Fuel station operator gets more mileage with new ventures
SPURRED on by a belief that innovation is vital for survival |in business, Chalermpol Petakbowonchai, managing director of Thai Rung Energy, has diversified his family business from a service-station operation to add lubricants and solar cells for lighting as new business lines.
Chalermpol, 38, said he came to realise that innovation and brand creation would help ensure the company’s growth. With a focus on adding value, he brought in the new lines under the Yukon brand.
For the lubricant product, the firm linked with a US-based based company to use its technology. Since then, Thai Rung has invested about Bt50 million in the lubricant business.
The firm outsourced production of the lubricants under an arrangement that ensured its standards would be met, while also outsourcing warehouse and logistics requirements.
Chalermpol said these arrangements meant the company could focus on matters such as research and development and marketing, while relying on outsourcing in areas where it lacked expertise.
“This strategy helps save time and human resources and lets the company focus its expertise on seeking customers,” he said.
With the new business lines established for two years, Thai Rung Energy achieved sales of Bt200 million.
Yukon lubricants are marketed to industrial plants, as Chalermpol believes it would be difficult to compete with established brands in the retail market. The company sends technicians to promote its products to technical staff at the plants. This strategy saves on marketing costs, he said.
Doubling sales
This year, the company expects to double its sales, with a plan to expand its sales coverage nationwide and tap the markets of Cambodia, Laos, Myanmar and Vietnam. It also has its sights on India and Sri Lanka, Chalermpol said. The solar-cell business line came about after Chalermpol saw the potential for products that could be used in lighting needs ranging from floodlights and spotlights to streetlights.
The firm is focused on ways to develop the product line using German solar technology.
The product line also fits with a growing awareness for energy conservation, Chalermpol said.
Yukon solar cells are easy to install, he says, serving both indoor and outdoor needs. Prices start from Bt2,500 for a set, rising to Bt20,000.
