Pruksa seeks sustainable growth
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New COO banks on new management structure for 25% annual expansion
Making Pruksa Real Estate’s business sustainable is the first priority of Lersuk Chuladesa, who became the company’s chief operating officer on July 16.
“The company’s owners and CEO Thongma Vijitpongpun said they wanted Pruksa to see sustainable growth of 25 per cent a year. This is my objective, to do business under the new management structure designed by a management-advisory firm,” Lersuk said in an interview with The Nation.
He said he joined Pruksa Real Estate as an independent director last year after his contract as president of the Government Savings Bank ended in July 2012.
“Khun Thongma [wanted] me to lead the company’s management team, but I thought that being president of Government Savings Bank did not suit me to be the manager of a private firm immediately after the end of the contract with the bank. It takes at least a year to become [an effective] manager of a private firm.
“Khun Thongma then agreed to appoint me as an independent director for one year before appointing me to the management team. He said he wanted to step down from the business but before doing so he wanted to set up the structure to support the business’ growth in the long term,” he explained.
According to the company’s new structure, Thongma has continued to be president and chief executive officer covering business strategy and oversight. Lersuk is chief operating officer and acting managing director covering the company’s operations and supply-chain system.
The other five managing directors will oversee five segments of the residential market: detached houses, townhouses, condominiums, international business and special business.
Lersuk said the new structure would support business expansion for the long term because the five managing directors would focus on their own market segment to make them competitive with other firms.
He said he supported business expansion by designing the supply chain and logistics system to reduce operating costs.
“We have weekly meetings of top management that keep us updated [on each business segment]. This will speed us towards our targets and also solve any problems that arise immediately,” he said.
Lersuk said this structure would support business growth in the long term better than a one-man show could.
“I am one member of the team. When I do business, I have to ask for comments from the management team,” he said.
With the new management operation, Lersuk said Pruksa believed it could achieve its growth target of 25 per cent a year. In the first half of this year, it recorded presales of Bt22 billion after launching 33 residential projects. It also plans to launch 45 new projects including condominiums, detached houses and townhouses. They will be in Bangkok, upcountry and overseas.
New subsidiary
Last week, the company reported to the Stock Exchange of Thailand that it would set up a new subsidiary, PT Pruksa Real Estate Indonesia Co, majority-held by its subsidiaries Pruksa International Co, with 70 per cent, and Pruksa Overseas Co, with the remaining 30 per cent.
PT Pruksa Real Estate Indonesia Co has registered capital of about US$15 million (Bt468 million). This is part of Pruksa’s strategy to expand investment overseas after doing so in Vietnam, India and Maldives.
Pruksa Real Estate reported revenue of Bt9.12 billion and net profit of Bt1.4 billion in the second quarter of this year, up 32 per cent and 40 per cent respectively from the same period of 2012.
This boosted first-half revenue by 34 per cent to Bt15.46 billion and net profit by 33 per cent to Bt2.18 billion from the same period of last year.
