Home / Knowledge / News / Apparel/Garments / Marubeni entrusts Erawan Garment Co to Saha Group

Marubeni entrusts Erawan Garment Co to Saha Group

05
Jun '08
Appreciation of baht against US dollar has forced Marubeni, a leading Japanese trading firm, to give up its textile business in Thailand.

The company struggled hard to prevent erosion of its export competitiveness but in vain. Firming of domestic currency, the consequent inflation and weakening purchasing power of the consumers was too much for the company to bear.

Sources from the company told Fibre2fashion, after operating successfully for nearly four decades, Marubeni finally decided to give up in front of such trying and oppressive circumstances. It sold nearly 80 percent of the Erawan Garment Co for one million baht to its local co-partner Saha Group, the largest consumer product conglomerate in Thailand.

However, Marubeni is not only the foreign based company to have shifted its business from Thailand. A number of other companies have surrendered due to spiraling inflation which averaged at 5.8 percent in the first five months of this year after touching 7.6 percent in May.

These companies have found investment in growing countries like Vietnam far more rewarding than keeping up with impractical business conditions in Thailand.

But Saha had its own reasons for buying Erawan Garment Co from Marubeni, one of which is that the domestic market still evinced substantially demand for textile and garment products.

The other reason being just as reasonable shows that Saha, seeks to expand its current business through this new acquisition. The company is very confident that the market is likely to improve and once in full swing, Thailand will have immense potential to become one of the top ranking textile export countries in the world.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 26th Jan 2021

China's textile & garment exports rise 9.6% in 2020

Despite the COVID-19 pandemic and global economic slowdown, textile...

Pic: Shutterstock

Textiles | On 26th Jan 2021

Vietnam, Israel to sign labour cooperation pact this year

Israel and Vietnam recently initiated negotiations over a labour...

Pic: Shutterstock

Fashion | On 25th Jan 2021

Boohoo buys Debenhams brand, website, but not its stores

Boohoo has reportedly purchased Debenhams brand and website for £55...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

It will take some time for the people to change their buying choices

Binoy Ravjani, Hero's Fashion

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Software Firms, Head honchos

Software Firms
Head honchos

Blockchain technology will shorten lead times

Sarah Perkins,

Sarah Perkins

Fairfax, Virginia-based Specialty Graphic Imaging Association (SGIA) is a...

Verena Ruckh,

Verena Ruckh

Brückner Trockentechnik develops, manufactures and supplies textile...

Dr. Vijaya Kumar,

Dr. Vijaya Kumar

Dr MM Kariappa founded the Vogue Institute of Art & Design in 1996....

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb
Brrr°

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


January 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search