Bangkok--16 Feb--Central Retail Corporation
The business of Central Group of Companies has been managed by Thai people of the “Chirathivat” family for over 60 years, starting off as a small grocery shop and growing over the years into the 5 Core Businesses of today encompassing Retail Business, Real Estate, Trading & Marketing, Hotels, and Food with a total annual sales turnover exceeding 100,000 million Baht. Business of the Group has always been conducted with integrity, transparency and fairness. Leadership of the business has been subject to restructuring from time to time to best cope with the ever changing business environment, thus enabling the business to continue to grow and flourish in a steady and sustainable manner. Recently, in the midst of the global economic crisis along with the need for the business of Central Group to continue to expand efficiently, both locally and internationally, the Executive Committee was restructured into a newly created CEO Management Board (CMB), essentially comprising the keen younger generation of our Core Business CEOs who already possess savvy and experience, to unleash their full potential in jointly managing the 5 Core Businesses of Central Group, under supervision of a Supervisory Board (SB), also newly set up. The CMB comprises Mr. Sudhitham Chirathivat as Executive Chairman and 7 other Executive Directors in charge of the Core Businesses of Central Group as follows.
- Mr. Tos Chirathivat, CEO of Retail Business (CRC)
- Mr. Kobchai Chirathivat, CEO of Real Estate (CPN)
- Mr. Pichai Chirathivat, CEO of Trading & Marketing (CMG)
- Mr. Gerd Steeb, CEO of Hotels (CHR)
- Mr. Thiradej Chirathivat, CEO of Food (CRG)
- Mr. Suthilaksh Chirathivat, CEO of Central Group’s Land Bank
- Mr. Prin Chirathivat, CFO responsible for Financial Management of Central Group
The working principles of CMB
The CMB underscores working as a team in the best interests of the Group, with cooperation and unity under corporate governance. This entails decision making by consensus, personal dedication of all individuals working for the Group, with transparency, ethics, moral duty, integrity, fairness, and clear conscience with regard to society and the Group, free from any conflict of interest. The main policies are as follows.
Business strategies (Long-term)
Focus on branding as key strength, create values for business, seek out strategic alliances that encompass enterprises in both the public and private sectors, prepare a business plan that suits the circumstances and established objectives, while building and pursuing corporate governance in conducting the Group’s business.
Key Missions
Create business potential and best practice, create a good social image so that the organization develops into an institute that is well recognized both domestically and internationally with such solid reputation that it becomes an icon of Thailand.
Human Resource Development
Create special talents at the high level and prepare future leadership who will be responsible for the business.
Corporate Social Responsibility (CSR)
Corporate Social Responsibility is recognized as being an integral part of the business itself and so we shall see to it that our CSR activities for the benefits of society with regard to education, charity and the environment are effective and produce more tangible results. In addition, the Foundation for the Environment and Tiang Chirathivat Foundation will be activated to contribute to charities.
Business performance in 2009
1. Business Performance. In 2009, Central Group achieved a total sales turnover of 110,700 million Baht, which was 9% higher than the previous year though 1.6 percent lower than the target set at 112,500 million Baht due to the global economic crisis and domestic political state of affairs. Had the world economic situation been good and the political climate of Thailand more peaceful, Central Group of Companies would probably have achieved the 2009 sales target that represented 10.6 percent growth over the previous year.
2. Investment. Actual total investment in 2009 by Central Group of Companies was about 15,500 million Baht as against the target of not less than 19,000 million Baht (lower than target due to delays in construction and project revisions).
2.1 Retail Business (CRC) invested 3,950 million Baht, 25 percent of the total, mainly in the new CDS projects at Chaengwattana and Pattaya Beach, RBS Chonburi and Khon Kaen, HWS Rajapruek, and Taiwasadu Bang Bua Thong which was opened in late January 2010.
2.2 Real Estate (CPN) invested 8,700 million Baht, 56 percent of the total, in new projects viz. CentralPlaza Chaengwattana, The Office Tower at Chaengwattana, Central Festival Pattaya Beach, CentralPlaza Udon Thani, CentralPlaza Chonburi and CentralPlaza Khon Kaen.
2.3 Trading and Marketing (CMG) invested 170 million Baht, 1 percent of the total.
2.4 Hotels (CHR) invested 2,430 million Baht, 16 percent of the total, mainly in new hotels viz. Centara Grand Mirage Beach Resort Pattaya, Centara Grand Island Resort & Spa Maldives and Centara Grand Beach Resort Phuket.
2.5 Food (CRG) invested 250 million Baht, 2 percent of the total, in opening new branches.
3. Corporate Social Responsibility (CSR). As Central Group of Companies regards CSR as a key policy, all levels of the management and employees are required to recognize the importance of CSR as an integral part of the business. In 2009 some of the significant achievements were signing of well-wishing messages for Their Majesties on August 12th and December 5th, Do Good for Father Project dedicated to His Majesty, Renovation of Wat Patumwanaram Ubosot, “Love the Earth, Look after the Earth” Project on the World Environment Day, EU Grand Opening Project and EU Concert Project to motivate teenagers to care for the environment, “Plant 200,000 Trees in Mangrove Forests as Tribute to the 84th Birthday of the Kingdom’s Father” Project, Operation Smile Foundation Project for operating on children with cleft lips/cleft palates, Mini Marathon Project to encourage people to do physical exercise, gave blankets and life saver bags to help victims of cold weather and flood (in the southern region), and Lunch Project for Impoverished Children in Barren Areas.
