Mr. Chaiwat Nantiruj, Eka Global's Group CEO, commented that the uncertain global economy was a serious concern. The US Federal Reserve's quantitative tightening (QT) plan, the Russia-Ukraine war, the rising oil price are among the key factors that affect the global economy. Increasing production cost worldwide has also affected Thailand's economic recovery and exchange rate. Weaker Thai baht against US dollars is seen after the US increased interest rate by 0.5% and introduced QT plan, selling 45 billion bonds in June.
"The weaker baht against US dollars, however, may boost Thai export and tourism industry. This will boost Thai economy in remaining months this year. At the same time, it provides opportunity for exporters across all industries, from automotive and electronic parts to rubber, rubber products, processed foods, agricultural products and food products. Of course, this means more opportunity for Eka Global as we are a leading exporter of food packaging products," said Chaiwat.
Despite good export opportunity, the food and food packaging industry is cautious about food shortage. The United Nations recently warned that food crisis was likely to worsen in 2022. The number of people affected by food shortage has reached the new peak due to the war between Russia and Ukraine, Climate Change, and the COVID-19 pandemic.
To prepare for such possible crisis, Eka Global has adjusted its business strategy and shifted its focus to sustainable growth and resiliency. The company has invested more in product R&D to ensure that its products directly address consumers demand in the long run.
The company has focused its R&D in three areas namely 1) bioplastic (PLA) from tapioca, corn and sugar cane, etc.; 2) biodegradable products made entirely from natural raw materials; and 3) PCR packaging or resin recycle.
"Looking into the second half of this year, we continue to have strong business. We have seen increasing pre-order volume from all markets, from the US, India, Europe, Japan, Thailand, etc. High demand for food products has continued at the same level as when COVID-19 pandemic reached its peak. With all these trends, Eka Global is strongly confident in our growth target of between 30-35% this year," said Chaiwat.
From May to June 2022, Eka Global plans to attend various good fairs in Thailand and other countries, such as Interzoo pet fair in Germany from 24-27 May 2022, THAIFEX Anuga Asia 2022 from 24-28 May 2022 at Challenger Hall and IMPACT Hall 11-12, IMPACT Muang Thong Thani, and ProPak Asia 2022, the international processing and packaging exhibition held from 15-18 June 2022 at BITEC Bangna.
Source: Make A Wealth Consulting
