TWPC welcome the Year of Golden Tiger by embarking on a bioplastic business Assessing strong growth of tapioca starch Support sales to soar to 10 billion baht

BackJan 25, 2022

Thai Wah Public Company Limited (TWPC) unveils business plan for the new era, aims to launch bioplastic products under the brand of RosEco (Rose+Eco / circular economy) to add value to agricultural products in the first quarter of 2022 and expand investment in new start-up businesses with high growth potential as a support to the core business. CEO, "Ho Ren Hua" signaled that in the year 2022, the demand for tapioca starch continues to be strong and supports this year's sales to reach 10 billion baht.

Mr. Ho Ren Hua, Chief Executive Officer of TWPC, revealed the business plan that, in the first quarter of year 2022, the company is preparing to launch a new bioplastic product under the brand of RosEco (Rose+Eco / circular economy) to add value to agricultural products. The plan is in line with the company's direction, which focusing on creating value for agricultural products to enhance competitiveness, build food security for the country and the world, strengthen the economy and social values, and protecting environmental such as plastic waste and global warming. To cover the entire food supply chain, Thai Wah has expanded its investment to new start-up businesses or businesses with high growth potential to help enhance the growth of the core business through Thai Wah Ventures Co., Ltd. to create potential growth for the affiliated company to be stronger.

In addition, there are plans to implement innovations to reduce production costs, promote the management of resources production to be more sustainable, developing agricultural products to increase the proportion of income by focusing on the expansion of development of innovative High Value-Added products & services (HVA) and the expansion of food business. Also, increasing production capacity in the starch business such as modified cassava starch, sago, and food business such as noodles in accordance with the needs of customers and consumers around the world, for example, healthy food products and bio-plastic pellets.

The demand for tapioca starch products in 2022 is expected to remain high as the needs of usage in food products. Meanwhile, tapioca starch export prices continued to rise in a positive direction following the demand of tapioca starch of the leading markets like China. The quantity of cassava root in the 2021/22 production season is expected to be at 33.0 million tons, an increase of 4 percent from the same period last year from the rainfall that is favorable for cassava cultivation. The Company is confident that this year's performance will be able to grow double digits or reach 10 billion baht in sales.

The investment budget for this year is about 300-400 million baht, allocated to annual maintenance of 100-150 million baht, production improvement of 100 million baht, bioplastics business phase II of 70 million baht and investment in Thai Wah Ventures Co., Ltd., of 30-60 million baht.

"Even though the Company is not directly affected in terms of sales volume from the Omicron variant, it may be indirectly affected by the container shortage that have continued since 2021, resulting in shipping delays. The Company has prepared to cope with this problem by increasing the efficiency of transportation to ensure that the Company's products is delivered to the port on time and exported as much as possible according to customer requirements. This year's export trend is expected to grow from the previous year as well as expanding exports to other countries such as the United States and the European Union, in addition to China and Taiwan. The Company believes that the trend of cassava starch products and the demand in food products this year continues to grow strongly around the world," said Ho Ren Hua.

The Company continues to move forward by creating added value for products and services as well as expanding the customer base to other countries around the world through a strong technical sales team and an efficient online digital platform. Moreover, the Company increase efficiency since the planting process, production, to the consumer's hand through sustainable supply chain management strategies. The investment in companies with high growth potential such as bioplastics, healthy food with high fiber and protein or organic food, including Thai Wah Ventures, focusing on investing in four key areas that are in line with current business for business growth and future performance.