Issue 58

 

 

Tharaphu Décor has exploited its 20-year expertise in the teak industry to diversify its business portfolio into other fast growing sectors.

“My father imported teak wood from Myanmar and later the company was granted the concession for the teak business in Myanmar,” says Tharaphu Décor’s director, Apiwitt Phongsphetrarat.

Tharaphu Décor opened a factory in Yangon 13 years ago to process wood for export. Around 75% of its processed teak is exported to Europe and the US while 20% is sent to Thailand, with the rest shared around other countries.

“Our expertise in teak processing and marketing is the company’s strength as we can create the highest value and benefit from the limited supply of the raw material. Our consumers represent a niche market because teak is considered a specialty. Tharaphu Décor truly understands what our consumers are looking for and we have good and strong relationships with them,” says Phongsphetrarat.

However, as Myanmar has opened up to foreign investment in recent years, the company has expanded its business into other sectors including construction, media, telecommunications, logistics and healthcare.

“These industries are interesting and have high growth potential. Now, we provide comprehensive services for construction, logistics and distribution. Telecommunications is a vital business,” he says. “There is also a strong demand for healthcare because Myanmar still lacks the proper facilities and skilled healthcare human resources.” Tharaphu Décor has a franchise to operate leading Thai aesthetic beauty centre, Nitipon Clinic in Myanmar.

Phongsphetrarat believes that all these sectors will grow continually over the next 10 to 20 years. Although Myanmar’s laws, regulations and bureaucracy can present a challenge for foreign businesses, Myanmar’s government has attempted to create a more investor-friendly environment.

Data from Myanmar’s Directorate of Investment and Company Administration shows that foreign direct investment (FDI) during the 2015-2016 fiscal year, totalled US$9.4 billion, spread over 217 projects. The oil and gas sector attracted the biggest investment, followed by transport, communications and manufacturing.

“You must go to the field, observe and assess the market size and its growth potential,” Phongsphetrarat advises potential investors to Myanmar. “The initial investment cost is quite high but I ensure you that the budget for creating your brand awareness in Myanmar now is cheaper than what you will have to spend in the next three to five years.”

For more information, please visit www.sesiafurniture.com or contact Phongsphetrarat at This email address is being protected from spambots. You need JavaScript enabled to view it.

Words by Somhatai Mosika