Metro Machinery tycoon started with Bt1

A single baht is the most important memory of Thongsai Burapachaisri, chairman of Metro Machinery Group, as it was in a sense the starting capital to set up his heavy-machinery empire and become one of Thailand’s best-known millionaires.
Thongsai’s business, which imports heavy machinery under the famous brand Caterpillar, is poised to achieve Bt10 billion in sales next year.
Thongsai and his company also own total assets of more than Bt100 billion, mainly in Bangkok and the East, primarily a land bank.
One baht has very little value now. But for Thongsai, or “The King of Tractors”, it changed his life when he left his home town in Nakhon Chaisi, Nakhon Pathom, for Bangkok in 1950 at the age of 16. That one baht also had meaning for him as that was his first wage payment working in a small printing house at Vorajak after arriving in the capital.
Poverty when he was young forced Thongsai to do many jobs to ensure his survival in Bangkok without any relatives to help him. Those hard times opened his eyes, making him think more in terms of business.
After World War II, Thongsai worked at many jobs, including cleaning old generators, selling cosmetics and lingerie, even washing cars. And he accumulated experience from all those jobs.
At the age of 20, Thongsai collected all his baht to finance a joint venture with a friend to buy an old truck to service fruit vendors and carry things.
One year later, they had to stop the business, as income would not cover the cost of repairs.
He sold the old truck and set up a new business focusing on foundries and machine shops despite lacking any skills or knowledge in this area.
After two years, Thongsai faced a huge loss and was arrested for failing to register the business. Finally, he and his friend had to shut down the operation with a Bt40,000 debt.
Doing business had allowed Thongsai to learn how to mobilise money from cooperative funds. After shutting down the foundry, he set up such a fund to get money for a new tuk-tuk business. The cooperative fund generated more than Bt20,000 to purchase one tuk-tuk, and he was the driver. After saving his money for years, he was able to set up a leasing business for 100 tuk-tuks.
The tuk-tuk business ran smoothly for three years, until the government announced the abolition of tuk-tuks.
Operators and drivers had |only one year to make the adjustment. The move reduced the |value of his tuk-tuks to scrap iron in a short time.
“At that moment, I thought I would die, as I was broke again. No one wanted to buy my scrap iron [tuk-tuks]. I had put all I had in my pockets into the business,” Thongsai said.
Falling down time after time did not discourage Thongsai from his strong intention to set up his own business.
He forged ahead with many careers, and his last business was as an importer of used cars and tractors from Japan.
In 1977, his dream came true when Caterpillar Inc, a well-known machine manufacturer and exporter in the United States, sought a new dealer in Thailand. Thongsai had to hire a foreigner living in Thailand at that time at the very high cost of Bt100,000 to translate his business proposal into English.
Thongsai was fully supported |by his Japanese trading part-|ner, who was the main Caterpillar dealer in Japan.
“My business plan [coincided with] Caterpillar’s philosophy, as it focused on after-sales service and parts,” recalled Thongsai, adding that he has held the contract as sole distributor in Thailand since then. The business has not been confined to Thailand but has also spread to China, Laos and Cambodia.
Like other businesses, Metro Machinery lost money during the financial crisis of 1997-98, a total of Bt1.82 billion.
The company had to undertake stringent measures such as laying off 300 staff, about 30 per cent of the total, for its survival.
The five important philosophies that Thongsai has concentrated on in his business are marketing, sales, maintenance, credit, and human-resource development.
Moreover, the businesses in China and Laos are growing well thanks to rapid development there in infrastructure, farming and mining.
At the age of 80, Thongsai still works at the office every day, and looks forward to the new head office to be set up on a 300-rai area on Bang Na-Trat Road, with a warehouse, assembly plant and maintenance centre.
“I’m very happy with my job. I can’t tell you when I will stop working, as I still enjoy thinking,” Thongsai said.