TNR, a manufacturer and seller of natural-rubber latex condoms and related products, announced after the first trading day of its stock on the SET on 29 November its plan to enhance profit margins by marketing Onetouch-branded condoms in new markets, especially in Asia and Africa, and exploiting its advantages as Thailand’s largest and the world’s major condom manufacturer, with a combined installed production capacity of 1,959 million pieces per year. The company’s management confirmed their ambition for leadership in the Thai and CLMV condom markets.
Mr. Amorn Dararattanaroj, Chief Executive Officer of Thai Nippon Rubber Industry Plc (TNR), revealed that, after the enthusiastically welcomed initial public offering of 75 million of the company's shares (par value at THB 1 each) to institutional and retail investors at THB 16 per share during 21-23 November, the shares have become tradable on the Stock Exchange of Thailand (SET) on its first trading day of 29 November, with a ticker symbol "TNR".
With total installed capacity of 1,959 million pieces per year, TNR is considered Thailand's largest condom manufacturer and among the world's largest. TNR has two production plants, one of which is located in Laem Chabung Industrial Estate with installed capacity of 426 million pieces per year and the other in Pinthong Industrial Estate (Chon Buri) with installed capacity of 1,533 million pieces per year. It has three core business segments: 1) Manufacture and sell condoms under the trademark “Onetouch” to the domestic and international markets, including the CLMV markets (i.e. Cambodia, Laos, Myanmar and Vietnam), Egypt, etc., through distributors and dealers;
2) Manufacture of condoms and lubricants as an OEM manufacturer for private companies and Non-Governmental Organisations (NGOs) in Thailand and more than 100 other countries in Asia, Europe, Africa, America, Australia and the Middle East, including the exclusive manufacture of “Playboy” condoms for United Medical Devices’s global market and the supply of the same as the sole distributor in Thailand; and 3) Tender for contracts to supply high quality products that are compliant to bidding requirements for distribution by governmental and Non-Governmental Organisations (NGOs) in Thailand and aboard, in order to increase the volume and reduce the unit cost of production of condoms.
The CEO added that, after raising capital in the stock market, TNR set the target to become the leader in own brand manufacture under the trademark “OnetouchTM” in Thailand and CLMV region. This strategy will increase its profit margins in the future. For Thailand, TNR set the target to raise the market share of OnetouchTM from the current level of 20.6% (September 2014 - August 2015) to 35% by 2020. The company will ensure its products are distributed countrywide through both modern trade and traditional trade channels, e.g. retailers, drugstores, etc. It will also conduct public relations campaigns and marketing activities to enhance brand awareness. For the CLMV markets, it will increase the number of distributors/dealers with large retail networks to ensure the products will reach the hands of all target customers. And it will introduce Onetouch products to new markets with high growth potential, especially in Asia and Africa.
During 2013-2015, TNR posted continuous growths in sales revenue from THB 1,053.2 million, THB 1,182.4 million and THB 1,302.2 million, and in net profit from THB 96.5 million, THB 108.6 million to THB 234 million. For the first nine months of 2016, it posted a sales revenue figure of THB 934.2 million and a net profit figure of THB 158.1 million.
"We are confident in our strong fundamentals. We not only have expertise in condom production and a large production capacity, but also place great importance on research and development of innovative products to increase product variety. In June 2016, we introduced Onetouch 003 as its thinnest condom, with only 0.03 mm to 0.038 mm in thickness, to respond to demand from middle- to high-income consumers aged 18 to 45 who prefer extra thin condoms with reasonable prices. This launch was a big success,” said he.
Mr. Manpong Senanarong, Managing Director of Kasikorn Securities Plc, as Financial Advisor and Lead Underwriter, said that the condom market's growth momentum in terms of volume and value will likely be sustained, given condom's effectiveness in prevention of sexually transmitted diseases and in birth control, and the condom industry is considered high barriers to entry by potential new players, especially from the fact that production of condoms, which are categorised as medical device, is controlled by stringent production standards. For example, most public- and private-sector tender requirements include a requirement for a tested useful product life of about five years.
TNR is recognised over the past 22 years for quality of its natural-rubber-latex condoms and related products. Both of its plants are certified for ISO9001, ISO13485, US FDA and other local and international standards, which allow it to manufacture and sell condoms to customers in more than 100 countries worldwide.