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Auto-parts maker on a roll after debut on the SET

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AUTO-PARTS maker Ingress Industrial (Thailand) (INGRS) plans to use the proceeds from its IPO debut in the Stock Exchange of Thailand yesterday to expand and further strengthen its businesses in all key countries, especially India and Indonesia, which are two of the fastest-growing automotive markets worldwide. Rameli bin Musa, deputy chairman, said the company was pleased to become the first au

Indonesia’s automotive market should register significant annual growth of 14.3 per cent for the next 3 years, pushing towards the 2-million-unit a year milestone by 2020.

India is another fast-growing market with an estimated 4-million-car production this year, a 14.3 per cent increase from 3.5 million lat year. While the volume of annual production in India is already larger than that of all Asean carmakers combined, the market there is expected to further expand from the increase in domestic sales as well as exports to neighboring countries. INGRS is looking forward to expand operations and launch more products in these two countries.     

In Thailand INGRS has 3 operating plants, serving many global automakers with plants located in the provinces of Rayong and Ayutthaya.

“We expect the Thai automotive market to resume its growth of about 3.5 per cent annually for the next three years. Malaysia, another main market, should see strong recovery in the next three years with an expected annual growth of 4.5 per cent ,” he added.

Abdul Rahim bin Haji Hitam, chief executive officer, says the company is growing from being the Asean’s leading auto-parts maker to become “An Asian company with global reach”.

The group has nine companies, comprising eight subsidiaries and one associate company with high-technology capabilities in four countries - Thailand, Malaysia, Indonesia and India. It also has long term relationships with technical partners such as Katayama Kogyo, Metaltech and Iwamoto from Japan as well as Woo Young of Korea.

In cooperation with its technical partners, it has developed know-how and expertise in the prdouction of high-quality items for various car makers, including Honda, Mitsubishi, Ford, Mazda, General Motor, Isuzu, Suzuki, Nissan, HINO, Toyota, Daihatsu, Perodua and Proton as well as for customers in India ,such as Maruti-Suzuki, Fiat and Mahindra & Mahindra,”

After the IPO, INGRS will have an registered capital of Bt1.4 billion (at Bt1 par value), with its major shareholder Ingress Corporation Berhad holding 60 per cent and public investors 40 per cent. . INGRS recorded total revenue of 2,915.9 Million Baht and Net Profits before Minority Interest of 210.4 Million Baht for the financial year ended 31 January 2017, a 19% increase from 177.0 Million Baht from revenue of 3,158.6 Million Baht, a year earlier. This, despite the Group’s having to recognize a one-off tax recalculation in compliance with the latest tax regulation amounting to 32 Million Baht. The Net Profit Margin also recorded an increase to 7.22% despite the decrease in revenue.

Going forward, the Group is expected to benefit from improved sentiment in ASEAN and as well as the introduction of new products into the market. INGRS has a 40% dividend payout policy, of net profit after income tax and after the allotment of legal reserve.

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