SET-listed carpet manufacturer TCM Corporation Plc (TCMC) is upbeat on its flooring business, expecting to increase its global market share from 15-20% in 2018 to 25-30% in 2021.
TCMC's flooring unit is part of three business units, including living and automotive carpets. The flooring unit accounts for 33% of total sales revenue with 6.71 billion baht in the first nine months, up by 40.5% from the same period last year.
Bill Palmer, co-chief executive for the flooring business, said the global market for flooring carpets is worth US$300-350 million (9.88-11.5 billion baht) in the hospitality sector. TCMC markets under the Royal Thai brand.
The global flooring market has some large competitors such as Brintons and Ulster from Britain, Shanhua Carpets and Haima Carpet from China, and Couristan, Oriental Weavers and Crossley from the US. Smaller manufacturers from China, South Africa and South Asia account for 30% of the global market.
Mr Palmer said TCMC will focus on two main markets -- the US and Hong Kong, Macau and Singapore -- which account 30% and 25% of TCMC's flooring unit sales, respectively.
TCMC wants to beef up the sales proportion in Europe and the Middle East, markets where TCMC has only 5% of total sales.
"We aim to increase our sales in every market and expand new distribution channels for major markets," he said.
"For our flooring unit, we will focus on the hospitality sector in each market, which has potential to grow because of global tourism expansion in aviation, yachts, high-end residences, boutique hotels, shopping malls, casinos and luxury hotels."
Mr Palmer said the US will impose an import tariff of 25% for many products from China, including carpets, from customs duties of 5-10% in the first quarter next year. TCMC expects to take this opportunity to increase its sales to the US market.
"China is a major competitor for TCMC and many orders will shift to Thailand from this trade war," he said.
"TCMC aims for gross profit to grow more than 7-10% per year from the flooring business."
Formerly known as Thailand Carpet Manufacturing Plc, TCMC was established in 1967 by the Srivikorn family as the first carpet manufacturer in Thailand. The company built its factory on 13 acres of land nearby Don Mueang airport.
TCMC has 15 subsidiaries and three business units that cover Bangkok, Pathum Thani, Ayutthaya, as well as Hong Kong and Britain overseas.
Last August, TCMC spent 3.15 billion baht to invest in the commercial carpet business, formerly part of Tai Ping Carpets International Ltd, which was listed on the Hong Kong Stock Exchange. Following the acquisition, TCMC aims to capture 25-27% of the global carpet market in the near future.
The company set an ambitious target to earn 10 billion baht in sales revenue this year.
Sales from the three business units tallied 7.63 billion baht in 2017, a 97% leap from the year before.
