Tan A Dai Thanh Group: From a story of a water tank to the trillion-dollar corporation

Owning a system of 12 high-tech manufacturing plants, 18 affiliated companies, with the supply capacity of water tank products alone about 1,700 products/day, annual revenue of nearly 2,000 billion VND, the Tan A Dai Thanh Group has gone from a toddler to a trillion-sized enterprise after just over 2 decades.

Diversify product supply, expand market share

Starting with the first water tank factory located in Hung Yen 24 years ago, Tan A Dai Thanh has now developed a system of 12 high-tech manufacturing plants from the North to the South, specializing in manufacturing and supplying diversified products of household metal and water industry equipment for domestic and export markets such as: water heaters, solar water heaters, Stroman uPVC – PPR – HDPE plastic pipes, RO water purifiers, sink, bathtub, shower, interior and exterior paint…

Tan A Factory Hung Yen

The revenue of this manufacturer in 2016 was approximately VND 2,000 billion, and nearly 60% came from water tank products, 25% came from water heaters, solar water heaters, the rest were other products: RO water purifier, interior and exterior paint, accessories… Tan A Dai Thanh is still on the journey to expand production capacity to dream of a more prominent corporation in the future.

By the end of 2016, the Group owned 18 affiliated companies, 196 branches, 500 level 1 distributors and more than 28,000 sales points stretching from the North to the South with a system of 12 large-scale factories in Hanoi, Hung Yen, Ha Nam, Da Nang, Nghe An, TP. Ho Chi Minh, Long An and in Lao PDR.

Interviewing with Investment Newspaper, General Director of Tan A Dai Thanh Group, Mr. Nguyen Duy Chinh did not hide his pride when sharing that, from the products that entered the market at the beginning, which were water tanks, up to now, the Group has in hand a portfolio of more than a dozen key products serving people’s daily life, significantly contributing to the Group’s annual sales increase.

“It is a whole journey of constant striving of the Board of Directors and more than 5,000 employees, especially the R&D team, the team of consultants, helping the Group to always take advantage of opportunities, invest and own the most advanced production technologies, ensuring the supply of products that meet the strict standards of the domestic market and numerous import markets that require high standards such as the US and Europe…”, Mr. Chinh said.

Tan A Dai Thanh Group is constantly improving its production line to be able to bring consumers the best quality products. Since 2012, the Group has signed many cooperation contracts to supply these product lines to markets in Asia, Europe and North America. This is considered a big step in affirming the brand position not only in the country but also in international markets.

More and more shipments of water tanks, plastic pipes, sinks, water heaters … branded Tan A are going beyond the border of Vietnam to the markets of Asia, Europe and North America. Long-term business goals have also prompted the Group to establish a member company in Vientiane (Laos).

Products Solar water heater is about to be distributed to the market.

In addition to the traditional products, in recent years, the Company has launched many new product lines such as high-class interior and exterior paint IPaint, high-class bathroom sanitary ware with high quality, beautiful designs in accordance with the tastes and styles of Vietnamese consumers.

As a manufacturing enterprise in the field of metal household and water equipment, with fierce competition from domestic and foreign competitors, the Group’s view is to go fast but firmly, with a mission to bring the most satisfaction to customers. This is reflected in quality products, competitive prices and, above all, in spending budgets on investment in modern equipment lines, product development, catching up with countries around the world to produce products that can compete in any market.

In the past 5 years, the Group’s R&D department has come up with many solutions and technical initiatives in production to improve product quality, product designs and develop more new products that suit consumer tastes, and at the same time saved production costs of billions of dong, for example, by creating a system of finishing stainless steel tanks which not only reduces the amount of labor, saves time and costs, but also helps to increase the productivity.

Stainless steel water tank, the “classic” product of Tan A Dai Thanh Group

The appearance of stainless steel water tanks in the past 30 years on the market, including millions of water tanks with Tan A brand, has completely changed the consumer trend. Not only that, stainless steel water tanks were born, completely replacing the traditional cement water tanks in every family, especially in large construction projects.

The roofs with the dark green color of the cement tanks have almost disappeared, instead of the roofs with sparkling colors from generations of stainless steel water tanks manufactured by hydraulic presses, automatic roller welding technology. A large part of this market share is held by Tan A Dai Thanh.

