CEO OR “Disatat Panyarachun” announces Big Move plan After sitting in the chair for 4 full months, with the aim of creating synergies, business partners inside and outside the PTT Group, strengthening, creating a new OR, revealing that he is preparing to close a big deal, expanding the line of battle anew. service business outside the group “food and drink” Ready to send a new app “xplORe” as a mothership to create a digital platform of a parallel PTT Group, shaking the joint venture policy. stating that it should not satisfy only financial returns but must build business synergy Continue to bring all joint venture companies into the OR value chain.
Quick adjustment “cost control”
Disatat Panyarachun Mr The CEO of PTT Oil and Retail Business Public Company Limited or OR, who assumed the position of CEO of OR (the 2nd person) since December 1, 2022 after being on duty for a full 4 months, gave an exclusive interview. “Prachchart Business” for the method of managing and driving a business with an annual revenue of nearly 800 billion baht which
Having experience in international trading business (oil) since starting work The oil trading business will be very dynamic. must be alert all the time It will bring the experience in the trading business to strengthen. And what is considered very beneficial for OR is the issue of “cost control” because OR is already good at sales.
“An additional thing is trying to adapt quickly because the market changes very quickly. If it can adapt quickly, it will be able to manage costs better Bring a dashboard to use, which is to monitor each business group in detail. Which is profitable? Which group is less profitable? which group is losing will make the picture clear So, which business is profitable, it accelerates sales. Which is not good, you have to go in and fix it. It’s called having to retrieve information to see it. Otherwise it will be hidden. turned out to be no problem.”
For direction OR is to adapt from oil and retail to become more “oil free” because in terms of selling oil. The profit per liter is only 2% more, but it’s focused on volume, so it looks like a lot of profit. So, this one must be made strong. By focusing on improving the OR supply chain to be more efficient. adjust quickly because sometimes the cost has been adjusted The seller has not adjusted yet. going to sell dumping while the cost has not increased need to respond quickly
“A modern OR must be fast. He’s good already. But I want it to be better, better than having to put on the wings.”
Big move to new OR
For in terms of business expansion this year NEU is investing about 31 billion baht, of which 45% will be spent on lifestyle business, 22% on mobility business, 16% on international business and 17% on innovation.
Disatat continues that as part of the lifestyle business group OR has greatly expanded its business. more focus must be given Making investment clear That is, it must answer many questions, not only financial investment, but it must also answer OR’s value chain in other missions in order for OR to be as sustainable as possible.
“The amount of the company’s investment this year is more than 30 billion, about 45% is invested in lifestyle businesses. because it is a high margin business Although mobility is seen as a cash cow, more investment is needed. OR will not stop with food and drink Now it is expanding to other businesses In about 3 months it will be completed and launched This will be a new business that will transform into a new OR.
Create a new “OR space”.
Although it has not yet been revealed what OR’s new business is, OR’s CEO portrays it as a service sector startup. It is a joint investment with partners. which will be a big step to meet the long-term needs of Balancing your portfolio and will respond to Thai and foreign investors to see OR’s acumen in the new OR
said Mr Disatat Although OR is an energy seller. No matter how the energy changes, it still has to be an energy seller. Be it fossils, electricity, hydrogen, but some moments you have to challenge yourself. going out energy into the new OR space
Because going out into the food business alone may not complement OR’s charm. It is part of a plan to make OR more efficient and strong. Without fearing any competition with others, however, the core business must be strong, and OR will never lose to anyone.
Shake the investment model to strengthen
OR CEO added on the revised concept of investing with partners in various companies, “My mindset is not just hoping for a financial return on investment. but it must meet other missions as well.”
It means that the business that OR invests in must be extended to other businesses as well. Strengthening the value chain OR When investing and not being able to run an independent business, you have to find synergy from a partner chip. see which strategy What makes the company better to make an OR value chain a long value chain?
said Mr. Disatat At least the criteria for making a decision to commit to an investment Have to see how well it can cross with which business units. Not investing in the hope of financial gain. Or see it as a business trend in the future only But it must be able to be a value chain that is connected to each other. And he will next go to see the synergies with the business in the group. more PTT And if there is no business in the PTT group, then go to the third party.
