Key to Success for Thai SMEs Revealed: KHT Central Supply, ASEAN's Number One Leader in Laundry Equipment

Siam Commercial Bank PCL (SCB), following its policy of business partnership with Thai SMEs, recently hosted a press visit to SCB client KHT Central Supply Group (KHT), ASEAN's Number One Leader in Laundry Equipment. KHT is a leading manufacturer and distributor of industrial laundry equipment under the “Image” brand. Growing despite the economic crisis, the group revealed strategies for succeeding amid global competition and weathering the current economic crisis, and techniques for tapping into new markets. KHT also shared tips for success for Thai SMEs, including adaptation to changes and being alert to all risk factors.

SCB Executive Vice President Dr. Vivat Kittiphongkosol said, “The Electronics and appliance industry is ranked among Thailand's top in exports. There are potential businesses in this sector, particularly laundry equipment. Thai manufacturers are quite few, due to tough competition with rivals – mostly big global brands. KHT Central Supply Group is a manufacturer and distributor of laundry equipment for industrial use such as hospitals and hotels. The group's sales are at the top in ASEAN, the second in Asia, and 14th worldwide. KHT is a Thai SME success story amid the current economic turmoil.”

Accurate Technologies Co., Ltd. is a KHT company. Its Managing Director Visan Mahachavaroj said, “KHT is a provider of full-ranged industrial laundry equipment. We have been in the industry for over 30 years. The group is a manufacturer of laundry equipment, and 75% of our products are for export. We are also a distributor of chemical laundry supplies, and a provider of laundry service to businesses, with an average daily volume of 30 tons.”

“KHT is a family business. In the beginning, we were a distributor of detergents to hospitals. Seeing a market opportunity for laundry equipment in Thailand, we then imported the equipment from the USA, and SCB has supported us since 1992. We have taken business development seriously, starting with laundry equipment assembly. We developed product designs, technology, and effectiveness to meet industrial standards. Then we tackled building our own “Image”brand. At first, it was a lot of trouble, as our brand was relatively unknown and the market was dominated by major global brands. To create strength for the “Image”brand, we developed products to meet universal customer needs, and KHT now has the widest product range in the world. We can offer competitive price to battle foreign brands. As a result, we can rapidly tap into more and more domestic and overseas markets. At present, we are number one in Thailand, with the largest market share--40% market share in the hotel sector and 90% in the hospital sector. For overseas markets, our products are exported worldwide to 50 countries in Asia, Europe, the USA, Australia, and the Middle East.

A strength that makes KHT superior to foreign rivals is product differentiation. Our products are highly effective, particularly our washers. Image washers are designed for long operation, up to 24 hours, and have a spinning capacity of over 300G, which improves cleaning effectiveness. This responds to the needs of our foreign clients. We have to compete with rivals. Although there are a few brands in the market, they all are global brands. Service is also our priority, so we have customer service centers to thoroughly serve clients in every industrial sector. With teams of expert customer service staff and technicians, we are always ready to provide our clients with advice and product maintenance.

As for KHT's business plan for the next 5 years, the group aims at being among the world's top 5 players. For our continuous growth, we will tap into more overseas markets. The success of KHT is a result of our choice to be different from other SMEs. We have entered into an industry with unique markets. Despite major competitors, we can effectively compete with them with high-quality products. We hope our success can inspire Thai SMEs to weather crises with strength. We are also proud to be a vital driver behind Thailand's electronic and appliance industry.”
SCB is determined to be a business partner for Thai SMEs in the same way as its partnership with KHT for over 16 years. The Bank is ready to support Thai SME success in global competition, to inspire or serve as a model for other entrepreneurs to apply to their businesses and adapt to changes. Thai SMEs then can further their businesses and drive the economy forward to sustainable growth.