai wanted to become a leading player in Asia, particularly in hospitality. For the CLMV countries, Italthai Industrial and Italthai Engineering would expand beyond the home market for their construction-equipment and construction operations, especially in Myanmar and Laos, he said.

“Under the road map, we plan to raise the overseas contribution to our annual revenue from only 10 per cent currently to about 25 per cent in the next five years,” he said.

Yuthachai said Italthai Group would this year invest about Bt3 billion, of which 90 per cent would be allocated to the expansion of its hospitality business, especially the development of two hotels in Pattaya and Phuket.

Peter Henley, president and CEO of Onyx Hospitality Group, said 42 hotels with 6,622 rooms were under the company’s ownership and management contracts. Half of these properties are in Thailand, with the rest in mainland China, Hong Kong, Sri Lanka, Qatar, Bangladesh and Maldives.

“We plan to increase the number of hotels owned and managed by the company to 99 by 2024, of which 70 per cent will be overseas. We plan to enter Malaysia, Laos and Vietnam this year, followed by Australia, Indonesia and India by 2019,” Henley said.

In some strategic locations, the company will seek to buy between 20 and 30 per cent of equity ownership in the hotels to secure the management contracts, he said.

Sakol Laosuwan, CEO of Italthai Engineering, said the company expected to raise its annual revenue from Bt1.3 billion five years ago to the Bt5.3 billion targeted for this year, with up to Bt6 billion projected for next year. The company expects to achieve Bt10 billion in annual revenue within five years.

“We have expanded our construction service, especially |for the setting-up of large-scale utilities and electric-power plants, into neighbouring |markets with potential, including the establishment of a registered company in Myanmar,” he said.

“Myanmar, for instance, is still lacking good infrastructure both in electricity and information technology. The country also requires construction contractors with high work standards.”

Source: The Nation

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