Cambodia in focus as PTT retail aims to expand international business
The retail business arm of oil giant PTT is expanding its international business, with a particular focus on Cambodia which they consider their second home, to support sustainable growth.
Disathat Panyarachun, CEO of PTT Oil and Retail Business Pcl (OR), revealed the company’s strategy and direction for conducting international business to enhance the strength of its operations. They aim to diversify their business, such as by selling LPG and asphalt, and expanding international operations with OR's partners, including K-NEX Corporation, the owner of the Otteri Wash & Dry convenience store brand, and Dusit Foods Limited, as well as opportunities to grow with partners in the region through various potential investments.
The goal is to more than double the earnings before income tax, depreciation and amortisation of the global business group to 15% of total in 2027, up from 7%, or 846 million baht in the first quarter of 2023.
For Cambodia, a country where OR conducts international business, it is like a second home, as there are still plenty of growth opportunities. As of August 2023, OR's Mobility business group operates 169 PTT Station branches and 7 product warehouses, along with the lubricant business PTT Lubricants. They have also invested in a joint venture to provide aviation fuel at a new international airport in Phnom Penh, scheduled to be completed in the third quarter of 2024. In the Lifestyle business group, there are 231 Café Amazon branches and 65 convenience stores. OR plans to invest in infrastructure to support the expansion of businesses such as oil and LPG warehouses, asphalt mixing plants, and explore opportunities in other energy-related businesses like Battery Swapping and EV station Pluz.
In the Philippines, OR has been conducting business since 1997. As of August 2023, there are 168 PTT Station branches, 4 oil depots, 17 Café Amazon stores, and PTT Lubricants sales, as well as aviation fuel sales at the airport.
In Laos, as of August 2023, OR has 54 PTT Station branches, 9 FIT Auto and Procheck automotive service centers for PTT Lubricants sales, 87 Café Amazon branches, 28 Jiffy convenience stores, and 5 Pearly Tea shops. They are also studying the cultivation and trading of coffee beans with local partners, focusing on Arabica coffee beans.
In Vietnam, OR has established a joint venture to operate Café Amazon stores. As of August 2023, there were a total of 22 branches. They are also exploring opportunities to trade coffee beans with local partners, focusing on the Robusta coffee bean variety. Additionally, they are continuing to seek opportunities for other businesses to grow in the future, such as LNG and LPG trading in Vietnam.
Moreover, OR plans to expand Café Amazon stores in other countries, such as Oman, with plans to open 4 more stores in the current year and 19 more in 2024. In Malaysia, OR has 2 Café Amazon stores this year, with plans to add 10 more in 2024. In Japan, OR plans to open 3 more Café Amazon stores in 2024.
"All of this stems from OR's commitment to expanding its business base to achieve success and acceptance in the global market by adapting the success of its business in Thailand to different countries by applying its expertise and experience. We study the appropriate business models for each country to achieve mutual growth with the community, society, and the economy in the region. We are also preparing their personnel to extend this success to other countries, both at the regional and global levels," Disathat stated.
