Thailand's leading oil and retail PTT Oil and Retail Business Plc. (OR) is gearing up for prolific international expansion as part of the company's new pursuit to become a leading provider of mobility solutions and lifestyle offerings in the global arena. With nearly $400 million earmarked for international expansion through 2025, OR set ambitious growth objectives for the next 5 years with focus on Asia.
For decades, OR has relentlessly adjusted its portfolio to make greater strides beyond the conventional oil business by employing its unique "Retailing Beyond Fuel" business model to better serve customers' needs in terms of mobility and future lifestyles. The company is now a truly diversified company driven by highly-acclaimed integrated mobility and lifestyle platforms with business network and affiliates in 10 countries across Asia.
As an established market leader in oil for over 40 years in Thailand and Southeast Asia, OR currently operates over 2,300 retail fuel station known as 'PTT Station' across the region, as well as wholesale oil business selling oil products, including LPG, diesel, jet fuel, fuel oil, gasoline, lubricants, asphalt, and others.
The company's non-oil assets include its flagship Cafe Amazon, now ranking as the sixth largest coffeehouse chain by number of outlets worldwide over 3,400 outlets in Thailand over 300 outlets across Asia; as well as several local and international food & beverage brands; Jiffy convenience stores; FIT Auto outlets; and space management at its fuel stations for rental and fee incomes.
"Over the last 10 years, OR has expanded business overseas by leveraging our proven successful business model of integrated oil and non-oil ventures at our fuel stations, said OR's CEO Jiraphon Kawswat. "Our next move for international business has been strategically devised to support our ambition to become a global brand. We planned to expand the presence of PTT Station across Asia by pursuing strategic partnership, acquisitions or joint venture with local fuel station operators. For Cafe Amazon, our approach is to seek competent local F&B business partners while customizing product and service to meet local people's preferences and leverage consumer data analytics to enhance customer experience."
"Fast growing regional markets in Southeast Asia like Cambodia, Laos and the Philippines, where we already have an established presence and become the leading player in oil market and F&B businesses, will continue to be our key focus. These markets are blessed with high expected growth in GDP per capita, number of passenger cars, consumer spending in F&B and demand for refined oil products, representing a significant room for future growth.
"New high-growth markets in Asia we aim to expand include China for Cafe Amazon and lubricant business; Myanmar for fuel storage terminal network and retail fuel service stations, commercial oil business and Cafe Amazon; and Vietnam, where OR opens Cafe Amazon outlets in partnership with Central Group, one of the largest commercial conglomerates in Thailand. We are also exploring new investment opportunity in Indonesia and India," Jiraphon added
OR's first retail fuel station in Laos opened in 2012. In 2016, the company launched Cafe Amazon franchise model in Cambodia and the Philippines as well as expanded throughout the region, including Singapore, China, Malaysia in 2019 and Vietnam in 2020.
The company now owns and operates 346 PTT Stations in the Philippines, Cambodia and Laos, 5 FIT Auto outlets in Cambodia and Laos, 304 Cafe Amazon outlets across 10 markets in Asia including Cambodia, Laos, the Philippines, Oman, Myanmar, Vietnam, China, Singapore, Malaysia, and Japan, and 100 Jiffy outlets in Cambodia and Laos.
Speaking out and sharing the experience of being a part of OR franchise program, Chan Vattanak, owner of Meeting Point, a branch of Cafe Amazon in Phnom Penh, Cambodia expressed that "OR's vision of 'Empowering All Toward Inclusive Growth' serves as a guiding light for us to conduct business with focus on our customers, community and society, for growing together in a balanced and sustainable manner. We pride ourselves in being a part in creating a better world by using biodegradable materials at our Cafe Amazon branch as well as, giving back the society by donating money and essential goods to help the community affected by the ongoing COVID-19 pandemic."
In 2021, OR opened new 43 new fuel service stations and 46 Cafe Amazon outlets overseas. (As of September 2021), OR's international unit generated 5.5% of total revenue, with EBITDA of 3.7%. Given a significant growth opportunity overseas, OR's EBITDA from the international segment is projected to grow from 4.9% of total EBITDA in 2020 to 13-15% in 2025.
OR targets EBITDA from international business to account for 20% of the company's entire business by 2030.