Latex Systems Public Company Limited | APEA - Asia Pacific Enterprise Awards

CORPORATE EXCELLENCE

Latex Systems Public Company Limited

Introduction
Established in 2003, Latex Systems Public Company Limited (“LS”) is one of the biggest manufacturers in Thailand which specializes in manufacturing and distributing mattress, pillows and other accessories made from 100% natural latex.

The Company’s business is divided into two categories, namely, non-branded business and branded business. For non-branded business, which consists of OEM, B2B, and B2G, it offers products to wholesalers, operators of bed sheets, department stores, and furniture stores from countries such as Australia, Canada, China, Korea, New Zealand, Singapore, and US. For branded business, the company mainly targets B2B, B2C, institutions, and organisations through agents, exhibitions and trade shows.

LS’ vision is to be the leader in the bedding industry that is produced from 100% natural rubber at the international level. The Company strives to achieve this vision by developing innovative products to meet the needs of customers, to utilise technology to develop better quality products and increase production efficiency, as well as to strengthen and enhance knowledge and competency amongst its employees at all levels.

The Company’s products are well-recognised by customers from domestic and overseas market. This is shown from the various accolades received, namely ECO which was issued and tested by ECO INSTITUT GmbH, this test evaluates rubber content in relation to synthetic rubber and filler and harmful substances; Thailand Trust Mark, a symbol of excellence and trusted quality which was established by Department of Trade Promotion to add distinctive value to Thai products and services; as well as TIS (Thailand Industrial Standard), a standard issued by Thailand Industrial Standard Institute on production process, product test and product safety.

Corporate Culture
With over 450 people, LS has a core mission in conducting business based on ethical and good governance frameworks as well as transparency and accountability according to the corporate social responsibility (CSR) guidelines of the Stock Exchange of Thailand. Moreover, the Company recognises the importance of conducting business for sustainable growth based on corporate social responsibility which focuses on business operations that care about stakeholders, economy, society and environment with integrity, morality, and ethics.

For the past years, LS has organised various social activities such as donations to provide scholarships and lunch for needy schools in provincial areas, donations to support sports activities in various universities, and donations to many government agencies to support activities that are beneficial to the society. The Company continues to find opportunities to organise social activities and actively instill the awareness of corporate social responsibility among its employees. Besides, it strictly monitors and controls its operations to ensure compliance with the regulations issued by the supervisory authorities. Some of LS’ previous CSR activities include supporting the first Good Deeds Activity at Chachoengsao Panyanukul School; supporting the Elderly Day event in Hom Sin, Bang Pakong through donations; participating in the project “Happy Community with Zero Waste”; and providing educational opportunities to students at “Kalahom Utis School”.

Achievements and impact
Currently, LS has two factories and three warehouses. Its factory in Bangna-Trad produces latex mattress, latex pillows, and latex cushions. In 2018, it produced over 68,640 mattresses, and around 2,071,000 pillows and cushions. Another factory which is located at Rayong Province produces latex pillows. The factory was bought in September 2018. Until June 2019, the Company has over 515 employees. Due to the shortage in labour, LS was required to hire approximately 65% licensed workers from Myanmar.

The company has continuous revenue growth. From year 2016 to 2018, its total revenue are 429.40 million baht, 753.47 million baht and 831.73 million baht, respectively. These represent an average annual growth rate of 24.65%. The Company’s main income is from the sales of mattresses, pillows, and other products made from natural latex, which represents an average proportion of 99.24% of its total revenue. Its revenue growth was mainly driven by the expansion to the Chinese market where bedding products made from natural latex, manufactured in Thailand have increased in popularity and confidence, resulting in higher sales revenue from exports to China.

Future Direction
LS is currently planning for market expansion by focusing on its branded and non-branded products to existing and new markets such as CLMV, USA, Europe, and Middle East. Furthermore, the Company plans to develop new strategies for business sustainability, and launching branded products will ensure its existence. The company also plans to build a showroom to be a center for experimentation, learning, and experiencing bedding products made from real latex in four locations. Each of the showrooms will be situated in the heart of the country’s tourist destinations and business centers.

In addition, the team at LS is committed in making latex bedding products as the Product of Thailand, which will be immediately recognised by foreigners. To promote its products as the Product of Thailand, the Company recognizes the need to have a research and development team as well as consultants and experts in every business aspect. Besides, LS has placed a great emphasis on personnel development by offering employee promotion which is considered a subcommittee who evaluate nominated successors. In terms of executive positions, there is a recruitment committee who review and evaluate within the established criteria for good executive.

