PTT invests THB6 billion for expansion in ASEAN

Thailand’s energy flagship, PTT Plc, said it will set up 60 integrated service stations in Laos within five years as part of its THB6 billion (US$195 million) program that will make it a top regional petrol brand. The company’s first PTT Life Station outside Thailand was recently inaugurated in Vientiane in Laos.
“The PTT brand is being developed as a leading brand to serve the upcoming ASEAN Economic Community in 2015,” said President and Chief Executive Pailin Chuchottaworn. “Thailand’s neighboring countries and the ASEAN region are considered a market with vast potential for PTT’s business expansion to become a leading Thai multinational company,” he added.
 
The company plans to launch more integrated stations in Laos as part of its pilot retail investment in neighboring countries. Laos was chosen because of its high-potential market, as well as its land links from Thailand to Vietnam, Cambodia and China. All of these countries have healthy growth rates, especially China with its 1.5 billion inhabitants.
PTT aims to become the second-largest retail oil player in Laos with a market share exceeding 15%. Its current sales volume is 150 million liters a year. Pailin said the company is also keen on investing in Myanmar and the Philippines, which have good growth prospects, and will use its THB6 billion (US$195 million) investment to develop retail oil markets in the ASEAN region from 2012 to 2017. THB8 million (US$26 million) is for earmarked for increasing the number of service stations in Laos to 60. Currently, PTT ranks third in the retail oil business in Laos where it has a market share of about 12.5%, after Lao State Fuel Company and Petro Vietnam. “PTT’s policy is to invest in the retail fuel business in ASEAN more explicitly, aiming to become a top-three brand not only in the oil and lubricant segment but also in other activities at service stations, such as Cafe Amazon and Jiffy convenience stores,” Palin explained.
Saran Rangkasiri, senior executive vice-president, laid out the company’s plans in other countries in Asia: “PTT will expand its retail oil network in Cambodia from 14 stations to 45. In the Philippines, it will expand from 50 units to 130 to become a top regional brand. Last month, PTT signed a memorandum of understanding with Myanmar partner Denko Trading Co. to study business opportunities there. Denko operates 15 petrol stations in Yangon. PTT will need five months to complete a feasibility study in Myanmar.” (October 30, 2012)