Scacare maker joins Japanese

       Pharmacosmet Plc, the manufacturer of the Tea Tree and Scacare personal and skin-care brands, will form a business alliance with a Japanese partner to codevelop skin-care products and market them in Japan next year.
       The move will help its products to become regional brands as well as triple the company's sales to one billion baht by 2013, said managing director Sutee Ratananakin.
       The company is now working with the Japanese partner, which is in the skin-care-related business, to develop personal and skin-care products exclusively for Japan. The company will endorse Tea Tree and Scacare as sub-brands to the core brand of the Japanese partner.
       Pharmacosmet will handle the production of new product formulas. In the initial step, it will start producing moisturiser, facial foam and products for men.
       Forming the strategic partnership is the company's major business strategy in overseas along with appointing sales agents.
       "There is a huge opportunity in the Japanese market but competition is very fierce as well. But if we are successful in Japan, we will spin off our business to other international markets in the future and both products will become regional brands," Mr Sutee said.
       To support future growth, the company has invested about 20 million baht to add 5,000 square metres of space at its factory in Phutthamonthon Sai 5 to produce products for export markets as well as more original equipment manufacturing (OEM) products. The sales proportion between domestic and export markets would be 60:40.
       Mr Sutee said the company had restructured its organisation in terms of product portfolio, brand rejuvenation and modernisation after acquiring Pharmacosmet from the founder a few years ago.
       About 10% of the Scacare product items were dropped and Tea Tree and Scacare products were reformulated with more additives.
       Sales of Pharmacosmet last year were 380 million baht and are forecast to rise to 450 million baht by the end of this year. About 70% of sales came from Tea Tree and the remainder from Scacare.