Energy crisis, economic recession, people are serious, but OR is ready to pay 200 billion baht. Moving forward to buy business – joint investment with the policy “OR equals opportunity” creates opportunities for big capital to dominate the market. Increase power over competitors to monopoly business? while inequality destroys opportunities for small businesses in the way of their announced commitments to help the community.
Beginning in 2022, PTT Oil and Retail Business Public Company Limited (OR) has announced its vision and business direction. under the concept “Fill the opportunity for all growth together” or “Empowering All toward Inclusive Growth” or “OR = Opportunity”, which can be seen that OR has continuously acquired and jointly invested in various businesses by Ms. Jiraporn Khaosawad, Chief Executive Officer and President, PTT Oil and Retail Business Public Company Limited (OR) announced the establishment of An investment budget of 200 billion baht in 10 years (year 2020-2030) to sow money for entrepreneurs of all sizes.
But this year, amid the “energy crisis”, oil and gas prices have skyrocketed. affect people’s living expenses The cost of the operator’s products Inflation and dragging an economy that is already traumatized by the coronavirus has worsened. Investments that come from “profits” from the oil and gas trade. In many businesses that some are businesses that may be worth higher than reality and some businesses belong to the “capital” large entrepreneurs. It brings up the question now, OR = Opportunity. Whose opportunity does it belong to?
An important point, if considering the commitments of OR that previously stated that will aim to create energy security , and create sustainable economic growth through the oil business retail business and to be a good organization for society Operate a business with environmental impact management and participation in improving the quality of life for society and the community, but because to show the shareholders and partners that the vision “OR = Opportunity Such can be really tangible. seems to go once morest the The mission that OR has announced?
OR – Singha – Dusit Big capital opportunity to monopoly business?
Under OR=opportunity, there is an example of a joint venture where the question is, Ultimately, what does OR’s non-oil venture capital need?
In the case of OR, together with Phurit Bhirombhakdi, Chief Executive Officer of Boon Rawd Trading Co., Ltd., who operates beverage business under the brand “Singha”, which has a share of the beverage market in a proportion known as “the market leader” Signed an agreement to establish a joint venture company with a total amount of 400 million baht to operate a ready-to-drink beverage production and distribution project Between Modulus Ventures Company Limited (Modulus), a subsidiary in which OR holds 100% stake, and Boon Rawd Trading Company Limited
Analysts look at Joint investment of OR and Boonrawd, which is considered a “big capital” together. It will create WIN-WIN opportunities, increase the ability to earn profits for your own business. In the beverage market, Boon Rawd Group is one of the giants, each year earning hundreds of billions of baht, while OR as of June 30, 65, the company has a total of 2,473 gas stations both at home and abroad. Café Amazon, both domestically and internationally, with a total of 4,051 branches, is considered a strong point in product distribution and distribution channels that are advantageous to other competitors.
Of course, when OR offers an opportunity to Boonrawd big capital + big capital That comes with marketing that is ready to pay heavily, which means monopoly power over competitors. The beverage market worth more than one hundred billion should be affected without a doubt, especially “ready-to-drink beverages”, both production and distribution are in the hands of both. opportunity to lead “Monopoly business” in this market is likely to be high. At the same time, opportunities for SMEs, small entrepreneurs Expecting to enter the ready-to-drink market is almost closing the door for growth.
Following the recent joint venture with Boonrawd, Jiraporn Khaosawad, Chief Executive Officer and President, PTT Oil and Retail Business Public Company Limited (OR), also signed a joint venture agreement. In Dusit Foods Company Limited, a subsidiary of the Dusit Thani Group Another large capital by Modulus Ventures Company Limited or Modulus, a subsidiary of OR, invests 25% in an investment of 300 million, specifying the reason for the investment. To strengthen the food business both domestically and internationally
joint investment between OR and Dusit It’s no different from a joint investment model with Singha. while the Dusit Thani group Being the number one in the service business of the country and in the past has continued to expand investment in the food business that is connected to the main business It has high growth prospects and covers all supply chains. In this collaboration with OR, Dusit will gain “opportunity” to strengthen the growth of its food business, expanding into OR’s storefront market.
While the opportunity turned into a big capital like Dusit. from the benefit of OR Analysts worry that the capital giant’s M&A results will create even more disparities between large and SMEs, or small and medium-sized entrepreneurs. Big capital can easily take over the market share and accumulate profit from monopoly. Adding dominance over the market that leaves competitors unable to even compete.
Venture Capital investment sweeps Da
In addition to large capital such as Singha and Dusit, from the OR=Opportunity campaign, OR has also transformed into “Venture Capital”, has announced investments in several businesses, such as Vegetable Growing Because Rak Mae Co., Ltd., the owner of a well-known health restaurant. Oh Kajoo, which the reason sounds good is that “Oh Kao” grows vegetables by itself with an organic farming system. and delivered directly from a large vegetable farm in Chiang Mai, where the company is located. In terms of business, OR aims to expand more branches of “Oh Ka Ju” in PTT Station service stations, including food distribution. Grab & Go form via Café Amazon stores in Bangkok and its vicinity and the North.
while in terms of community expect that such investment This will support SME entrepreneurs and farmers who grow vegetables in an organic way to earn more income from having the opportunity to increase distribution channels through PTT Station and Café Amazon.