Awards received from institutes and organizations
1. Khun Yuwadee Chirathivat, Managing Director of Central Department Store Co., Ltd., received “Cavaliere dell’Ordine della Stella della Solidarieta’Italiana” and a Shield and Certificate of Honour for “Distinguished Lady Executive in the Private Sector” from the Ministry of Labour and Social Welfare.
2. CPN received the Bronze Label (i.e. good level) Energy Efficiency and Environment Friendly Building 2009 Award for CentralPlaza Chaeng Wattana and Central Festival Pattaya Beach, ICSC Asia Shopping Centre Awards - Gold Award for Development and Design Excellence to Central World, under the category of Renovation or Expansion of an Existing Project, from 2009 ICSC Asia Shopping Centre Awards in Singapore, “Board of the Year Award 2008/09” by Thai Institute of Directors Association, its performance in corporate governance was assessed to be “Excellent” by the Thai Institute of Directors Association in conjunction with the Securities and Exchange Commission and the Stock Exchange of Thailand, and received “Certificate of Excellence” for investor relations from the IR Magazine South East Asia Awards 2009 at the Singapore Exchange.
3. Hotels (CHR). Spa Cenvaree at Centara Grand Beach Resort Samui won “Gold Spa Award” from the Ministry of Public Health upon reaching the standard set by the Ministry, Spa Cenvaree at Centara Grand and Bangkok Convention Center Central World won “Best New Spa Thailand” in Asia Spa & Wellness Festival 2009 Gold Awards, and 5 Centara Hotels/Resorts received Awards from Smart Travel Asia.com.
4. Food (CRG) Auntie Anne’s received Pretzel Perfect Leadership Award 2008, Brand Excellence Award 2008, Pretzel Perfect Store Award 2008 and Pretzel Quest Celebrity Chef Award
Business Plan 2010
Growing the business in 2010
1. M&A (Mergers & Acquisition). M&A is a key strategy that has helped catapult Central Group’s growth and success. The Group will consider complementary factors favourable to the business as follows.
1.1 Synergy. Synergy has helped to make business of the Group successful through fuller exploitation of the available resources, efficiently and effectively minimizing costs and expenses.
1.2 Value Added. After M&A, Central Group with its experience and know-how has managed to develop, improve, add value and eventually turn around projects to yield positive returns, for example Central Ratanatibet Project, Central World Project and Central Udon Thani.
2. Expanding the business internationally. As one mission of CMB in conducting business of the Group is to build up the organization to be an institution that is recognized both domestically and internationally, CRC has been planning to make business investment in the Republic of China to pioneer doing Thai retail business in a foreign country. The RPC was chosen because it is a large country with large population, continuously growing economy and a resemblance to Thailand in culture and customs.
Business Target of Central Group in 2010
Central Group estimates that business of the Group will grow by 7 percent with total sales turnover of 118,800 million Baht
Investment Plan In 2010 Central Group plans to invest a total amount of not less than 16,000 million Baht in various projects of the Core Businesses as given below. This exceeds the 15,500 million Baht investment made in 2009, as the economy is now beginning to recover.
1. Retail Business (CRC) will invest 5,000 million Baht, 31 percent of the total, mostly in new projects of RBS (Trang and Chiang Rai) and continuing disbursements of RBS Khon Kaen and Taiwasadu (Bang Bua Thong and Sukhapiban 3) plus investment on renovation of the various branches of every BU of CRC to keep their appearances ever modern, especially the closing of Lat Phrao branch for major renovation.
2. Real Estate (CPN) will invest 8,900 million Baht, 56 percent of the total, in such new projects as Central Festival Pattaya Beach — Hotel which is expected to open in the third quarter of 2010, construction projects in Chiang Rai and at Rama 9, plus the major renovation of CentralPlaza Lat Phrao that will need to be closed for about 6 months and requires a budget of over 2,100 million Baht.
3. Trading & Marketing (CMG) will invest 200 million Baht, 1 percent of the total.
4. Hotels (CHR) will invest 1,600 million Baht, 10 percent of the total, in continuing the Centara Grand Beach Resort Phuket project that will be open in the last quarter of 2010 and on renovation of the Hotel at Lat Phrao.
5. Food (CRG) will invest 300 million Baht, 2 percent of the total, in new Brands —Beard Papa’s, Cold Stone Creamery and Chabuton—and adding new branches.
Corporate Social Responsibility (CSR) will continue to be an important policy to be pursued in conjunction with the conducting of Central Group business. For the year 2010, Central Group will focus mainly on education, art/culture/historic buildings, the environment, and society. Important projects will include “Central’s Commitment to Development of Education”, “Central’s Inheritance of Thai Art and Culture”, “Central’s Protection and Preservation of the Environment”, “Central’s Voluntary Community Development” and “Central’s Natural Disaster Prevention”, for example.
Business success factors
1. The state of the world economy. If the global economy recovers from the crisis and does not worsen, the private sector should be able to make bold investment decisions.
2. The current restive political situation of the country affects confidence in business investment. All factions should strive to resolve this and prevent its recurrence in order to restore confidence for the private sector.
3. The Government stimulus package should be continued to create a favourable business climate for the private sector.