• Head Office
    PASO Tower 24th, Silom Road
    Suriyawongse, Bangrak,Bangkok
    Tel (02) 267-8222

  • Factory
    Hemaraj Chonburi Industrial Estate 358
    Bowin, Sriracha, Chonburi 20230
    Tel (038) 345 950

Revenue Structure


201720162015

Million Baht%Million Baht%Million Baht%
Turnover 
Hot-Rolled Coil (HRC)
Tempered Hot Rolled Coil

15,071
107

92.65% 0.66%

11,648
22

99.11% 0.18%

12,075
 185

98.14% 1.51%
Other Incomes   
Interest Income  
Inventory and Raw Materials  
Gain from Debt Restructuring  
Net foreign exchange again    
Other Incomes

9
24
734
311
9

0.06% 0.15% 4.51% 1.91% 0.06%

3
14
 8
 54
 5

0.03% 0.12% 0.07% 0.46% 0.04%

1
 26
 7
 0
 9

0.01% 0.21% 0.06% 0.00% 0.07%

Sales Volume of the Company during the past 3 years with the following details: 

(Unit: Ton)

Sales Volume  (Only for the Company)201720162015
Domestic Sales Volume  
- Related Companies  
- Other Groups
Total Sales in Domestic

29,362
782,751
812,113

6,520
 715,137
 721,657

16,428
 711,796
 728,224
Foreign Countries          -     315          -
Total812,113721,972728,224

Ratios of the domestic and foreign turnover per the total turnover of the hot-rolled coil of the company during the past 3 years with the following details:                                     

(Unit: Million Baht)

Sales Income201720162015
Income%Income%Income%
Domestic15,181100.02%11,669100.00%12,264100.03%
Foreign00.00%50.04%00.00%
Deduct: Trade Discount      (3)(0.02%)      (5)(0.04%)     (4)(0.03%)
Total15,178100.00%11,669100.00%12,260100.00%

Product Characteristics  The Company has operated the business as the manufacturer of hot-rolled steel plate and related products, which can be divided into the product line as follows:

  1. Hot Rolled Coil
  2. Tempered Hot Rolled coil
  3. Hot Rolled Pickled & Oiled Product 

These products are used in the related industries as follows:  

TypeUtilization
Hot Rolled CoilMechanical tube, electrical conduits, water pipe, construction, C-section, construction scaffold, electrical pole, gas cylinder, black steam pipe, product used in anti-corrosion from atmosphere and cold-rolled steel sheet. 
Tempered Hot Rolled CoilAgricultural tools, general construction and profile sheets.
Hot Rolled Pickled & Oiled ProductChassis, wheel, compressor, refrigerator frame, microwave frame. 

Marketing and CompetitionsExpanding Products Range  The Company is continuously looking at opportunities to develop and improve its products range to have more diverse range in terms of thickness of steel such as expanding from maximum normal thickness at 12.70 mm upto thickness of 25 mm in form of coil. Also developing special quality grades that the market still has to depend on import, such as steel quality for Cold-Rolling, gas cylinder, welding and high-tensile steel.  The Company has a plan to improve the strategy on product development as follows:

  1. To focus on products on demand of the market and of regular use. 
  2. To develop products to support the market not only for the general construction industry and Tube sector, but also for automobile and large construction industry, including the industries of household and electrical appliances. 
  3. To supply Hot-rolled steel Coils for production of cold-rolling and Galvanising steel.
  4. To develop product with special thickness in the form of coil which is in the niche and the upscale market. 

Pricing Strategies

  1. The Company sets the price that is suitable for the general steel grades to be able to compete with the competitors and still can maintain the market share.
  2. The Company improves the existing technology to help support low production cost to have the opportunity to enter new domestic and foreign markets.
  3. The Company can produce goods with difference from the competitors on the quality and grade, so it can set the sales price that is higher.
  4. The Company gives more information and confidence on the consumption of steel to the customer, including building good relations with the customers continuously. 

