SCG Packaging Plc (SCGP) is planning to use hemp fibre, which is environmentally friendly, in its production of packaging materials to add value to its products.
Hemp fibre, which has strong and durable qualities, will not only benefit the industry, but the plant has the potential to become a new economic crop in Thailand, said Wichan Jitpukdee, chief executive of SCGP.
"The company is currently in a process to study hemp genes through a genetic engineering technique to develop ones that best match Thai geography and give high-quality cannabidiol [CBD] oil," he said.
CBD oil can be used for the treatment of many ailments.
SCGP is interested in upstream hemp fibre-related businesses as the plant has long been well-known as a suitable raw material for such industries as textiles and paper.
"We expect our hemp research to be completed as soon as possible. We have experts who are adept at editing hemp genes," said Mr Wichan.
SCGP will continue to seek more business opportunities through investments and business expansion in India and the US because their markets are large and have potential for growth in the packaging business.
Merger and partnership (M&P) plans are also in the company's pipeline.
M&P, together with growing packaging demand in Thailand and overseas, is important to help SCGP achieve its revenue target despite the ongoing Covid-19 pandemic and the Russia-Ukraine war.
"The war may be a positive factor for food exports, which will drive up demand for packaging products," said Mr Wichan.
SCGP expects its revenue to grow to 140 billion baht this year. It wants to see more than 10% growth annually.
Its revenue in the first quarter of this year increased by 34% year-on-year to 36.6 billion baht, with profit rising by 22% to 1.65 billion baht.
Within 2027, revenue is expected to increase to 180 billion baht, thanks to M&P and business expansion.
SCGP will spend an investment budget valued at 20 billion baht this year. The firm expects to allocate around 100 billion baht for investments between 2022 and 2026.
