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Philippine diaper maker in expansion mode

23 May '12

2 min read

Based on the expectations that the demand would keep afloat, JS Unitrade Merchandise Inc, a leading producer of baby and adult diapers in Philippines, intends to grow its sales by two-fold to P10 billion over the next four years.

This would require the company to raise its production. However, moved by rising cost of labour in China, the producer of Dr. P adult diapers and EQ baby diapers is considering setting up a second production facility in Philippines, JS Unitrade President Samuel Po said.

The firm's expansion plans would mainly remain focused on Southeast Asian markets and China, which presently serves as a production base for the company, he added.

The proposed facility would certainly involve higher investment compared to the one in China, as the company eyes to shift its production volume to the new facility. However, the China plant would be sustained as the company looks at supplying paper hygiene products to China, Mr. Po said.

Talks in respect of the Philippine facility are likely to commence this year, but much depends on the firm's ability to secure some “investment incentives” from the Government, he said.

Marking its entry in overseas market, the firm started selling its products in Malaysia last year, and is now on its way to ink a deal with Cambodia. Meanwhile, talks with Taiwan are also on.

The company caters to around 65 percent of adult diaper and 27 percent of baby diaper market in Philippines and sells around 60 million baby diapers per month.

In spite of competition from big players like Proctor and Gamble, which sells diapers under Pampers brand, JS Unitrade's sales have been rising at an average rate of 18 percent over the past three to four years. In comparison, the diaper industry witnessed a growth rate of less than 10 percent during the period.

Mr. Po said at JS Unitrade they offer value for money to their customers alongside the product, an important factor that drives growth of the company. The company made P5.3 billion in sales last year, and expects grow at a rate of 18-20 percent this year.

Mr. Po said the company may consider getting listed on the stock exchange and float an initial public offering, once it achieves its P10 billion revenue target over the next four years.

Technical Textile News Desk - India