SET-listed Delta Electronics Thailand, a maker and distributor of power management solutions and electronics components, has announced its five-year business plan (2019-23), focused on the trends of industrial automation, data centres, electric vehicles (EVs), renewable energy and energy storage systems.
"Delta's prominence and diverse interests have allowed it to help define the curve of technological progress in Thailand, as it shifts priorities to solutions that meet the demands of the five trends," said president Hsieh Shen-yen.
"We had agile adaption within Delta to put resources into emerging technology sectors that will make the most impact."
Delta operates three core business segments -- power electronics, automation and infrastructure -- with the five new trends taking place in the automation and infrastructure units.
Boonsak Chiempricha, Delta's independent director, said automation and infrastructure contributed only 13% of the company's revenue in 2017, with power electronics making up the majority.
Last year the company posted revenue of 50.33 billion baht, up 5.6%, marking an all-time performance high in 29 years of operating the business locally. But net profit fell by 10.6% to 4.93 billion baht.
But the automation and infrastructure units are set to reach 30% of the company's revenue by 2021, driven by the five overarching trends.
Mr Boonsak said Delta will keep its investment both local and overseas operations and it sets aside an annual budget of US$40-50 million (1.29-1.61 billion baht) to improve its production and adopt smart manufacturing at every plant.
Founded in 1988, Delta operates in four regions -- Asia, Oceania, Europe and North America -- through 31 subsidiaries.
"During the five-year priority outlook, Delta will focus on its operations in India because the country will be the next potential market after China," said Mr Boonsak.
"Delta's R&D unit in Bangalore will begin operations around the fourth quarter of 2018 and the plant in Krishnagiri in the first quarter of 2020."
The new operations in India are together worth $60.3 million.
Mr Boonsak said Delta will seek other merger and acquisition deals in the future in a bid to create five-year business strength in local and overseas markets.
