Wacoal International Aspect
FIN4812 INTERNATIONAL FINANCE
Assignment 2
Conducted by
Section 403
Shahana Rishi 5115136
ChiaLi Su 5115289
Submitted to
Dr. Radha Sirianukul
Date Sumbitted: March 6th, 2012 Thai Wacoal Company Limited and Wacoal Holdings Corporation
Thai Wacoal Public Company Limited is the manufacturer of finished garment products, consisting of ladies’ lingerie, ladies’ outerwear, and children wear products, with its main product category focus on ladies’ lingerie. It is a joint venture company between Thailand’s Saha Group and Wacoal Corp. of Japan, established in October 1, 1970.
The parent company, Wacoal Holdings Corp is a multinational corporation operating in major areas of the world such as Europe, America, and Asia. Wacoal Corp. of Japan is located in Kyoto which makes up the center of R&D and business development and caters to the Asia area, which also includes Thailand. There are 5 subsidiaries in Thailand, located in Bangklo, Chonburi, Lampoon, and Prachinburi, with the production plant in Bangklo as the head office.
In October 1, 1970, Thai Wacoal Public Company Limited registered with 4 million Baht. In 1983, it was listed as one of the company on the Stock Exchange of Thailand. It has continuously registered its capital over the years, and has now registered capital of 120 million Baht.
Capital Budgeting Analysis
Wacoal Holding Groups (MNC) capital budgeting differs with the purely domestic companies because:
1. Size of the firm
The registered capital is 120,000,000 Baht with the sales of 3689 million Baht in 2011. Wacoal engages in export about 28% of its total sales. This company covers the women lingerie in consumer product/fashion industry.
2. Access to International Capital Market
Since Wacoal Holding Groups is an international company it would get easier access to capital as per compared to the Thai Wacoal Public Company because of its reputation and image worldwide.
3. International Diversification
Assignment 2
Conducted by
Section 403
Shahana Rishi 5115136
ChiaLi Su 5115289
Submitted to
Dr. Radha Sirianukul
Date Sumbitted: March 6th, 2012 Thai Wacoal Company Limited and Wacoal Holdings Corporation
Thai Wacoal Public Company Limited is the manufacturer of finished garment products, consisting of ladies’ lingerie, ladies’ outerwear, and children wear products, with its main product category focus on ladies’ lingerie. It is a joint venture company between Thailand’s Saha Group and Wacoal Corp. of Japan, established in October 1, 1970.
The parent company, Wacoal Holdings Corp is a multinational corporation operating in major areas of the world such as Europe, America, and Asia. Wacoal Corp. of Japan is located in Kyoto which makes up the center of R&D and business development and caters to the Asia area, which also includes Thailand. There are 5 subsidiaries in Thailand, located in Bangklo, Chonburi, Lampoon, and Prachinburi, with the production plant in Bangklo as the head office.
In October 1, 1970, Thai Wacoal Public Company Limited registered with 4 million Baht. In 1983, it was listed as one of the company on the Stock Exchange of Thailand. It has continuously registered its capital over the years, and has now registered capital of 120 million Baht.
Capital Budgeting Analysis
Wacoal Holding Groups (MNC) capital budgeting differs with the purely domestic companies because:
1. Size of the firm
The registered capital is 120,000,000 Baht with the sales of 3689 million Baht in 2011. Wacoal engages in export about 28% of its total sales. This company covers the women lingerie in consumer product/fashion industry.
2. Access to International Capital Market
Since Wacoal Holding Groups is an international company it would get easier access to capital as per compared to the Thai Wacoal Public Company because of its reputation and image worldwide.
3. International Diversification
References: http://www.wacoal.com/brand_info/global_wacoal.html http://www.wacoal.co.th/corporate/investor_relation/investor_relation_main_cor_en.asp http://www.wacoal.co.th/corporate/investor_relation/investor_relation_structure_cor_en.asp http://www.wacoal.co.th/corporate/investor_relation/investor_relation_financial_summary_cor_en.asp http://www.wacoal.co.th/corporate/investor_relation/investor_relation_stability_cor_en.asp http://www.wacoal.co.th/corporate/investor_relation/financial/pdf_financial_en/2554_WACOAL-q411_e.pdf http://www.wacoal.co.th/corporate/investor_relation/annualreport/pdf_annualreport_en/2553_annualreport_E.pdf