Buildersmart designed for focused, sustainable success

Buildersmart Plc (BSM) is a building materials manufacturer and distributor listed on the Market for Alternative Investment since 2008. Managing director Sunchai Nuengsit discusses the company’s strategy and outlook.

Please explain the history of BSM

BSM was founded in 2001 by executives who had long experience in the building industry and interior work. We saw the need for good quality, innovative products and solutions for the Thai market. We became a manufacturer and distributor of gypsum wall and ceiling systems and aluminium products for interior work under the Alloy brand. Over time we successfully grew our business and listed on the Market for Alternative Investment in 2008. We have expanded our product lines and today we have three core businesses under BSM, D&W Asia and Sansara.

What attracts customers to use BSM services and products?

We have three groups of customers: the project owner, the specifier which is typically a designer or architect, and the contractor. We have the ability to service each beyond what our competitors typically offer. If they are interior designers, we offer products with great design and high quality.

We are aware that interior contractors sometimes have to work after office hours, so we have equipped our warehouse and logistics operation to service them, and all vehicles have GPS so customers know where and when products will be received. We also have a training centre where we provide free product and installation training so that they can be more effective for their customers.

Because our services are integrated with our own manufacturing facility we are able to confirm to our customers both volumes and prices for 6-12 months depending on their needs. In addition to services, we are also focused on improving the quality and functionality of our products, because we believe small details make a big difference.

BSM has trimmed its product lines to three categories. Why the shift?

We decided to refocus to products where we are either number one or number two in the market instead of being a jack of all trades. The issue with having multiple products is that when a lot of materials are commodities, first the margin is low and second there are a lot of associated costs such as sales, inventory and customer service, which results in them not being profitable; hence the decision to change our focus.

Today with BSM we focus solely on gypsum and aluminium products. With D&W Asia we distribute doors and window products, 50% throughout Thailand and the rest in India, Cambodia, Myanmar and other countries, and finally we have Sansara for retirement villages.

How do you see the industry developing?

Today in Bangkok there are about 8 million square metres of office space with new supply coming up including Bhiraj Towers, GLAND on Rama IX, FYI Center and many others. With this increase in supply as well as the natural replacement demand for office space every three years, which is approximately 10% of the market on an annual basis, we are confident that the market is going to continue to grow.

More interestingly, we see that with higher property prices people are now willing to buy better-quality products for their new homes or condominiums and that too should help the industry grow.

BSM has recently expanded into retirement villages. What is the opportunity?

We consider the retirement-style village to be a very attractive business because the population is naturally ageing but people’s lifestyles are changing as well. Thus in order to build a sustainable business and project BSM needed strong partners. We were fortunate to team up with Black Mountain Hua Hin, which is where the project will be located next to its new golf course development.

We also have teamed up with The Beaumont Partnership, design and architecture experts, and IMG, which has several years of experience in developing and managing multiple retirement villages in Australia.

Together we launched our first project, Sansara, worth 500 million baht and on the back of this success we may expand further in Hua Hin and other potential destinations such as Chiang Mai, Khon Kaen and Khao Yai.

Where do you see BSM five years from now?

There is a lot of competition in our industry and we have made missteps; however, we view these as growing pains and are confident that our shift to core products will allow us to further gain additional market share within Thailand.

In addition, our focus with D&W Asia should help us achieve continual growth as we aim to focus further on international markets such as Cambodia and Myanmar.

Finally, we expect our retirement village to be the start of a new business and potentially a new industry in Thailand. We care about the minor details and ensure that our products are built for life. Our services and products are all about fast-tracking, value for money and being environmentally friendly.

Source: Bangkok Post