The question is, as of today, is there any practical effect like this? Because in the likelihood, only Ohkajhu’s vegetable farm has the opportunity, right?
Not only the food business, which can be understood that O.O.K. has a restaurant, OR has a storefront and space, but OR that has expanded its investment in the business was questioned whether. How is the business related to OR? How do you support OR’s mission?
as an example OR has invested in “GoWabi”, an application for booking beauty services through the fund “ORZON Ventures”, established to invest in startups. 25% in Kamu Kamu Co., Ltd., the owner of the brand “Kamu Tea” (Kamu Tea)
In the case of signing a share subscription agreement and a shareholder agreement between Modulus Venture Company Limited or Modulus, a subsidiary of OR and K-Next Corporation Company Limited (KNX), a washing machine distributor and industrial clothes dryers Including operating a convenience store business under the brand “Otteri Wash and Dry” by investing 40 percent in the amount of approximately 1,105 million baht.
In the first 6 months of the year 2022 OR has invested approximately 2,433 million baht through the granting of Modulus Ventures Company Limited (Modulus), a subsidiary in which OR holds 100% of the shares, is called Venture Capital, ready to pay all businesses. even though I still don’t know What is the future of those businesses? From changes in consumer behavior that are affected by the economy, just because OR clearly shows that Just any business that OR or executive thinks that there is the same business chemistry, OR is ready to create opportunities with every business?
PTT’s big challenge
OR is the flagship company of PTT Group in the oil business (Mobility) and the retail business (Lifestyle) and is a leader in the oil business. with a market share of almost 44%
PTT holds a large stake in OR, but it is well known that the vision of “OR = Opportunity” is Jiraporn Khaosawat, Chief Executive Officer and President of PTT Oil and Gas Company. Retailing Public Company Limited or OR. In the second half of 2022, it is expected that “OR = Opportunity” will continue unceasingly. At present, the company is in the process of negotiating with many partners. To invest both in the form of acquisitions (M&A) and joint ventures (JVs) in non-oil businesses.
At the same time, the results of the 6th period The month of this year (June 30), OR has total assets of 229,552 million baht, total revenue of 390,512 million baht, net profit of 10,412 million baht, which compared to last year, the whole year, the profit was 11,474 million baht, this year’s budget. Six months left, analysts expected. OR will more than double the profit from last year.
that means Recognition of revenue from oil business which is still the core business Combined with interest-bearing businesses that invest in other non-oil businesses or retail, there is a higher trend. However, OR = Opportunity is an investment vision that today clearly shows that OR is aiming for profit rather than giving back to society and community, according to its mission that it should be an organization that transfers profits from the oil and gas business. return or alleviate the cost of living for the people
Abandon the Amazon cafe model?
In the past, PTT has been successful with business commitments, helping communities and small people from the founding and building of the Cafe Amazon brand with a vision to be a coffee shop. the meeting place of the traveler at the same time The franchising model that offered the general public to be able to own with a small capital has given many to this day the opportunity to create entrepreneurial careers. With the number of branches with more than 4 thousand places where PTT owns less than 10% or regarding 400 branches, making it a model that supports PTT’s mission. Unfortunately, if this model is forgotten.
Under the management and vision, Jung OR today chooses to continue investing with large operators. Provide opportunities for investors who have a business in hand to have more opportunities to expand their business which when looking back Founding Cafe Amazon Compared to the investment in the case of OR investing 480 million baht to acquire a 25% stake in Kamu Kamu Co., Ltd., the owner of the brand “Kamu Tea” (Kamu Tea) is completely opposite. Kamuti bubble tea opened more than 11 years following With a name, it is open to sell franchise sizes to the general public. with more than 100 branches nationwide But for the investment of OR The opportunity for Kamuti’s existing franchise owners to expand their business by opening a branch in a gas station is greater. while Cafe Amazon offers more direct opportunities for the general public and the community.
What has happened to OR’s investment will allow large businesses to have more monopoly power in the market to take advantage of their competitors. At the same time, those enterprises have the potential to determine whether the price of goods and services will go up or down to occupy market share. Moreover, the transfer of profits from businesses or community enterprises where OR is located is likely to be an intermediary. Concentrated in the major capital groups, leading to the accumulation of capital of large entrepreneurs and eventually becoming a monopoly.
Is this creating opportunities for community enterprises? OR = Opportunity Whose opportunity? Big capital, shareholders and executives, right? Of course, the people who get the opportunity and benefit from the investment of OR are definitely not the people, consumers and small entrepreneurs.
This is a big problem for PTT as a major shareholder of OR. What do you think and how to fix it? The income on the tears of oil and gas users who have been dimmed into the hands of “big capital” with profitable opportunities and business monopoly. yes is the requirement PTT as well? Is it the New-S-Curve going this way?!
