With ambitious growth targets for the future, Rongngan Phesat Osotsala (Thailand) Co., Ltd. (JSP), led by CEO Mr. Sitthichai Daengprasert, is poised to solidify its position as a leader among pharmaceutical companies. JSP is renowned for its comprehensive health care services, focusing on producing and distributing Own Brand and OEM supplements for humans and animals, including medications, health supplements, and cosmetics.
JSP announced an impressive record-breaking revenue of 824 million baht for the year 2567 BE (2024), and it aims to accelerate this momentum with earnings projections hovering between 900 and 1,000 million baht for 2568 BE (2025). Key to this growth is the rising demographic trend, as the proportion of elderly individuals is anticipated to grow from 25% to 30% by the year 2573 BE (2030). This shift drives demand for health-related products, fostering sales for JSP’s portfolio of medicines and supplements.
To achieve these growth objectives, JSP is implementing innovative strategies over the next five years, starting with extending its customer base. The company plans to shift its focus from primarily serving seniors to engaging with younger demographics. This entails not just offering products for disease prevention but tapping new lifestyles, including the growing trend of working professionals, such as eye care supplements targeted at screen users under the Altimus brand and beauty products under ID Lab.
Marketing initiatives are also set for evolution. Building on successful past collaborations, JSP intends to work with famous presenters, particularly those appealing to younger customers, to promote products effectively. For example, the success of the rice bran oil campaign, supported by celebrity Mae Oat Duangjai Hathaikarn, resulted in sales exceeding one million bottles.
Beyond strategic marketing and customer engagement, JSP is committed to developing a comprehensive health ecosystem. This endeavor includes the Own Brand products under JSP, Osotspa, and ID Lab, along with OEM services. A notable enhancement for the company is its investment in kidney dialyzing solutions through B. Grace Water Med Company, which now constitutes 17% of JSP’s total revenue.
Innovative distribution channels, such as Medis, will also play a pivotal role. With the installation of automated medicine dispensers, JSP plans to expand from 40 to 200 units, providing around-the-clock access to 48 different health-related products. This venture is directly aligned with changing consumer lifestyles, emphasizing convenience.
Despite JSP's optimistic outlook for 2568, significant hurdles remain. The company reported operational profits of 105 million baht against revenue, but asset impairments led to net losses totaling 33 million baht due to devaluation concerns. This situation calls for strict focus on asset management and strategic innovation to offset shortcomings.
On a broader economic scale, Krungsri Bank’s economic team led by Dr. Phimphatra Hirunyarat projects Thailand's economy to grow by 2.7% in 2568, significantly lower compared to neighboring countries like Vietnam, Malaysia, and the Philippines, which are expected to expand by 5% to 8%. This stark difference highlights the urgency for Thailand to invest more strategically in technology and innovation.
Dr. Hirunyarat emphasized the importance of addressing these growth challenges by fostering innovation. With global economic growth expected to stabilize around 3.3%, driven by easing inflation, Thailand needs to intensify efforts to attract foreign investments, especially within technology sectors like Artificial Intelligence, which are increasingly relevant globally.
While Thailand adjusts to these changing dynamics, it has promising opportunities, particularly through its tourism sector, which is projected to recover significantly. Expectations are for international arrivals to rebound to approximately 38 million by 2568, fueling growth from previous years.
Government spending is also on the rise with budget appropriations increasing by 4.2% for the fiscal year 2568, resulting in record deficits estimated at 4.5% of GDP. Although this inflow is anticipated to support various sectors, including infrastructure, structural challenges persist, especially concerning the economic underpinnings of local industry.
Export potential for Thailand remains under scrutiny as economists predict growth at 2.7% stemming from tailwinds provided by electronic goods and digital economy expansions. Conversely, exports may struggle to maintain momentum due to global trade tensions projecting caution from U.S. policy shifts.
Consumer spending, another significant driver, has also shown signs of slowing, with the real income recovery rate lagging. Despite temporary positive influences from tourism’s resurgence, overall economic resilience remains precarious, compounded by high household debt.
Looking to the future, ASEAN-5 growth forecasts remain optimistic at 4.6%, bolstered by domestic demand and increased foreign direct investment. Yet caution must be maintained against external factors, particularly those affecting China's economy and international trade dynamics, including the looming concerns of the global minimum tax.
Thailand must work to align its economic strategies not only to overcome these challenges but also to seize the potential opportunities inherent within its borders. By fostering collaboration between industries and prioritizing technological innovation, the nation has the chance to regain its footing on the global economic stage.
Overall, as JSP combats its internal challenges with innovative strategies, the path taken by the company can serve as both inspiration and case study for Thailand's broader economic aspirations.