CORPORATE EXCELLENCE

Latex Systems Public Company Limited

Introduction
Established in 2003, Latex Systems Public Company Limited (“LS”) is one of the biggest manufacturers in Thailand which specializes in manufacturing and distributing mattress, pillows and other accessories made from 100% natural latex.

The Company’s business is divided into two categories, namely, non-branded business and branded business. For non-branded business, which consists of OEM, B2B, and B2G, it offers products to wholesalers, operators of bed sheets, department stores, and furniture stores from countries such as Australia, Canada, China, Korea, New Zealand, Singapore, and US. For branded business, the company mainly targets B2B, B2C, institutions, and organisations through agents, exhibitions and trade shows.

LS’ vision is to be the leader in the bedding industry that is produced from 100% natural rubber at the international level. The Company strives to achieve this vision by developing innovative products to meet the needs of customers, to utilise technology to develop better quality products and increase production efficiency, as well as to strengthen and enhance knowledge and competency amongst its employees at all levels.

The Company’s products are well-recognised by customers from domestic and overseas market. This is shown from the various accolades received, namely ECO which was issued and tested by ECO INSTITUT GmbH, this test evaluates rubber content in relation to synthetic rubber and filler and harmful substances; Thailand Trust Mark, a symbol of excellence and trusted quality which was established by Department of Trade Promotion to add distinctive value to Thai products and services; as well as TIS (Thailand Industrial Standard), a standard issued by Thailand Industrial Standard Institute on production process, product test and product safety.

Corporate Culture
With over 450 people, LS has a core mission in conducting business based on ethical and good governance frameworks as well as transparency and accountability according to the corporate social responsibility (CSR) guidelines of the Stock Exchange of Thailand. Moreover, the Company recognises the importance of conducting business for sustainable growth based on corporate social responsibility which focuses on business operations that care about stakeholders, economy, society and environment with integrity, morality, and ethics.

For the past years, LS has organised various social activities such as donations to provide scholarships and lunch for needy schools in provincial areas, donations to support sports activities in various universities, and donations to many government agencies to support activities that are beneficial to the society. The Company continues to find opportunities to organise social activities and actively instill the awareness of corporate social responsibility among its employees. Besides, it strictly monitors and controls its operations to ensure compliance with the regulations issued by the supervisory authorities. Some of LS’ previous CSR activities include supporting the first Good Deeds Activity at Chachoengsao Panyanukul School; supporting the Elderly Day event in Hom Sin, Bang Pakong through donations; participating in the project “Happy Community with Zero Waste”; and providing educational opportunities to students at “Kalahom Utis School”.

Achievements and impact
Currently, LS has two factories and three warehouses. Its factory in Bangna-Trad produces latex mattress, latex pillows, and latex cushions. In 2018, it produced over 68,640 mattresses, and around 2,071,000 pillows and cushions. Another factory which is located at Rayong Province produces latex pillows. The factory was bought in September 2018. Until June 2019, the Company has over 515 employees. Due to the shortage in labour, LS was required to hire approximately 65% licensed workers from Myanmar.

The company has continuous revenue growth. From year 2016 to 2018, its total revenue are 429.40 million baht, 753.47 million baht and 831.73 million baht, respectively. These represent an average annual growth rate of 24.65%. The Company’s main income is from the sales of mattresses, pillows, and other products made from natural latex, which represents an average proportion of 99.24% of its total revenue. Its revenue growth was mainly driven by the expansion to the Chinese market where bedding products made from natural latex, manufactured in Thailand have increased in popularity and confidence, resulting in higher sales revenue from exports to China.

Future Direction
LS is currently planning for market expansion by focusing on its branded and non-branded products to existing and new markets such as CLMV, USA, Europe, and Middle East. Furthermore, the Company plans to develop new strategies for business sustainability, and launching branded products will ensure its existence. The company also plans to build a showroom to be a center for experimentation, learning, and experiencing bedding products made from real latex in four locations. Each of the showrooms will be situated in the heart of the country’s tourist destinations and business centers.

In addition, the team at LS is committed in making latex bedding products as the Product of Thailand, which will be immediately recognised by foreigners. To promote its products as the Product of Thailand, the Company recognizes the need to have a research and development team as well as consultants and experts in every business aspect. Besides, LS has placed a great emphasis on personnel development by offering employee promotion which is considered a subcommittee who evaluate nominated successors. In terms of executive positions, there is a recruitment committee who review and evaluate within the established criteria for good executive.