PTT Oil and Retail Business (OR) plans ambitious international expansion and venture capital investment to become a global player in mobility and lifestyle offerings
BANGKOK, March 14, 2022 /PRNewswire/ — Thailand leading oil and retail operator PTT Oil and Retail Business Plc. (OR) is gearing up for prolific international expansion and venture capital investments as part of the company’s new quest to become a leading provider of mobility solutions and lifestyle offerings on the global stage . With nearly $400 million earmarked for international expansion through 2026, OR set ambitious growth targets for the next 5 years with a focus on South East Asia.
For decades, OR has relentlessly adjusted its portfolio to better meet customer needs for mobility and future lifestyles. The company is now a truly diverse company, powered by popular integrated mobility and lifestyle platforms, with a sales network and subsidiaries in 10 countries across Asia.
Recently, the company defined a new vision: “Empowering all towards inclusive growth” to guide its future business direction and reinforce its objectives of business growth as well as the development of people and their better quality of life and a decent environment.
As an established oil market leader for over 40 years in Thailand and South East AsiaOR currently operates over 2,300 retail service stations known as “PTT Station” in the region, as well as wholesale oil businesses selling petroleum products including LPG, diesel, jet fuel, fuel oil, gasoline, lubricants, asphalt and others.
The company’s non-oil assets include its flagship product, Amazon Coffee, which now ranks sixth among coffee chains by number of outlets globally, with more than 3,600 outlets worldwide. Thailand more than 300 points of sale across Asia; as well as several local and international food and beverage brands; Jiffy convenience stores; FIT Auto sockets; and managing space at its service stations for rental revenue and royalties.
“Over the past 10 years, OR has expanded its business overseas by leveraging our proven and successful business model of oil and non-oil businesses integrated into our service stations,“ noted Jiraphon Kawswat, CEO of OR. “Our next step for the global market has been strategically designed to support our ambition to become a global brand. We plan to expand PTT Station’s presence across Asia by pursuing strategic partnership, acquisitions or joint venture with local gas station operators We have set up 2030 goals to expand market reach by adopting an asset-light model in 100 countries around the world and bringing at least 10 Thai brands to the World Scene.”
“Additionally, to remain relevant as a leader in this time of disruption, we have also directed our new investments into new businesses to complement and fulfill our mobility and lifestyle ecosystem. We recently co-created a fund Venture Capital – ORZON Ventures in partnership with 500 TukTuks, the local operating unit of US venture capital firm 500 Startups, with key investments in innovations and startups in Thailand and South East Asia. Our funding, coupled with our robust network and business platform, will allow promising start-ups (Series A – B) to experience the commercial viability of their business ideas, and their successfully implemented operations. will help us venture into a new area of rapid growth. businesses with an accelerated learning curve,” added Jiraphon.
Expand the presence of Amazon Café and PTT stations throughout Southeast Asia
OR’s approach to Amazon Café’s international expansion is to seek out knowledgeable local F&B business partners while customizing products and services to meet local people’s preferences and leveraging consumer data analytics to improve the customer experience.
“Rapidly growing regional markets in South East Asia to like Cambodia, Laos and the Philippines, where we already have an established presence, will continue to be our focus, given their expected strong growth in GDP per capita, number of passenger cars, consumer spending on F&B and demand for petroleum products. refined. We also aim to expand into new high-growth markets Burma, Vietnam and Indonesiaas well as wider Asia like China and India“, added Jiraphon.
OR now owns and operates 361 PTT stations in The Philippines, Cambodia and Laos5 FIT Auto points of sale in Cambodia and Laos318 Café Amazon outlets in 10 markets in Asia including Cambodia, Laos, The Philippines, Oman, Burma, Vietnam, China, Singapore, Malaysiaand Japan, and 97 Jiffy outlets Cambodia and Laos.
Given a significant overseas growth opportunity, the company aims for international business EBITDA to represent 18-20% of the company’s total business by 2030.
Creation of ORZON Ventures to fuel new S-curve growth
In October 2021OR has announced a partnership with 500 TukTuks to create the ORZON Ventures fund, with an initial investment of $25 millionand should increase to $50 million in the future.
The new venture capital fund actively seeks to invest in promising start-ups Thailand and neighboring countries with the aim of elevating regional start-up ecosystems and empowering them with the OR ecosystem and growing inclusively. Its investments focus on Series AB startups in energy, food and beverage, smart retail, mobility, health and wellness, information and travel.
ORZON Ventures recently closed investment deals with five fast-growing up-and-coming startups across diverse industries from both Thailand and South East Asia. These are Pomelo, a leading fast fashion brand and platform widely recognized for its unique “Tap Try Buy” concept; Carsome, a leading online platform for buying and selling used cars with end-to-end solutions for car dealers and consumers; Freshket, an online food supply chain platform for HoReCa businesses and consumers offering a variety of fresh and dried foods; GoWabi, Thailand leading platform for discovering and booking health and wellness services online; and Protomate, a hardware-AI startup focused on creating great consumer electronics products and services in emerging technology areas.
“Startup development will be a key growth engine to fuel our new mobility and lifestyle businesses over the long term. We expect the fund to support other startups through South East Asia by the end of 2022,” added Jiraphon.
SOURCE PTT Oil and Retail Business Public Company Limited