Dubai-based Contractor Takes Stake in Tai Ping Par
Bangkok, Thailand, January 24, 2007--Depa United Group, the world's fifth-largest interior contracting company, has paid 82 million baht for a 20% shareholding in Thailand Carpet Manufacturing Plc, the maker of Tai Ping and Royal Thai carpets. Tai Ping in Thailand has no association with Tai Ping Carpets Limited of Hong Kong.
Under a new business strategy developed two years ago, instead of building new factories, the United Arab Emirates-based Depa is seeking strategic partners worldwide who can supply decorative elements for its interior works, chief executive Mohannad Sweid said yesterday in Bangkok.
Qualified strategic partners are companies that excel in terms of product quality and management, according to Mr Sweid. ''TCMC is on top of the list when we look for business partners in Thailand.''
The company is seeking more partnerships with other Asian suppliers of decorative items, especially wooden ware, as well as lighting, fabrics and furniture.
Mr Sweid said Depa had the equivalent of 3.7 billion baht budgeted for acquisitions this year.
Depa acquired the furniture maker Dragoni International Llc in November to expand its services by providing full turnkey solutions to its clients.
Charlie Jangvijitkul, managing director of SET-listed TCMC, said Depa Interior, a unit of Depa United Group, acquired 20% of TCMC in November last year through a big-lot transaction on the Stock Exchange of Thailand.
Mr Charlie said Depa had no plan to interfere with the management of TCMC after the acquisition although Mr Sweid now sits on TCMC's board of directors.
Through the new partnership, TCMC hopes to expand its market to the Middle East, the stronghold of Depa for three decades, while Depa has secured a supplier of high-quality carpet, he said.
Currently, TCMC is bidding for a handful of Depa projects worth around 37 million baht.
Mr Chalie said TCMC aimed to increase its production capacity of Axminster carpet to 420,000 square metres this year from 240,000 square meters at present. As well, production capacity for hand-tufted carpet would rise by 10%. The total budget for the capacity expansion is 200 million baht.
The carpet manufacturer expected revenue this year to grow to one billion baht from 600 million last year, said chairman Chalermbhand Srivikorn.
TCMC plans to increase its revenue from exports to 65% over the next two years from 50% at present. All accumulated losses worth 400 million baht are also expected to be wiped out by 2010.
Shares of TCMC closed yesterday on the Stock Exchange of Thailand at 9.10 baht, up 15 satang, in trade worth 32 million baht.
