Condom giant sees glowing AEC futur

Condom giant sees glowing AEC future
• Published: 23 Sep 2013 at 00.00
• Newspaper section: Business
CHON BURI : Thai Nippon Rubber Industry (TNR), one of the world's largest condom producers, expects the Asean Economic Community (AEC) to help it double its turnover in five years.
Workers sort condoms at TNR’s factory in Si Racha, Chon Buri. NOP TEPHAVAL
But TNR is also seeking to expand its sales with new products and is eyeing the trend for glow-in-the-dark contraceptives as well as coffee-flavoured condoms.
Assisted by regional integration under the AEC, TNR is now aiming to increase its revenue by 15-20% a year, said managing director Amorn Dararattanaroj.
In 2013, TNC is targeting 2 billion baht in sales, up from 1.2 billion last year, he added.
Over the next few years, as the AEC cuts tariff barriers, TNR expects to lift its regional sales to 300 million baht from 150-200 million per year, said Pisut Chanwatarungkull, quality management system manager.
TNR is also keen to expand its markets with new technology and marketing approaches, he added.
Luminous condoms are a key trend, although TNR currently lacks the technology to produce them, he said.
But TNR can already make spiral condoms, popular in Japan, and will launch a spiral One Touch sheaf as early as October. In Latin America, the trend is coffee flavours, he added.
In addition, TNR is looking to win younger markets for its own One Touch brand, sold in Cambodia, Laos, Myanmar, Thailand and Vietnam, said Mr Pisut.
"Our ongoing efforts are aimed at lowering the age demography of customers," he said.
Consumers tend to stick with well-known brands regardless of cost, but One Touch is associated with a mature customer base, he said.
Within Asean, Indonesia is TNR's leading market, with sales of more than 100 million condoms each year.
But China ranks as the company's biggest global market, followed by Indonesia, Brazil, the US and Japan.
In Thailand, TNR holds a 25% share as the second-largest player in a 800-million-baht market.
With a move from Laem Chabang to its new factory in Si Racha in 2010, TNR's annual capacity now totals 2 billion pieces.
Under other companies' brands, TNR condoms are sold in 70 countries around the world.
As the company uses 4,000 tonnes of natural rubber each year, Mr Amorn sees a risk from government intervention in rubber prices.
"If the domestic price of natural rubber is more expensive than neighbouring countries then our export will lose competitiveness in the regional and international markets," he said.
The introduction of the 300-baht minimum wage has also prompted TNR to cut its workforce from 1,200 down to 900 and switch to automated packaging, he added.
TNR was set up in 1993 through a partnership between Thai and Japanese businesses but is now wholly Thai-owned.