After the success with civil stainless steel tanks, Tan A Dai Thanh Group has taken another step forward to research and produce industrial stainless steel water tanks with a capacity of 30,000 liters, industrial plastic water tanks of 10,000 liters and industrial solar water heaters of 5,000 liters – the largest in the market, serving in large-scale construction projects, factories,… This product is not only strongly consumed in the domestic market but also exported to many countries around the world.

Talking about water tank products – the traditional and key product of the Group, the Group’s General Director, Mr. Nguyen Duy Chinh said that, up to this point, Tan A Dai Thanh is proud to be the largest manufacturer of water tanks in Vietnam. By the end of May 2017, the Group’s stainless steel tank products achieved a market share of up to 70%, hot water products accounted for 52% of the market share. Tan A Dai Thanh said that in 2017, Tan A Dai Thanh’s water tank market share is expected to increase by 90%, that of hot water tank by 70%.
Tan A Dai Thanh is also the first and leading unit in Vietnam to manufacture industrial water tanks from 10,000 to 30,000 liters.

Every day, the Group supplies about 1,700 water tank products to the market.

The Group has researched and successfully applied the stainless steel tank finishing system, contributing to the timely supply of market demand. Thanks to high-class and imported input materials, the application of automatic roller welding technology – the most modern technology in the field of stainless steel tank production, the product keeps bright, shiny and has outstanding durability.

Maintain the leading position

Tan A Dai Thanh Group is about to turn 25 years old with many notable achievements, which is the trust of consumers, an important foundation for the Group to continue to grow in production and business, with the aim to become a leading multi-sector economic group in Vietnam and internationally.

However, besides the above-mentioned outstanding results, Tan A Dai Thanh still has challenges to overcome and these are also valuable opportunities for the Group to continue affirming its leading position in the metal household and water equipment industry.

This is also acknowledged by Mr. Chinh, the market is having fierce competition in the fields and industries that the Group is focusing on. This fact makes us need to promote the diversification of product lines and brands in a short time, and with that comes the pressure of implementation time as well as financial and human resources, technology capacity.

“The economic situation at this time is a breakthrough opportunity for businesses with potential competition. Tan A Dai Thanh Group sees this industry as promising business when the market demand for most of the products that the Group is distributing and producing is very large and increasing… Investment to expand scale, supply capacity has been actively deployed by the Group…”, Mr. Chinh added.

According to the investment plan and market share expansion, Tan A Dai Thanh Group continues to develop orientation to become the No. 1 corporation in Vietnam distributing household metal products and water equipment.

Specifically, for products manufactured by Tan A Dai Thanh Group, the Group continues to improve product quality, invest in research new and high-quality products, and at the same time reduce costs to serve all customer needs.

In addition, building a team of qualified professionals, good ethics, modern working style in an effective and professional working environment.

The investment to expand production capacity to catch market opportunities in the new period has also been started. At the end of 2016, the Group started the Tan A Ha Nam Factory Project with a total investment of 500 billion VND, focusing on producing 3 main products, including: 1.5 million water heater/year, 300,000 solar water heater/year, 800,000 RO water purifier/year.

This is followed by the investment plan to upgrade Stroman Vietnam Factory (Phase 2).

The German standard Stroman Vietnam plastic pipe factory was inaugurated in phase 1 in May 2016 with a total investment value of USD 35 million.

Stroman factory is invested in construction and equipped with synchronous production lines according to German standards.

The investment project on equipment for the production of industrial plastic pipes in phase 2 has been implemented and is expected to reach the market by the third quarter of 2017, Stroman Company will supply to the market HDPE industrial plastic pipes with diameters up to 630 mm, 400 mm diameter uPVC for high-rise projects.

In parallel with continuing to improve traditional products to create competition in quality and price, the Group always grasps short-term and long-term consumption trends to orient the development of new superior product lines. Especially, a number of new products recently, such as the high-end Rossi water heater, have been trusted and chosen by many consumers, affirming competitive advantages over imported product lines.

With more than 24 years of experience, long-term vision and right development orientation, Tan A Dai Thanh will continue to pursue its principles and goals, increase the quality of the Company’s products, increase the coverage of the product in the domestic market and reaching out to many new export markets.

More than 24 years on the way of carrying out the mission of “Prosperating Vietnamese life”, Tan A Dai Thanh always strives to produce quality, convenient and aesthetic Vietnamese-branded products, replacing imported ones.

According to Dau Tu Newspaper