Kuma preps factory to support growth

Jul 28, 2023

PUBLISHED : 2 Aug 2023 at 04:00

NEWSPAPER SECTION: Business

WRITER: Pitsinee Jitpleecheep

Kuma (Thailand) Co, the marketer and manufacturer of Kuma tissue paper, is conducting a feasibility study to set up its own factory over the next five years to support future expansion.

Komkrit Kajornweeraphan, the managing director, said the new factory would be built to produce its new lines of consumer goods such as liquid cleansing products and other hygiene products.

"Demand for hygiene products is expected to thrive, driven by the pandemic," he said. Nevertheless, the investment budget for the new factory has yet to be disclosed.

According to Mr Komkrit, the company is looking forward to extending its product portfolio to other fast-moving consumer goods items to reduce the risk of relying too heavily on its tissue paper-based products, which now represents a red ocean market.

"We want to be an alternative brand choice for consumers. We see a huge opportunity for liquid cleansing products because they are used on a daily basis," he said.

Kuma was established in 2016 to market wet tissue paper in Thailand. Since then, it has expanded its offerings to include various tissue paper products catering to both people and pets. The company currently offers two distinct tissue brands: Kuma, targeted at the premium segment, and Lalabear, catering to the medium to low market segment.

At present, Kuma boasts a monthly production capacity of roughly 9 million tissue paper pieces. Notably, 70% of this output is sourced from an original equipment manufacturer (OEM) based in China. Another 20% and 10% of the total production, respectively, are obtained from OEMs in Indonesia and Thailand.

"Kuma tissue was very successful during the pandemic. Our sales increased from 229 million baht in 2020 to 800 million baht and 1.2 billion baht in 2021 and 2022," he said.

He also attributed the firm's success to a strong distribution network as his family has been engaged in the wholesale business for toys in Pathum Thani over a long period.

Mr Komkrit says that his company is looking forward to extending its product portfolio to other fast-moving consumer goods items.

Kuma tissue paper is now available through wholesale stores across the country.

The company expects its sales to increase by over 30% to 1.56 billion baht this year and will double to 3 billion baht within the next five years.

To build long-term growth, the company plans to expand its products to traditional trade channels in Laos this year and will enter Myanmar and Vietnam in the future, said Mr Komkrit.

In the domestic market, the company plans to ramp up its premium tissue products via modern retail channels. It already sells Kuma premium tissue products at branches of OfficeMate and the Eveandboy beauty chain.

In addition, the firm has allocated 60 million baht to build its new office building on a two-rai plot in Pathum Thani this year, with the construction due to be complete within the next two years.

Thailand's cleansing tissue paper market is estimated to be worth more than 4 billion baht a year.