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OR aims to be model corporation of 21st century with inclusive growth

Shifting its business from oil trade to retail and lifestyle proves to be a big challenge for PTT Oil and Retail Business PLC (OR). But what’s more difficult is to move forward by collaborating with its partners for inclusive growth.

It is not easy for this large corporation as its mission is to do the transformation while taking into account the sustainability of human lives, communities and the world.

Over the past four years, OR has been under the leadership of President and Chief Executive Officer Jiraphon Kawswat. She is the first CEO of the company.

Jiraphon — who retires on September 30, 2022, when she passes the baton to the new CEO — says the company’s goal is to restructure its business to shift the focus from oil to retail and non-oil.

Business transformation

Established on July 1, 2018, OR has become the flagship company of the PTT Group dealing with the businesses of oil, retail, and food and beverage (F&B).

Despite its young age, OR is built on its experience of over four decades as a business unit of PTT. The company is financially strong, having both physical and digital assets. These resources serve as important capital in the company’s business shift from OR to RO, according to Jiraphon.

Among the company’s physical assets are 2,473 PTT service stations (2,100 in Thailand and 373 overseas), 2,183 7-Eleven and Jiffy convenience stores, 4,051 Cafe Amazon shops, and 13,000 SMEs. PTT Station controls the largest market share, with about 3.3 million users daily. There is also a spate of PTT LPG stations, Fit Auto and PTT Lubricants shops, as well as many LPG cooking gas businesses.

The company’s digital asset is the Blue Card, which has almost 8 million members across the country, with 60-65 per cent active users.

Another important resource is a workforce of over 1,700 and an executive team with long years of experience.

Jiraphon voiced confidence that thanks to these resources, OR has the potential to restructure its business from OR to RO by working with partners and growing together. This concept involved “outside-in” expansion for inclusive growth, which is contrary to the old “inside-out” style for exclusive growth.

“Our team’s mindset is to open to synergy from all elements involved. We have worked with many business allies and are always open to new business opportunities,” she said.

OR aims to reduce the size of its oil business from 75 per cent at present to 35 per cent by 2030, with the non-oil business (retail and lifestyle) increasing from 21 to 28 per cent. New businesses are expected to make up 24 per cent while overseas businesses expand from 4 per cent at present to 13 per cent.

Creating value for communities and environment

The CEO of OR said the assets are managed in response to four major missions — Seamless Mobility, All Lifestyles, Global Market, and OR Innovation.

Seamless Mobility aims to build 7,000 EV Station Plus charging sites for electric vehicles (EVs) for a seamless transition from petrol to electricity.

All Lifestyles offers goods and services that meet the demand of OR customers. A mobile application will also be available in response to the lifestyles of young people round-the-clock.

Global Market focuses on introducing Thai brands to the world market. New branches of PTT Station and Cafe Amazon will be available overseas, in addition to existing ones in 10 countries. Moreover, Thai-made products in the OR ecosystem will be sold at its overseas outlets.

OR Innovation creates a new unit called Orion, which is tasked with developing innovative processes, technologies and products for the betterment of society, communities and the environment.

Those missions are based on three indicators known as “3Ps” — People, Planet, and Performance.

The People indicator involves Living Community. And the goal is to improve the quality of life and living standards of 15,000 communities with more than 12 million lives in the neighbourhoods in and around OR’s business areas by 2030.

The Planet barometer involves creating a Healthy Environment by reducing greenhouse gas emissions. Among the measures are adopting and selling solar roofs and promoting the use of EVs and hydrogen power. OR sets the goal of achieving carbon neutrality by 2030.

Finally, the Performance indicator is about Economic Prosperity. The focus is on ensuring growth and wealth distribution for some 1 million people within OR’s ecosystem.

Joining hands and growing together

To expand the business by collaborating with its partners for inclusive growth, OR needs a new working model that comprises four steps — Engage, Enable, Enlarge and Empower.

“Engage” focuses on creating a partner community, finding the strengths of the partners and collaborating with them to grow together.

“Enable” involves collaboration between OR and its partners under the inclusive growth platform aimed at boosting the partners’ sales and increasing OR’s goods and services. For example, following OR investment, the Ohkajhu Organic restaurant chain was encouraged to supply healthy sandwiches to Cafe Amazon. The new product will be available at 80 outlets within 2022.

“Enlarge” calls for increased professionalism in the partners that are small and medium-sized enterprises (SMEs). They often have weaknesses in accounting, finance, taxation and personnel management that could undermine their growth.

“Empower” allows the partners the freedom to make their decisions so that they can achieve the common goal with OR. The companies in which OR invests may make an initial public offering (IPO) in the stock market or make a right offering for OR or other firms.

To ensure the success of this transformation from an oil-dominant business to a retail-dominant one, Jiraphon stresses that all the team members must change their mindset and the “tone from the top” must be set.

“OR has 1,700 personnel including board members. They must understand the changing situation and accept the change. Everyone must view the change as a fun thing and something challenging,” she said.

Regarding the “tone from the top”, executives of all levels and staff members in all units must relay the management’s policy to their team members to make sure that everyone truly understands and implements it in the same way.

Model corporation of the 21st century

The CEO says the company’s personnel must have the “OR DNA”, which comprises O for “ownership” and R for “relationship”.

They need to act as an OR owner by empowering the company’s partners, listening to them and providing help accordingly. Also, OR employees have to build a good relationship with the partners while having credibility and professionalism.

The OR team is determined to make the company a model corporation of the 21st century with a mission of creating value for the 3Ps — people, planet and performance, according to the CEO. The ultimate goal is the sustainability of human lives, communities and the world.

For Jiraphon, businesses should share so that they can grow together. “Those who are strong must lend their hands and improve the opportunity of the small ones.”

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