OR the CEO explains that to partners Now is the moment when there are many people coming to offer. The decision whether to join the investment or not. Personally, there will be a principle that “If I invest my own money Will you buy it? If I say buy OR invest gradually But if you still say no Go buy it just to show off. it won’t answer the question.”
collective power to increase bargaining power
Mr Disatat added. for Amazon cafe which has a large network of branches is considered to have a lot of purchasing power So be a wise buyer. These days, it may be squeezed by some suppliers, that’s fine. But it must be adapted to be an adventure with the company I am a businessman so I have to adapt to opportunities. Or adapt some value chains from OR better. make the inside strong At the same time, in the partnership that OR invested in holding shares Have to see what needs to be adjusted.
“All our partners use Synergedd. Otherwise, you don’t have to be a partner, for example, OR has a full energy ecosystem. In the future, all our partners must use OR oil. This is the growth of a partnership. It is not that he has come to take advantage of us only. You need to see what his strengths are. What are our strengths?”
For example, NEU invested in Peaberry Thai Co, Ltd, owner of “Pacamara” coffee shop. It will bring Camara into the OR ecosystem, taking the strength of Cafe Amazon. That has a long and diverse supply chain to help bring Kamara, such as joint procurement of raw materials Pa Pakamara will benefit from lower costs.
“Because OR has strong assets, platforms, networks, locations and people expertise. Anyone who becomes a partner with OR is fine. But what do we get from partners in return? It’s a balance. This is homework. I have to do it.”
Adaptation of the “Pacamara” restaurant model
said Mr. Disatat For example, Amazon Cafe branches are considered quite large (4,126 branches). From now on, NEU will focus on expanding the “Pacamara” coffee shop, which is another segment. It is a specialty coffee with a higher price than Cafe Amazon. but lower than Starbucks
By remodeling, adapting the model, the store may not have to be big. Japanese coffee shop let teenagers want to enter in the business district office building Now an experiment is going to be conducted to open a new model branch. which is an investment by the company itself before expanding the franchise in the future
Introducing a new platform “xplORe”
said Mr. Disatat Innovation is OR’s other business unit, OR plans to launch a diverse innovation platform. It is an application called “xplORe” (Explore), which will be modified and launched in the middle of this year. with a database of 8 million Blue Card members
The challenge is how to use the database to be useful. Because the word database is important. Knows the behavior of customers who come to OR to do what they do, fill up the gas or come to drink coffee. or do something else know what coffee he likes customers must be impressed
In the future, AI must be used to help bring customer databases to make promotions. To be able to do direct marketing to all customers. to bring OR closer to consumers regardless of where That is, staying at home cannot be close to the physical platform, there must be a smart digital platform 9. to reach customers
“This app OR has invested a lot. Because the aim is to be a gateway customer for the PTT group, I have gained confidence for PTT group companies to use the OR app. In order to be a mother medium in creating a PTT digital ecosystem, for example, the EV Me app currently has, it must be in the same ecosystem.
Because the PTT group is forced to grow with the new S curve, find new businesses, find products, so enough to sell products. Instead of each using their own apps. have come to use the platform which is the largest ecosystem, OR.”
Building a digital customer ecosystem
said Mr Disatat the goal of OR That is, making it a large eco-system that meets all mobility needs, such as changing tires. Change the battery for repair, charge the EV, keep the queue in advance. Create intelligence, intimacy, and comfort. When the app is complete, it’s easy to cross with others, like going to Burn Point with other camps, without OR not stopping to fill the platform. to cover health and wellness, travel
including links to financial services By connecting to different banks such as money wallets and credit cards Which will continue to tie in with others to make it a complete platform. closest to people Currently, there are 7 million Blue Card members who will upgrade to Blue Plus.
“There are several stages to the development of this platform. Confident that we will definitely be a bigger ecosystem than others.”
Overseas business where OR is a retailer Going overseas is not easy. Don’t look at it as heaven. But it’s a grace. What we have to do is target countries like Cambodia, which is a very good growth rate. and they have logistics close to Thailand and have business PTT is enough Should grow up in Cambodia a lot
