ICHITAN SPEND 2 BN MORE

Mr Tan (in blue shirt) checks out the damage at Maitan’s factory in Ayutthaya’s Rojana Industrial Park last week.

Tan Passakornatee, the owner of Maitan Co, which produces Ichitan green tea, is pouring another 2 billion baht into its factory in Rojana Industrial Park in Ayutthaya province to install new machines.

The factory, which was scheduled to open on Nov 11, was kept closed due to the floods. Several of the ruined machines were brand new. The plant has production capacity of 15 million bottles per month.

Installation of the new machines will start next week and is expected to finish during the first quarter of next year. Green tea production should begin in May or June. Maitan has to hire subcontractors to make its products.

Mr Tan said the company lost almost 3 billion baht from the floods. Some 2 billion came from machinery damage. He calculates opportunity loss of 200 million baht. It also signed TV ad contracts in advance for 300-400 million baht for October to December.

"We continued our advertisements despite a lack of products on the shelves. All marketing plans will be revised after the business returns to normal in the middle of next year," Mr Tan said.

Maitan has continued to pay its staff a salary every month, he added.

It expects beverage sales this year to reach 1 billion baht, below its target by 200 million baht.

The sales target for beverage business in 2012 is 1.5 billion baht, about 500 million down from an earlier projection.

The company plans to spend 55 million baht to open 10 restaurants next year, bringing the total to 23. Five outlets will be Melt Me Hokkaido Chocolate, two each at Tokiya Fusion Steak Course and Ramen Champions, with the final one at Ichitan Izakaya Buffet. Food sales are estimated at 650 million baht.