Appliance Manufacturer Rides Wave of Middle Class Growth
Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on SNC Former Public Company Limited.
Background
Founded in 1981, SNC Former Public Company Limited is a manufacturer of electric appliances, such as air conditioners, refrigerators and washing machines.
The company acts as seller and OEM supplier for some of the biggest domestic and foreign brands located in Thailand.
The second group of products serve air conditioning production in the automotive industry.
Business Description
SNC Former Public Company Limited comprises 14 companies operating in four main fields: original equipment manufacturing (OEM) of electric appliances, parts for electric appliances, parts for automobiles and a fourth section that includes parts for washing machines and tools made of steel.
SNC serves two main groups of customers. The first group consists of other manufacturers of air conditioning units, refrigerators and washing machines who purchase copper tube, metal sheet parts, plastic parts and heat exchangers. The company also acts as an original equipment manufacturer for customers such as Fujitsu, Sharp Appliance and Mitsubishi Electric.
The second target group of customers are automobile parts manufacturers for which SNC supplies aluminum tube, rubber tube, plastic parts and formed sheet metal later used in the production of air conditioners for cars.
Others include production of incredibly strong industrial tools made of steel and polycrystalline diamond used for cutting and polishing.
Leadership
Satit Chanjavanakul has remained Chairman since 1989, a 28-year career.
CEO Somchai Thaisanguanvorakun has been in place since 2004. While Profitability has slipped slightly from World Class to #2 over the last five years, Growth has improved to average since 2014.
World Class Benchmarking
Profitable Growth has additionally fallen to #3 in recent years from #1 in 2012. But SNC still remains squarely in the upper half of sector competitors.
SNC ranks among the best 474 of 1,589 medium industrial companies worldwide.
Profitability has been in the green since 2012, while Growth remained average over that time period. However, as stated previously, Growth has improved gradually during this time as well.
Unusually, Asset utilization, often the sore spot on many companies’ benchmarking record, is World Class and drives Profitability.
Sales growth has dropped dramatically to #9, but the Margin change helped to maintain the Growth rank.
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