Reforestation firm plans to boost image by listing

Reforestation firm plans to boost image by listing.

Touchwood Forestry, Asia's first privately managed reforestation operator, plans to enter the Market for Alternative Investment in September, its CEO Pierre Maloney said yesterday.

"We want to become a listed company with the main purpose of creating a good image, not raising funds," he said.

Touchwood, which is a Sri Lankan-Thai joint venture, started operations three years ago and has registered capital of Bt25 million.

Its business involves the management of agarwood plantations owned by both Thai and foreign investors. High-quality resin - used in incense and perfumes - is extracted from the trees.

The company currently has about 400 investors, 60 per cent of whom are foreigners.

"Our investors will receive a minimum rate of return of 18 per cent after six years of investment. Agarwood product prices have tended to increase thanks to high demand in the global market," said general manager Patcharapol Suviyanond.

He said there was high demand in almost every part of the world, notably in Arabian countries, China, Japan, India and Europe.

Touchwood has spent more than Bt100 million as an initial investment to implement its agarwood plantation project. The first phase is in Prachin Buri province, on a 200-rai plot.

The company plans to expand its plantation area to 1,900 rai this year. It has been granted an eight-year income-tax exemption by the Board of Investment.

Monthly revenues stand at Bt9 million.

Chalida Ekvitthayavechnukul

The Nation
Friday January 12, 2007