Starting with a single retail shop selling electrical appliances 32 years ago, Jay Mart has become a listed holding conglomerate engaged in retail IT, finance and technology, with business partnerships set to expand in order to foster synergy and drive growth.
The company has 20 subsidiaries and aims to achieve annual net profit growth of 50% over the next three years, with a 500-billion-baht market capitalisation by 2024, up from 200 billion baht at present.
Jay Mart also expects its subsidiaries to double to total 40 by early 2025.
"If our company fails to grab potential investments either through partners or mergers and acquisitions [M&A] within a year, we are at risk of falling behind others," Adisak Sukumvitaya, chief executive of Jay Mart, told the Bangkok Post.
A partnership ecosystem will be a key driver for the company's business success and its exponential growth target, he said.
"Don't engage in trial and error on things in which you have no competence or expertise," Mr Adisak said, reiterating that new investments and M&A deals with the right partners is the blueprint for the group.
The company also expects a leadership transition in 3-5 years as Mr Adisak aims to pass the torch to his son Ekachai, now deputy chief executive.
NEW BRAND PERCEPTION
On Oct 4, Jay Mart unveiled its new brand identity with the word "Jai", or heart, to reflect its passion in doing business.
Mr Adisak said the move aims to create emotional value for customers and change their perception of the group as it moves from a smart devices distributor to a tech investment holding company.
People still perceive Jay Mart as a phone and gadget shop, but the firm now has 20 subsidiaries with a market capitalisation of 200 billion baht, he said.
The new brand value comprises four core pillars of "H", consisting of "hands to do, heart to understand, head to innovate, and hope to inspire".
Jay Mart was founded with family in mind. J is derived from Juthamas, the name of Mr Adisak's daughter. A is drawn from Adisak and Y from his wife's name Yuwadee, while Jay is also the nickname of his son Ekachai.
Mr Ekachai, 33, was present as the firm unveiled its new brand identity.
He said jai is a core business concept for Jay Mart.
"A successful business needs heart, supported by passion, science, art and skills," said Mr Ekachai.
He said the new brand identity delivers emotional value for customers, ensuring that they benefit from a variety of retail services and financial products that were crafted with a clear understanding of customers' lifestyles.
"Jay Mart is a future-ready organisation. We develop innovation and empower our subsidiaries and affiliates to enable them to stay at the forefront of retail, finance and real estate businesses," said Mr Ekachai.
Mr Adisak said Jay Mart group is backed by a tech-driven ecosystem and it should be managed by a younger generation with related skills and management backgrounds.
PARTNERSHIP APPROACH
He said Jay Mart's business diversification must be conducive to synergy between its affiliates.
Diversification has propelled the firm's market capitalisation, which grew by seven times to 12 billion baht from 2009 to 2017. It surpassed 200 billion baht this year, Mr Adisak said.
Jay Mart has focused on driving synergy through its ecosystem during that period, he said.
The group's three core businesses are retail and commerce, technology, and finance.
Jay Mart's IT distribution arm Jaymart Mobile is the biggest contributor to group revenue with 70% of the total, followed by 20% from JMT Network Services Plc, which operates a non-performing debt management business.
Other subsidiaries include JAS Asset, a commercial real estate and retail space operator, which generates 7% of the group's revenue, and Beans and Brown Co, a coffee chain operator under the brand Casa Lapin and White Café, which contributes another 3%.
In 2021, Jay Mart entered into its largest partnership deal with BTS Group Holdings, which bought more than 300 million shares newly issued by Jay Mart for 10 billion baht. The purchase was made through VGI Plc and U City Plc, both subsidiaries of BTS.
VGI and U City hold 15% and 9%, respectively, of Jay Mart's total shares.
In July, Jay Mart engaged in a share swap worth 500 million baht with SET-listed renewable energy developer Gunkul Engineering.
The share swap was made directly between Mr Adisak and Gunkul board chairman Gunkul Dhumrongpiyawut.
This followed on from December last year, when both sides engaged in a share swap worth the same amount.
The partnership with Gunkul is meant to boost the distribution channel for solar rooftop solutions following a hike in demand, Jay Mart indicated.
Jay Mart also invested in SET-listed Buriram Sugar as it aims to expand its ecosystem to the northeastern province of Buri Ram.
Additionally, Jay Mart plans to invest in PRTR Plc, a recruitment and outsourcing company, expecting to build an ecosystem to support future growth.
PRTR plans to file for an initial public offering (IPO) with the Securities and Exchange Commission, and aims to list on the Stock Exchange of Thailand early next year.
SG Capital, a subsidiary of Singer Thailand, a hire-purchase service operator in which Jay Mart owns a 25% stake, is set to launch an IPO in November. SG Capital runs a car loan business.
40 SUBSIDIARIES
Mr Adisak said the company will forge ahead with its M&A plans next year, focusing on consumer-based business and tech-embedded financial services, with 20-30 billion baht in spending.
The company is in talks with four targeted firms for investment deals, he said.
"Acquiring some stake in firms or taking them over will be a key driver for the group to achieve the exponential growth target," said Mr Adisak.
The expansion of its portfolio of subsidiaries is not a cause for concern despite pressing uncertainties, he said. These subsidiaries have monthly meetings to gauge their performance and management.
Mr Adisak said Jay Mart is agile enough to adjust its business direction through the support of data analytics.
"Jay Mart expects to have 40 subsidiaries by early 2025," he said.
"Ten of them should be listed, either on the SET or the Market for Alternative Investment."
