Saha Group Chairman Boonsithi Chokwatana

Starting as a small grocery store called Hiap Seng Chiang in 1942, Saha Pathanapibul has expanded into a huge conglomerate that produces and distributes, just to name a few, agricultural goods, cosmetics, food and beverages, household and personal care products, and textiles across the ASEAN region.

Chairman Boonsithi Chokwatana, a second-generation descendant of the company’s founder, spent the first six years of his early career in Japan sourcing products for his family’s stores back in Thailand. That phase marked the start of a relationship with Japanese companies that has only grown stronger over the years. In the past 40 years, the Saha Group has formed partnerships with Japanese giants such as Meiji, Nissin, Lotte, Shiseido, Wacoal Corp. and Lion Corp.

A partnership with just the right fit

Lion Corp. Managing Director Boonyarith Mahamontri

Thai Wacoal Public Co., a joint venture between Wacoal Japan and the Saha Group that goes back 35 years, has remained a very successful endeavor. It was the first company to manufacture ladies lingerie on an industrial scale in Thailand.

President Manu Leelanuwatana pointed out the company has shifted its focus from volume to value and concentrates on markets with better prospective returns in line with its goal to improve its product.

With four production facilities in the country with over 6,000 employees and 10,000 sewing machines, Thai Wacoal has made joint investments with world-leading manufacturers such as Asahi Kasei Fiber Corp. (Thai Asahi Kasei Spandex) to produce raw materials for lingerie.

‘‘We have been able to achieve double-digit growth in the past few years and I expect our group to have a minimum of 7 percent growth next year. We are looking at expanding in the Mekong area for manufacturing and distribution,’’ an optimistic Chokwatana says.

The company’s ability to keep up with the ever-changing business environment is perhaps attributed to the family’s work ethic, which is characterized by flexibility, courteousness, consistency, solid teamwork, unity and order.

Chokwatana feels a strong sense of responsibility for Thailand and values his company’s relationship with Japan. In helping deepen the relationship between the two countries, he has set up a language school in conjunction with Waseda University and brought the Bunka Fashion College to the country.

Aiming for the top shelf

As stakes are raised in the battle of brands, Thai-Japanese joint venture Lion Corp. has refined its marketing strategy as customer habits change, standards of living improve and technology continues developing.

Managing Director Boonyarith Mahamontri says Lion Corp., in line with a ‘‘technology for health’’ mission, will develop products that provide extra benefits for consumers and will pursue marketing activities for better product placement on store shelves.

‘‘We have to be more active directly with consumers because we can no longer rely on customer loyalty. Some 60 percent of consumers change their minds while shopping,’’ Mahamontri says.

‘‘Quality of life is constantly improving and the population is growing. Focus has shifted to personal needs. Higher incomes and smaller families mean that they take better care of themselves. They expect better health conditions and products, and we can provide that,’’ he adds.

Lion Corp. has 12 brands under five product categories that are all produced and marketed locally: detergent & fabric care, home care or better living, oralcare, skin care and baby care. Its most popular brands are Salz toothpaste and Essence liquid detergent.

The success of the growth plan looks certain as Mahamontri knows the company very well (He has worked with Lion Corp. since its establishment in 1967) and enjoys the support of the two partner companies — Lion Fat and Oil Co. of Japan and Saha Pathanapibul Public Co. of Thailand.

Charting Lion Corp.’s long-term growth, Mahamontri is planning an expansion of its export business and diversifying its business. Its export markets, which account for 10 percent of turnover, are Japan, Hong Kong, China, United States and ASEAN (the Association of Southeast Asian Nations).

‘‘To strengthen our business, we have invested in five upstream industries: Well Pack Innovation (plastic containers), Eastern Silicate (production of sodium silicate), Thai Silicate Chemical (a jointventure with Mizusawa Co. that produces Zeolite) and Likitomi Thailand (manufacturing of corrugated boxes). We have plans to expand into the over-the-counter (OTC) business by next year,’’ he says.

www.sahapat.co.th; www.wacoal.co.th; www.lion.co.th