Tycoon marks 6oth anniversary of family's Siam Motors
Phornthep Phornprapha, who was ranked by Forbes as the 17th-richest person in Thailand this year, said yesterday that Siam Motors Group would continue to focus on its core businesses, especially automobiles and machinery.
On the occasion of the group’s 60th anniversary, Phornthep, son of the company’s founder Thavorn Phornprapha, said he was proud of his family’s business empire that now enjoys a total turnover of more than Bt100 billion annually. Siam Motors Group was appointed as the first foreign distributor of Japanese carmaker Nissan.
"We will not diversify to other businesses. Our expansion is to be related to our core businesses – automobiles, auto parts, machinery used in the industry, and musical instruments, as well as hotels and golf courses," Phornthep said.
He explained that the Siam@Siam hotels and golf courses in Pattaya were just properties developed on the family’s own plots of land.
He added that the group had expanded production of various auto parts with sophisticated technology. The move is partially in preparation for full liberalisation under the Asean Economic Community, which will take effect in 2015.
Phornthep has managed the family business prudently by focusing on automotive and related businesses and cutting off non-core ventures.
In 1990, under his management, all 11 of the family’s companies showed impressed performance, with total sales revenue of Bt5 billion, up 20 per cent year on year.
When Phornthep was assigned to oversee Siam Motors, he reshuffled its distribution channel by changing the Nissan branches into a dealer system.
He also cut losses by selling such non-core businesses as hire-purchase debts to finance companies. Luckily, his mission was complete before the country’s financial crisis in 1997.
He also shocked the market by selling shares in Nissan Motor (Thailand) to Japan’s Nissan Motor, bringing the Japanese carmaker’s shareholding up to 75 per cent. Siam Motors held the remainder. Phornthep knew it would be harder for him to undertake marketing in the intensely competitive Thai auto market if Siam Motors remained the majority shareholder.
After that, Phornthep turned his focus to auto parts and other automobile-related businesses such as GS batteries, sophisticated choke-ups,?? as well as Komatsu cranes, Daikin air-conditioners and Yamaha musical instruments.
Phornthep, 65, said he was almost ready to retire, letting his three children take care of the family business. Pranapda, the first daughter, takes care of Siam Motors Sales (Thailand) – passenger cars. Pranithan, the first son, oversees marketing of Komatsu cranes and Prakasith oversees auto parts such as choke-ups, Siam GSS Sales, GS Battery and NSK Bearings (Thailand).
Phornthep said the government’s policy to promote the automobile industry was on the right track.
"Car output is most likely to hit 3 million units over the next few years. If infrastructure, human resources, English-language skills and upstream steel manufacturers are also supported by the government, the outcomes will be greater than expected," he said.
