Following the spin-off of construction giant Italian-Thai Development, Italthai Group, under the leadership of president Yuttachai Jonajit, plans to pursue four business lines and tap the Asian Economic Community (AEC) market.
The four core businesses are: distribution of construction machinery and equipment; engineering services for the four core businesses, including energy, electricity and factory systems; industrial services, property/real estate, equity stakes in hotels/hotel management; and restaurants and retail businesses, distribution of imported wine and other beverages, and high-end tea shops (TWG Tea) from Singapore.
Italthai Group’s target for this year is to achieve Bt12 billion-Bt13 billion in overall revenue, or the equivalent of at least 20-per-cent growth, with roughly equal contributions from the four core businesses, he said.
The construction-machinery business line generated Bt2.8 billion last year, and the target is Bt4.2 billion this year, in line with construction-sector growth.
The company expects to establish 20 service centres by 2015 in time for the AEC’s implementation.
The company targets 2013 revenue of Bt4 billion for engineering services, up from Bt1.7 billion last year. The current backlog of unrealised revenue exceeds Bt4.4 billion, with Bt4 billion to be realised this year.
Hotels and real estate represent a “rising star” business, for which Italthai Group sees bright prospects.
Through the establishment of the Onyx Hospitality Group, the company hopes to expand its chain-hotels management business, focusing on three- and four-star hotels, both locally and overseas.
Italthai aims to expand the revenue contribution of this business line from 20 per cent to 40 per cent in the next few years, as investments are for the long term, Yuttichai said.
The company sees good growth prospects for expanding the four-star Amari brand. Moreover, it has an equity stake in the Oriental Hotel in Bangkok, which is not under the Onyx Group.
Italthai aims to establish property and hotel businesses in 70 locations in Thailand, neighbouring countries and the Middle East within the next five years. After the four core businesses have expanded and achieved revenue targets, each must spin itself off and apply for a listing on the stock exchange, as Italian-Thai Development has done.
This should be done in the next two to three years, Yuttichai said.