SNatur pursues opportunity in Laos

SNatur pursues opportunity in Laos

Direct-sales firm also active in Burma

SNatur, a direct-sales subsidiary of Srithai Superware Plc, is setting a joint venture to capture opportunities in Laos.

Bancha Haemintakun, chief operating officer of SNatur, said the new venture will have registered capital or 3-5 million baht, 80% held by Srithai, the world's largest melamine producer. The Laotian partner, Chanthachone Vongsay, an executive with Beer Lao, will hold the rest.
SNatur will manage the venture, which is expected to start operating in October.
Though Laos has a population of only 7 million, it is attractive for Thai businesses because Lao people prefer Thai-made products over those from other countries. Currently only one other Thai direct-sales firm is present in the country.
Laos is the second country SNatur has entered after Burma, where it began operating in February.
"Consumer response in Burma has been better than expected. Monthly sales there are expected to reach 10 million baht in the next one or two months," Mr Bancha said.
The company also plans to enter Cambodia late this year, followed by Vietnam, Indonesia and India next year.
Mr Bancha said that Srithai's founder and president, Sanan Angubolkul, had made it a policy to pursue the opportunities that are emerging in the region as the formation of the Asean Economic Community approaches in 2015.
Yesterday, SNatur signed a business agreement with BioLab, one of Thailand's three largest medicine and supplement manufacturers, to produce food supplements for it.
"As BioLab is accredited with EU GMP [good manufacturing practices under the Pharmaceutical Inspection Co-operation Scheme] for the European Union, it will increase our potential to penetrate the food supplement market in Asean," said Mr Bancha.
Apart from BioLab, the company is seeking other business alliances to develop and manufacture innovative products, which would strengthen SNatur's brand recognition among both Thai and foreign customers.
The company will invest 300 million baht in total to expand its business domestically and internationally, including 10 million to open a branch in Udon Thani, supporting future growth in Laos and northeastern Thailand.
SNatur expects sales of 400 million baht this year, rising to between 520 million and 560 million next year before reaching 2 billion baht within five years.