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22.06.2010 | DKSH outperforms market with resilient business model and continues to make substantial investments in its key market Thailand – more than THB 1 billion earmarked for investment projects in 2010.
DKSH, the privately held Swiss Group, leader in the sector of Market Expansion Services with a focus on Asia, reported a strong performance in 2009 with a buoyant Net Sales increase of 4.8 percent to more than THB 280 billion. The result was in stark contrast to a worldwide drop in global trade of some 12 percent in a year which saw economies hit by a massive global recession. The company announced further investments of more than THB 1 billion in Thailand for 2010.
Bangkok, June 22, 2010 − At a specially convened Bangkok visit, DKSH Group President & CEO Dr. Joerg Wolle talked about the Group’s outstanding 2009 results and provided insight into the recent name change and investments in Thailand, while outlining DKSH’s future investment plans for the country.
“The highly gratifying results we have achieved in terms of showing a 4.8 percent increase in Net Sales in the very difficult economic conditions prevalent in 2009 also serve to demonstrate that we have been able to keep our promise to exploit opportunities that present themselves in times of economic crisis. Our solid financing and clearly defined growth strategy has also enabled us to grow organically and acquire a number of additional companies,” said Dr. Wolle.
“Asia remains the strongest growth driver for DKSH where intra-Asia business – the marketing and distribution of Asian products within other Asian markets – is becoming increasingly significant,” the Group President & CEO added.
DKSH attributes its success to a combination of offering dedicated services from sourcing, research and analysis, marketing, sales, distribution and logistics, to after-sales services through four specialized Business Units and broad diversification in terms of industries, regions, flows of goods, and value chains. Substantial investments in the expansion and improvement of its infrastructure mark the company out as the market leader.
In 2009, DKSH opened new distribution centers in Myanmar, Thailand, and Australia, all markets where it sees considerable potential in offering value-added services such as market entry consulting, market analysis, product registrations, repairs or applications training, to complement its traditional core activities of marketing, sales, distribution and logistics.
DKSH’s approach is to focus on doing what it does best and on further expanding in those markets and industries where it already holds a strong position. Thailand as the most significant market for DKSH therefore remains a core growth area for the future. “Despite a challenging political situation and some degree of economic turmoil, we continue to have great confidence in the Thai economy. Our four Business Units here in Thailand – Consumer Goods, Healthcare, Technology, and Performance Materials – support a total of 380 multinational and local suppliers and more than 100,000 customers, with our Annual Sales having increased double-digit year-on-year. In other words, DKSH Thailand is here to invest, grow, and develop successful business operations, including plans for further investments in all of those four Business Units,” said Dr. Wolle.
Worldwide, DKSH has completely reshaped the conventional model of traditional trading companies to ensure that it remains a valuable strategic partner for its business associates. Explained Dr. Joerg Wolle: “The name DKSH reflects our new positioning of being the world's number one in Market Expansion Services with focus on Asia, i.e. a distinctive new category of industry that has been created by DKSH.” The DKSH Group President & CEO also said that with its recent change of company name from Diethelm Ltd. to DKSH (Thailand) Ltd., effective January 1, 2010, DKSH Thailand is contributing to the ongoing establishment of a unified, global DKSH brand. “The DKSH brand implies that the individual country operations such as Thailand are able to leverage the global synergies available within the DKSH Group to constantly develop and improve their own service portfolios, thereby ultimately offering greater opportunities and value to our business partners,” explained Dr. Wolle.
DKSH announced that it has earmarked more than THB 1 billion for investment projects in Thailand. It is supporting its operations with a new THB 600 million office at Bang Chak and a recent acquisition of the Shell Distribution Company, a subsidiary of Shell Company of Thailand. This addition allows DKSH Thailand to penetrate the automotive industry, giving the company an even larger market share and opening up an entirely new trade channel for products and categories for suppliers. With the acquisition, DKSH is integrating Shell’s existing infrastructure of 30 depots around Thailand and 225 specialists and thereby significantly expanding its footprint and network in the country.
The company further announced its Business Unit Healthcare‘s investment of THB 75 million into a new contract manufacturing facility for pharmaceutical, confectionary, nutrition, and other products. Through the new facility, DKSH provides manufacturing services to Besins Healthcare, a Belgian pharmaceutical company for a hormonal medicine product, to be supplied to various countries in Asia Pacific and becoming the backup supplier for European and USA markets.
In addition, DKSH Thailand is also planning a new THB 300 million multiplex site for its Business Unit Technology consisting of showroom, application engineering center, distribution center, as well as maintenance and repair workshop to be located at Amphur Wangnoi, Ayutthaya province, with a footprint size of sqm 28,000. The new facility gives the Business Unit Technology the opportunity to expand the business and strengthens its position as market leader and efficient services provider for capital investment goods and analytical instruments in Thailand. These investments further underline DKSH’s commitment to Thailand as the country remains one of the key growth markets for the Group. Over the past three years, DKSH Thailand has already invested about THB 3 billion in establishing three distribution centers, two of which are located on Bang Na-Trat Road and the other at Bang Bo in Samut Prakan province. DKSH is today the leading Market Expansion Services Group in the country with some 218 branches and 10,000 Thai employees.
DKSH Thailand is DKSH Group's largest market, representing 40 percent of Total Group Sales of THB 280 billion worldwide last year. DKSH Thailand's sales this year are forecast to exceed THB 120 billion, a double-digit increase over 2009.
Worldwide, DKSH has enjoyed an impressive start to 2010 with first quarter results substantially higher than the 2009 level, showing an increase in Net Sales of 8 percent and an EBIT of 25 percent.
In March 2010, the former Swiss trading house Hagemeyer-Cosa Liebermann was acquired by the Group, enhancing the leadership position of DKSH as an independent services provider for the marketing, sales, and distribution of premium luxury and lifestyle goods throughout Asia.
The second acquisition is Chiao Tai Logistics, a leading logistics company in Taiwan specializing in consumer goods and which extends DKSH’s operations in Taiwan and allows the group to offer customers regional market expansion solutions in the Hong Kong, South China and Taiwan triangle.
Biolife, a leading vitamin and health supplements provider in Malaysia and the third DKSH acquisition in 2010, strengthens the Group’s own-brand activities in the Business Unit Healthcare. In total, these acquisitions increase the number of DKSH employees by some 700, while extending the Group’s distribution network and market coverage by more than 80 subsidiaries.
DKSH is the leading Market Expansion Services Group with its focus on Asia. As the term "Market Expansion Services" suggests, DKSH helps other companies and brands to grow their business in new or existing markets.
With 560 business locations in 35 countries – 20 of them in Europe and the Americas – and 22,000 specialized staff it is one of the top 20 Swiss companies ranked by sales and employees. In 2009, DKSH generated Annual Gross Revenues of CHF 8,600 billion.
The company offers any combination of sourcing, marketing, sales, distribution, and after-sales services. It provides business partners with expertise as well as on-the-ground logistics based on a comprehensive network of unique size and depth. Business activities are organized into four specialized Business Units that mirror DKSH fields of expertise: Consumer Goods, Healthcare, Performance Materials, and Technology.
Although DKSH is a Swiss company with headquarters in Zurich, it is deeply rooted in communities all across Asia Pacific. This is because the company looks back on a more than 140-year-long tradition of doing business in and with the region.
For further information please contact:
Chanpim Merakate
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Vivaldi Public Relations
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