Electronics giant Fujitsu Ltd. foresees a rosy outlook for its digital solutions business in Thailand as internet of things technology gradually increases local entrepreneurs' interest in digitalization.
Eiji Furukawa, managing director of Fujitsu (Thailand) Co., said a growing number of local manufacturers are turning to such technology for their operations, recognizing that digital solutions have become crucial for the industry.
"Sixty percent of our customers are currently Japanese firms located in Thailand, while non-Japanese firms account for 40 percent," but non-Japanese customers are expected to increase at a steady pace owing to the rising popularity of the internet of things concept, Furukawa said.
According to research firm Frost & Sullivan, Thai companies are expected to spend 30 billion baht (¥97.7 billion) in 2020 on internet of things technology, with up to 16 billion baht (¥52.1 billion) of that amount coming from the manufacturing industry.
Fujitsu (Thailand) has been logging a healthy 5 percent growth in sales annually. It aims to maintain that growth rate this year, with 60 percent of its revenue generated by solutions and consulting services, and the rest from hardware and devices, Furukawa said.
The company recently partnered with Thailand's second-biggest cement manufacturer, Siam City Cement Public Co. (SCCC), to participate in a project turning one of its plants into the country's first fully digitally connected "smart" cement factory.
Fujitsu was chosen to set up the wireless communications network while Cisco Systems (Thailand) Ltd. is providing the devices, said Ittaya Sirivasukarn, chief executive officer of Insee Digital Co., the SCCC subsidiary handling the digital transformation work.
The digital transformation will be completed by the end of this year, helping the plant save 10 percent in maintenance costs, Ittaya said.