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   BUSINESS NEWS

HEADLINES [click on headline to view story]:
Grant Thornton sets up office on the Eastern Seaboard

Independent Mercedes importers fight back

Kodak appoints Thai boss to handle Asean market

Japanese Giant loves Thai Chillis

GSF has new Adidas Fall Collection

Hopewell asks Baht 20 billion in compensation

Eastern city TV Cable operators unite against UBC

DiStar Electric set to export Thai brand DVD players

Grant Thornton sets up office on the Eastern Seaboard

International accounting practice Grant Thornton is the first of the “big” firms to open a fully resourced office on the Eastern Seaboard.

Grant Thornton, which established in Bangkok in 1992, has opened a new office in the ESIE Plaza Building on the Eastern Seaboard Industrial Estate.

The office, which already has an established clientele including the neighboring General Motors, will provide general accounting, payroll management, audit and financial advisory services.

Grant Thornton Managing Partner, Clayton Hebbard said “we have firm foundations of business in the Eastern Seaboard and the opening of this office will ensure that we are able to provide a level of service that cannot be compared with visiting consultants based in Bangkok. Actually having a fully operational office will give a first hand experience of the working environment in the area and how we can support our clients in the most cost efficient and practical way possible”.

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Independent Mercedes importers fight back

The SEC Group has planned to launch its own imported C Class Mercedes cars very shortly after an official launch by DaimlerChrysler (Thailand) (DCT) this July 8th.

Sompong Vittayarangsan, managing director of SEC said he believed there were still customers who want a better and faster service. Customers looking for Mercedes cars in the grey market do hope to have more options.

SEC have sold more S Class Mercedes cars than DCT have done after the Bangkok International motor show earlier this year when the two companies launched the cars to the market at the same time, said Mr Sompong.

DCT recently announced that Mercedes cars bought from unauthorized dealers were not welcome to its service centres as an effort to curb sales in the grey market.

The Dido Group, another independent importer plans to launch the new right-hand drive C Class Mercedes in October; KVA Auto Center, another Benz importer, said DCT measures will not affect their sales of Mercedes cars either.

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Kodak appoints Thai boss to handle Asean market

US Eastman Kodak this month appointed ML Anavach Srithawat to take care of film marketing in Thailand, Malaysia, Singapore and the Philippines in a plan to map out sales strategies in each of the Asean countries, and to reduce smuggled films sold in the grey markets.

ML Anavach said he was also appointed to oversee sales strategy, sales operation, marketing and logistic supplies in each of the four countries. The new job was also to negotiate with dealers and Kodak Express labs to buy colour films directly from Kodak authorized distributors. The Thai government had lost Baht 30 million each year in the past several years as million rolls of films were smuggled in and sold through grey market.

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Japanese Giant loves Thai Chillis

The largest producer of chilli sauce in Japan, Fuji Foods Corporation, is looking for a huge supply of red chilli in Thailand as demand was rising. The company would buy at least 1,000 tons of red chilli for immediate need, said Nevin Chidchob, a deputy minister of agriculture and agricultural cooperatives.

Negotiations have been under way between the ministry and Fuji Foods Corp to work out details in purchasing, as imports from Thailand would increase every year, said the minister. The Japanese orders would make it possible to guarantee the price of red chilli for farmers.

Fuji Foods Corp would import up to 10,000 tons of red chilli each year as demand was expected to increase 10-20 folds. Thai imports would help the company in cost saving as prices of Japanese-grown chilli were highly unstable, as well as expensive.

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GSF has new Addidas Fall Collection

The German Sport & Fashion Company Limited (GSF), the exclusive franchise partner of Adidas in Thailand presented the new Adidas Fall/Winter 2000 collection in July 2000. Over 500 new products out of the product range of Training, Soccer, Fitness, Aerobic, Basketball, Adventure, Lifestyle, Kid’s Collection and Swimwear are available in all 23 GSF shops in Thailand. The prices are up to 50% cheaper than in Europe and the USA. GSF Adidas will open 2 new outlets in Phuket City and Bangkok in July this year.

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Hopewell asks Baht 20 billion in compensation

Hopewell or hopeless?

Hopewell (Thailand), the former contractor to construct and operate the skyway and elevated railroad project for the State Railway of Thailand, had notified SRT of losses it suffered after the contract was terminated last year, and the losses must be compensated, they claim.

SRT sources said Hopewell’s latest move was a hopeless one, and was viewed as a ploy by the company to have a chance to participate in a new road and railway project.

SRT sent the notification to office of the Attorney General which would look after the case. Hopewell said in the letter of notification that it had done nothing wrong when the contract was terminated. Hopewell had threatened to sue SRT for Baht 100 billion to cover damage, and SRT vowed to strike back with Baht 120 billion in compensation for losses caused by project delays.

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Eastern city TV Cable operators unite against UBC

Local operators of cable TV in Chantaburi have united to compete with Universal Broadcasting Corporation which broadcasts from Bangkok. Direk Supavivat, chairman of Chantaburi Cable TV Co (CTV) said other operators had been in talks for possible mergers after years of fierce competition for market stakes.

CTV pioneered the course a couple of years ago when it took control over CTC, a smaller rivalling cable TV network in Chantaburi. The two companies earlier spent millions to develop the service. CTV also spent Baht 15 million to upgrade the service in Chonburi in 1999

CTV coverage in Chonburi was also expanded from 5-kilometers to a 10-kilometer radius as competition with Bangkok’s UBC became intense. The network already controls 80% of the local market. PTV, an operator in Sri Racha, said the company will not buy programs from UBC because of high costs.

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DiStar Electric set to export Thai brand DVD players

Local brand producer of electronic consuming products, DiStar Electric Corp Plc has planned to increase sales of its high quality, multifunctional DVD players, after the product was well accepted in the local market. Vice President, Taveesak Kriengkraikiat, said the company was ready to get ahead with digital products and the production base was already established in Thailand. DDS-11K models are equal to those Japanese and Korean-made DVD players in term of quality, said Mr Taveesak. The edge was that DiStar products were originally a Thai brand name and price was about 10% lower, he said.

DDS-111K also has the capability to play super VCD, VCD, DVCD and MP 3 recorded discs, and was able to play DVD software from all zones.

About 30,000 units of all DVD players are expected to be sold in the local market this year, and prices are much lower as producers started production lines in Thailand.

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Updated by Chinnaporn Sangwanlek, assisted by Boonsiri Suansuk.