Delta Thailand Eyes 50% Revenue Growth in 2015

Delta Electronics (Thailand) Public Co., Ltd., a Thai subsidiary of Delta Electronics Inc. of Taiwan, a major supplier of power supply systems, recently reported having won orders from international automakers in Europe and the USA for power converters for electric vehicle (EV) applications. The Thai subsidiary's annual revenue from automotive electronics may grow at least 50% in 2015.

Delta Thailand's business model is "developed in Germany, manufactured in Thailand," with a forecast of annual regional revenue (mainly from Thai and Indian markets) to grow from US$1.3 billion to US$2.5 billion over the next five years.

Delta Thailand is capitalized at about NT$1.16 billion (US$38.7 million), with Delta Taiwan holding 21% stake. In 2013, the Thai subsidiary registered revenue of NT$1.3 billion and net earnings of about NT$3.88 billion (US$129.3 million), for profit margin of 26.3%.

Hsieh Shen-yen, Delta Thailand president, says the company plans to further diversify product line into industrial automation, uninterrupted power supply system (UPS), telecom power supply, video and imaging systems, energy regeneration, automotive electronics, with business development to be based on existing major markets as Thailand and India, expansions into the Association of Southeast Asian Nations (ASEAN) as well as Australia and New Zealand.

Hsu Wei-min, Delta Thailand vice president, says its solution products generated revenue of about US$118 million in 2013, which was less than 5% of its overall income that by 2018 will likely reach US$500 million. Delta Thailand has engaged in automotive electronics for 10 years, Hsu says, and by 2015 such business is expected to enjoy clear growth.

Delta Thailand used to outsource from global automotive tier-1 Lear for automotive electronics products for global automakers, which, Hsu says, will change in 2015 for Delta Thailand has won power-converter orders from Mercedes-Benz, Audi, Tesla etc. This year, he says, automotive electronics sales will account for about 7% of Delta Thailand's overall income, and the ratio will rise to 10% by 2015, and even higher in the future because all major customers will place big-ticket orders.

In 2003, Delta Taiwan acquired Ascom Energy Systems of Europe through Delta Thailand, further consolidating Delta Group's lead in the telecom power-supply sector especially in Europe and India. In the future, the group may lead the sector via acquisitions in other segments.

A senior manager of the Delta Group said previously that acquisitions enable the group to rapidly access needed technologies, distribution chains, and markets. Delta Thailand was founded in 1990 and went public in Thailand in 1995, whose president Hsieh is Taiwanese and vice president Hsu being Thai.