บริษัท ไดนาสตี้เซรามิค จำกัด (มหาชน) - Dynasty TileTop

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In 2011, we have predicted that costs will
increase; especially in energy. So the company will focus
on developing to fix the cost, to increase the potential
of all selling points and the value-added to the products
by considering the gross profit as the priority. The overall
targets are:
• Maintaining the gross profit to be from 44% to
45%
• The sales growth rate of 10% from 2010
• Opening 10-15 more branches by 2011
• Increasing the production capacity to 2 kilns
• Decreasing waste to be lower than 1%
Because of the quiet condition of market in the
second half of 2010 due to the flood in many provinces,
constructions had to be slowed down in many areas. The
manufacturers, then, had to lower the prices, although,
the other costs; especially the energy cost, will start to
increase in 2011.
As for Dynasty, we slowed down the 2 projects
concerning the new kilns; one of them was opened in
January 2011. This new kiln can manufacture about
250,000 m2 per month. The company will start using
the second kiln in July 2011; this has taken the
investment of about 280 million Baht and will have capacity to
manufacture about 285,000 m2 per month. After using
both kilns, the company will be able to take advantage
from Economy of Scales and lower the production costs.
For the sales growth rate, the company has
targeted at 10%, less than the last year’s target because
the company had the sales of 6.5 billion which is pretty
high and this year’s house repairs and house construction
are still affected by last year’s floods. Most of people
encountered the flood still have to wait for their own
revenue from their next manufacture to repair their places.
The company has evaluated that the overall market will
grow up about 6%-7%, but the reason why we have
targeted higher is to gain more market share.
The company has projected to maintain the gross
profit rate to be from 44% to 45%. The methods to be
carried out depend on both cost and marketing elements.
Marketing
• The current market trend is bigger tile. The
company’s kilns can change the size of the tiles on demand.
Moreover, the bigger tiles will allow the company to raise the
average selling price per m2 as well as higher gross profit.
• The opening of new 10-15 branches will increase
the company’s channels and take more market share in the
same time.
• The policy of targeting on the constructors as a
target market which will have the subscription for this special
group of customers will stimulate continuing of purchases.
Cost
Since the company has predicted that the energy cost;
especially the natural gas which is the main composition in
manufacturing, as well as the cost of the chemicals, affected by
the rising gas price, will increase. The company has policies to
control the cost as below.
• Increasing the production capacity which will make
the company take advantage of the Economy of Scale to reduce
the production cost
• Research and development in the tile’s compositions
to lower the temperature in the incineration which will result in
less usage of the natural gas
• Research and development in the tile color’s compositions
and other chemicals to find cheaper substitute
• Creating new technology to reduce the use of chemicals
• Decreasing waste from last year’s 1.13% to be lower
than 1%
Considering the fact that we have to be qualified for
many countries’ industrial standards, the cost control mentioned
above will be employed with the primary concerns of the tile’s
quality. If any policy reduces the tile’s quality, the company will
not bring them into action.
Transportation
The Company has also planned to improve transportation
system by using bigger trucks, and routing in considering
the shortest and cheapest distance, which will be able to control
the company’s transportation cost in a way.