Target Customer Groups  The customer target groups of the Company can be divided into three groups as follows: 

  1. Steel Service Centre is the buyers of hot-rolled and cold-rolled steel to cut to sizes and in turn for sales to the users.
  2. Pipe Makers such as the steel pipe manufacturers for use in the pipe work, including production for export. 
  3. Direct Users such as the manufacturers of cold-rolled steel in the country, the manufacturers of auto parts and electrical appliances.  

Channels of Distribution For domestic sales the Company shall distribute its goods via the two channels as follows: 

  1. Direct Sales 

The Company has a plan to distribute directly for the customer group of the steel service center is the manufacturers of steel pipe, Cold-Rolled Steel producers, auto parts and electrical appliances, which expected to have the ratio of 60 percent of the total domestic turnover. 

  1. Sales Through the Wholesalers

For other groups of the customers, which are the small customers and have numerous numbers, the Company shall distribute through the wholesalers, which can make the Company to reduce the expense on hiring the salesmen and the expense on marketing activities. Moreover, it is to shift the risk on credit in this group of customers to the wholesalers to be responsible for it. The Company expects to sell through this channel at the approximate ratio of 40 percent of the domestic turnover.  Company proposes to export its products in the international market to maintain domestic price and supply balance, bench mark its quality with best producers in the world, help build Company’s profile globally. Marketing Strategies

  1. The Company’s customers are in various industries such as the pipe manufacturing, the domestic and foreign cold-rolled manufacturers, the steel service center, the auto industry, the large construction projects with the demand to use special quality steel.
  2. The Company has developed and improved the quality of it’s products all the time by investing in the tools for modernization to increase potential and quality improvement and reduce cost of the production. 
  3. The Company has sent the working team with capability and expertise on using steel in the various applications and give support on the knowledge on the steel with the customers in the various industries for safety and optimization on the use of steel suitably.
  4. The Company has succeeded very much in building confidence in the delivery of the goods to the customers punctually, so the customers can plan and manage the inventory suitably.
  5. The Company has given prioritization on the improvement and development of the goods and service of the Company regularly with a survey and listening to the opinion of the customers periodically, so the Company knows of the correct and suitable demand of the customers clearly.

Planning on the Production in the Business Operations 

Since the hot-rolled product of the Company seems to have similarity with the product of the major shareholders is G Steel PCL, but in reality the product of hot-rolled steel Coils has great diversity in terms of grade (quality class) and size. If consider on similarity or overlap of the products being manufactured by both Companies, it is necessary to consider the details in the three aspects as follows:

  1. Grade (quality class) according to the international standard and the tailor-made, which the plant of the Company and G Steel can produce hundreds of grade. 
  2. The widths produced by the plant of the Company and of G Steel ranging from 900 mm to 1,571 mm every 1 mm of different widths is the product that is the different altogether the total of 672 sizes.  
  3. The thicknesses or gauges produced by the Company and G Steel ranging from 1.00 mm to 25.00 mm, with each thickness of 0.05 mm is the unique product of the total thicknesses of 480 sizes. 

When the thickness and width of the product are multiplied shall derive of the product with altogether 268,800 different sizes. However, it does not consider the number of grades produced by hundreds of grades and not included the classification of the products as the basic or value-added products such as the skin-passed, pickled & oiled, etc. Thus, the actual production line has the different products that are not overlapped numerous numbers. Nevertheless, both companies have planned joint marketing to avoid and reduce the overlap of the products by the Company focuses on production of  hot-rolled steel with thin and wide  and the thicknesses between 1.20-1.95 mm (it is the product range with the specially thin size) and between 13.00 – 25.00 mm (which is the special thickness range). Due to suitability of the production and technology of the Company that can produce the thin sheet better, while the production of G Steel mostly puts emphasis on the goods with the thickness more than 2 mm, which is the benefit from the joint marketing planning. So both companies have better production efficiency and benefit from the economies of scale, including reducing the loss from the non-continuous production process that requires producing diverse goods.  In the future, the Company has planned on the development of the products for the galvanized and cold-rolled steel applications, which are value-added and the segment that has high growth and large import. The production line of the Company has been designed to produce such products. Thus, the overlap of the products may be reduced in future.