The company, which makes Singha, Leo and Thai beers, is considering appropriate locations for its new plant, which will be on 150 rai of land and have an initial production capacity of about 400 million litres of beer per year.

"We are selecting locations based on good water supply and logistics," said president Sant Bhirombhakdi.

He said the new plant would support the company's strategy of boosting exports and expanding into more international markets.

The company's brewery at Pathum Thani now produces 400 million litres of beer per year, while its brewery in Khon Kaen produces 750 million litres of beer. Both facilities are now running at 80 per cent of production capacity and will be able to support increasing demand for beer both domestically and internationally for the next year and a half. Singha Corp controls 47 per cent of Thailand's beer market.

"We are now exporting our beer to 22 markets around the world. However, exports account for only 4 per cent of our total sales. We want to boost that to more than 10 per cent of sales in the next 18 months," said Sant, adding that the company was ready to expand its business abroad, particularly in Eastern European countries.

Sant said the company was negotiating partnership agreements with local investors in three major neighbouring Asian countries, in order to pave the way for the company's beers and non-alcoholic beverages into those markets.

"Under the partnership, we'll set up 50-50 joint ventures in specific markets to distribute and market our beers and other beverages. And those marketing and distribution subsidiaries will rely on our production facilities in Thailand to make and supply products for their markets," said Sant.

He said Singha Corp would earmark Bt1 billion to support future business expansion.

About half of that will be injected into the company's glass-manufacturing subsidiary, Bangkok Glass Co Ltd, which is setting up a new production facility. The rest of the money will go towards developing new products.

The company has set up a green-tea plantation on 500 rai in Chiang Rai. In addition to their use in ready-to-drink green tea, the leaves also serve as key ingredients in cosmetics and medicines.

"We're in the process of launching a new fibre drink to shake up the local market, where consumers are more concerned about their health. The ready-to-drink green-tea market is already mature, but this new drink will create new room in the market," said Sant.

He said the company would launch a new beverage every six months and that he hoped several of them would go on to be market leaders in their respective segments.

Singha Corp yesterday urged the Excise Department to raise the tax on white spirits to the same level as that imposed on other special blended spirits.

"We'd also like to encourage the authorities to introduce a new excise tax system calculated on alcohol content. That would be fair for all domestic players," said Sant.

He said that would also encourage fair and real competition in the market place and help local manufacturers prepare themselves for the stiff competition to be ushered in by the many free-trade agreements Thailand is signing.

"White-spirit manufacturers are now charged excise tax of 70 satang per 1 per cent of alcohol content, or only Bt17.50 per bottle. We would like to encourage the Excise Department to raise the excise tax on white spirits to the same level as the tax on blended spirits, or about Bt2.40 per 1 per cent of alcohol content," said Sant.

He said this would generate Bt20 billion in tax revenues.

Kwanchai Rungfapaisarn

The Nation