BG Container Glass Plc (BGC), the SET-listed maker and distributor of glass containers, expects 2019 revenue to grow by 10%, driven by expansion in Asia and rising demand for packaging products.
Silparat: Saving on energy expense
Silparat Watthanakasetr, the managing director, said BGC plans to expand its business presence in Vietnam and India, where there is immense opportunity because of large populations and high purchasing power.
In 2019, BGC will increase exports to New Zealand, Australia and Europe.
"Our glass packaging products perform very well in overseas countries, thanks to high demand for food and beverage," Mr Silparat said. "The majority of growth in 2019 revenue will be from the overseas segment."
He said BGC budgeted 400 million baht for technology improvements at five production plants in 2019, aiming to improve production efficiency and reduce costs through methods such as energy efficiency.
"In January, we saved 3-4% on our energy costs," Mr Silparat said.
In addition, BGC is seeking to form a joint venture with business partners at home and overseas that are relevant to glass packaging products, trading business and raw material procurement in the future.
"The plan follows targets to grow in both organic and inorganic terms," Mr Silparat said. "We will emphasise merger and acquisition plans to keep our strength in this region."
BGC, a subsidiary of Bangkok Glass, makes five glass packaging products: beer bottles, drinking bottles for soft drinks, food bottles, pesticide bottles and medicine bottles.
BCG's plants are located in strategic provinces -- including Pathum Thani, Ayutthaya, Prachin Buri, Khon Kaen and Ratchaburi -- that facilitate sourcing of raw materials and logistics cost management. BGC has a production capacity of 3,495 tonnes a day from five manufacturing plants. The company bills itself as the largest maker of glass containers in both Thailand and Southeast Asia.
Bangkok Glass was incorporated in 1974 and granted promotional privileges by the Board of Investment. Boon Rawd Brewery become the largest shareholder of Bangkok Glass in 1981.
BGC posted 2018 revenue of 10.4 billion baht, down 7% from the year before, as consumption of glass packaging products for alcohol and liquids slumped domestically.
Export volume grew by 14% in 2018.
BGC posted a net profit for the period of 524 million baht, up 108% year-on-year despite declining in sales.
Mr Silparat said three factors improved 2018 profit: lower raw material prices, particularly for cullet; improved production efficiency; and lower fixed costs due to operations halting in Rayong since the end of 2017.
BGC shares closed yesterday on the Stock Exchange of Thailand at 12.20 baht, down 10 satang, in trade worth 41.6 million baht.
