Sun Vending Technology Plc (SVT) is beefing up its vending machine business to capitalise on rising demand for the devices due to the pandemic.
According to Pitsnu Chokwatana, senior vice-president at the SET-listed vending machine distribution company under Saha Group, the country's leading consumer product conglomerate, customers have become used to buying products from vending machines due to Covid-19 outbreaks and the bubble and seal measures applied at factories and markets.
E-payments at vending machines have boosted growth, now accounting for up to 50% of total payments in some areas, up from 5-10% before the pandemic, Mr Pitsnu said.
"After the bubble and seal measures were applied at factories to contain the spread of Covid-19, our business significantly improved. There is also more demand for our vending machines in various locations because vending machines fit a new normal and contactless lifestyle,'' Mr Pitsnu said.
According to Mr Pitsnu, the company plans to spend 640-680 million baht to increase its vending machines across the country to 20,000 units by 2023, up from an estimated 14,600 units by the end of this year.
The machines will be installed mainly at factories and logistics centres. Of the 20,000 vending machines, 15,000 units will be smart vending machines and the remaining 5,000 vending machines will be under the original format.
Moreover, Mr Pitsnu said the spending will be used to develop the machines and upgrade the electronic system for its smart vending machine format. The total number of vending machines in Thailand in 2020 was estimated at 30,000 units.
According to Mr Pitsnu, a portion of the spending will be used to build two new branch offices in Lamphun and Udon Thani in 2022 to accommodate the company's expansion in the northern and northeastern regions.
Mr Pitsnu said Lamphun boasts many industrial parks while Udon Thani connects to Nong Khai, which is expected to become a new economic zone or logistics hub once the Laos-China high-speed railway opens.
The two new branches will be opened in the first quarter of next year.
The company currently operates 11 branch offices. It also has its own refurbishment and assembly factory for vending machines.
In 2023, the company plans to open new branches in the south.
According to Mr Pitsnu, the company is scheduled to start expanding into franchises for the first time next month, with two franchise packages on offer.
Interested investors pay a 600,000-baht franchise fee for the 30-vending-machine package, or 1 million baht for 60 vending machines. The company is about to sign up two franchisees in the southern region.
Moreover, the company will start selling its advertisements on vending machines next year to gain additional income, and will also add new products to its machines.
SVT reported sales grew by 11% year-on-year in the first nine months of this year to 1.45 billion baht, with a net profit of 52.84 million baht, or an increase of 13.02% from the same period last year.