PTG aims for eight core businesses to become world’s ‘megatrends’
CEO Pitak says PT intends to increase profits from its non-oil business to 50 per cent by 2026 and expects oil sales to grow by 8 to 12 per cent
PTG’s five-year plan comes with a clear goal to transform its oil and non-oil businesses into co-creation of an ecosystem of sustainable businesses in which customers will have a better quality of life with products and services in PT’s network, CEO Pitak Ratchakitprakarn said in a press release.
The group’s eight main businesses will play an important role in supporting growth. They are:
1. Oil and gas
2. Food and drink
3. Offline to online retail
4. Logistics and supply chain
7. Digital platforms (financial and lifestyle)
8. Renewable and clean energy.
These businesses will become the world’s “megatrends” and will increase profit from the company’s non-oil business to 50 per cent by 2026, Pitak said.
The CEO said the firm is moving its business to a co-created ecosystem with its partners.
“The company expects to have 268,202 touch points in five years, or 2,694 oil stations and 265,508 non-oil touch points,” he said.
Pitak explained that the firm has 2,114 oil touch points, both online and offline, and other touch points such as 200,000 “Pa-tour” points of interaction with customers. He expects 60,000 grocery stores and 3,000 coffee shops to join as partners.
The company also expects 10 billion points will be redeemed while the number of members will increase to 30 million, both online and offline. Online members account for 25 per cent presently.
Furthermore, the company intends to also become a digital platform so customers can conveniently use its services.
PT, he said, would connect with other services, including financial, auto insurance and lifestyle.
In the future, the firm aims to expand to foreign countries and might become a global one eventually, according to Pitak.
“The company expects to invest 1.5 billion to 2 billion baht yearly on its non-oil business to reach the target. It will add more branches and touch points, including teaming up with partners, jointly investing with other companies, or investing in start-ups, Pitak said.
“Every business will be operated under Max World, in which we currently have 17 million members. Last year, we had 14.5 million and we expect to see 20 million this year,” he said.
Max Ventures is its affiliate in driving middle- and long-term investment by investing in projects such as Nex Pharma and Pavitree. It has also invested in 360Truck, a platform that matches available trucks with employers.
“The company looks forward to the growth of these platforms so Max World will be stronger and become an enabler to help other businesses grow,” Pitak said, adding that it would also create new businesses for the firm.
“The company expects its EBITDA to grow by around 15 to 20 per cent this year. It also expects the sale of oil to grow by 8 to 12 per cent from 5.02 billion litres sold at the end of last year. LPG sales are meanwhile expected to see growth of around 50 to 60 per cent,” Pitak believed.
“For the non-oil business, the company is determined to keep adding more branches because it is one of the key drivers. Non-oil revenue is expected to grow 80 to 90 per cent. We feel it will take 3-4 billion baht to add 80 to 100 petrol and gas stations and 1,572 non-oil touch points,” he said.
“PTG has a goal to increase its gross profit proportion of its non-oil business to strengthen the company. PTG’s affiliates will get listed on the stock exchange as planned,” Pitak affirmed.