Message from the Chairman
❝ In 2018, as Srithai Superware PCL. celebrated its 55th anniversary, we were able to restructure and re-strategize promptly and without hesitation in order to successfully meet both internal and external challenges. Srithai realigned its plans to mitigate risk and enhance internal strengths in order to achieve good performance in the long term. ❞
Our industrial plastic products showed a distinctive increase in sales revenue due to the ongoing economic expansion in Vietnam. Our continued investment and expansion into Vietnam will result in an even better performance that will help offset reduced sales domestically due to the weakened Thai economy. Moreover, as rising prices of raw material and heightened competition started to affect our profit margin, Srithai management immediately introduced effective measures, timely management strategies and the slowing down of investment not urgently needed. In combination with successful price negotiation with our customers, the second half of last year showed increased profits, most significantly with our industrial plastics products, and the Beverage Packaging Products Division in particular.
Sales of our melamine tableware products slowed down due to sluggish domestic and global markets. In Thailand, the high household debt, the struggling agricultural sector and the strong Thai baht has weakened our purchasing power and hindered our export sales. Fortunately, the good performance of our production bases in Vietnam and India have compensated for this decline. In the future, we can expect improved profitability as these two markets have more time to develop and expand. Likewise, the trade war between the USA and China has resulted in major US companies shifting their orders to Srithai Group
in order to bypass the US-China trade dispute. This helped to compensate for the slow melamine tableware sales in Middle Eastern countries due to their weakened economies.
In another move towards optimization, Srithai merged its networking business and direct sales business to streamline its performance and defeat high costs. Furthermore, due to the recovery of the automotive industry and the resultant increasing sales of automobiles, the moulds division has benefited positively.
Amid digital disruption and constant and brisk emergence of new technology, Srithai will grab this opportunity to strategically improve our operations to increase competitiveness and competency by focusing on the re-skilling of our human resources at every level. The investment in our HR will help train them in the latest technological advances and prepare them for further expansion into domestic and overseas markets. In conclusion, despite marketing challenges with our industrial products, melamine products, and moulds, Srithai took swift action to reassess, restructure and upgrade accordingly. Srithai has continued to put forth its best efforts to promote business transparency and traceability for the future benefit of all stakeholders and our long-term sustainable growth. Srithai will also continue to strictly adhere to business ethics, good corporate governance, and social and environmental responsibility.
I wish to thank our shareholders, board of directors, business partners, executives and all employees for their high confidence in Srithai Group and for their continued support. I am confident that the future of Srithai Group will become even more promising.
Mr. Sanan Angubolkul
Chairman of the Board & President