2:25:32 PM | 30/12/2014
Bang Mineral Water has been built up and developed by Bang Mineral Water Joint Stock Company for the past 25 years. The mineral, tapped from the Bang Spring in Le Thuy district, Quang Binh province, is distributed from Danang to Hanoi, of which Quang Binh province accounts for 90 percent of sales. With its modern machinery and standard product quality, the mineral water is favoured by consumers.
Due to seasonal sales, the company sees a lot of difficulty in capital turnover and output guarantee. Moreover, the competition is quite stiff because there are a lot of mineral water producers along central provinces, estimated at one producer every 100 km. Therefore, the company has to take drastic measures to survive and stabilise business operations.
Shortly after going public in 2010, the Board of Directors pooled investment capital, rationalised production, improved technology, enhanced competitiveness, reduced costs, and cut transport costs. The company focused very much on traditional markets like Quang Tri, Quang Binh, Hue and Ha Tinh.
In addition, defining product quality is a vital element to development, the company applies modern Italian production lines, creates different products, suits consumer tastes, and retains flavour. Furthermore, Bang mineral water is extracted from a source where water is boiled at 105 degrees Celsius; thus, the company has more advantages over other rivals. Currently, the company manufactures two lines of products: Noncarbonated mineral water (0.5-litre bottle, 1.5-litre bottle and 20-litre can) stored in plastic bottles, and carbonated mineral water (0.46-litre bottle, 0.33-litre bottles) stored in glass bottles.
In the last four years, output has expanded 10 percent annually. The company now employs 132 workers whose pays increases 20 percent yearly, and pays VND2 billion to the State Budget. Sales usually surge from May to August, even reaching 1.5 million litres a month. The company’s mineral water is certified by the Vietnam Food Authority under the Ministry of Health and granted the Gold Medal for safe food for community health.
Besides, to increase incomes for employees, the company invested in other business lines like ice, trading business, and Hanoi beer distribution.
Director Tran Huu Hoa said the company will scale up production output from the current 11 million litres to 15 million liters in the next three years, and invest VND5 billion in infrastructure expansion and VND14 billion in equipment. In addition to traditional markets, the company will boldly seek new markets to expand distribution channels. The firm expects to increase non-core business revenue to 30-35 percent of its total revenue.
He hoped that, with its potential and advantages, Quang Binh province will have stronger growth in the future. The province will further support the local business community to develop and to attract new investors from other localities. The province necessarily assists local businesses to access credit sources to expand operations.
Lam Anh
Vietnamese
