Editorial Staff
Duni (Thailand) Co.,Ltd, will invest 300 million baht to increase the production capacity of Duni paper napkin at Thailand’s factory in Samut Prakarn during 2023-2024.
Pravit Techavijit, chief executive officer of Duni (Thailand) Co.,Ltd, the Thai-Swedish joint venture for Swedish premium napkin products, said that the company will divide its investment into two phases. In the first phase, it will spend 190 million baht this year to buy 5 rais plot in Samut Prakarn and 110 million baht will be used to install machine in 2024.
The production capacity of Duni paper napkin will increased to 8,000 tons per year in 2025, from 4,000 tons in 2022.
After expanding its production capacity, it will expand Duni paper napkin products to India, focusing on five major cities including Delhi, Mumbai, Hyderabad and others. It will also plan to expand Duni premium paper napkin to Japan, New Zealand and Australia.
“India is very attractive market because of population number. It is expected to have 3 million weddings per years,’’ Mr Pravit said
At present, the company has exported its paper napkin to Australia, New Zealand, Maldives, Chili, Mexico, Argentina and Asean countries excepting Malaysia.
In addition, it will launch “Duni Letto”, a new premium dining napkin brand with environmental friendly for HoReCa (Hotel, Restaurant and Catering) industry in Thailand and Asia.
Thailand is the third factory of Duni paper napkin in worldwide after Germany and Poland.
“Duni chose Thailand as its production base and commercial hub for Asian region because it is in the center of Asia. Thailand has attractive import tariff deals and Thai labor costs are comparatively low when compared to Europe,’’ Mr Pravit said
The food industry and the HoReCa market in Thailand are enormous. According to the National Statistical Office, there are 24,400 hotels nationwide, and 3,660 of those or 15% are four-starred hotel or higher.
Moreover, there are up to 32,300 restaurants for middle and upper market in Thailand. According to the data from Kasikorn Research Center, the value of the catering business will reach 850 million baht. This information helps justify the decision for market expansion and investment in Thailand.
Currently, 95% of Duni business in Thailand is via B2B. It will expand more products to retail channel aiming at B2C customers.
Duni Group, headquartered in Sweden, is aware of and continues to take action on the environment and sustainability urgency. Therefore, Duni products have been certified by many environmental and quality standards, emphasizing the sustainability and quality of the products and the brand’s priority on climate and environmental action.
The company plans to reduce net greenhouse gas emissions throughout the production process to zero, or achieve the Net Zero goal, in 2030. In 2023, the company has already accomplished its carbon reduction goal. The next goal in 2025 is to produce 100% biodegradable paper products and follow the FSC (Forest Stewardship Council) manufacturing regulations. All of these efforts are to ensure that when customers use Duni products, they contribute to reforestation efforts, forest conservation, and restoring balance to the world’s climate.
The company expects sales to increase to 420 million baht in 2023, up from last year of 400 million baht. With new investment and new market, it expects sales to reach one billion baht in 2026.
17 May 2023
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