PTG Energy Plc, Thailand's second-largest fuel trader by sales volume, vows to increase its investment in the non-oil and gas business over the next five years to sustain growth in the long run.
According to chief executive Pitak Ratchakitprakarn, in the past the company used to splurge 60-70% of its annual investment budget to expand its oil business, but this year it will shift the lion's share of the budget to non-oil and new businesses, investing 2-2.5 billion baht and 1.5-2 billion baht, respectively.
Some 1-1.5 billion baht will be used to expand its oil business this year, said Mr Pitak.
The company expects to increase total coffee shops of both Punthai and Coffee World brands to 1,523 branches in 2023 and 5,138 branches in 2027.
The expansion of Punthai coffee shops will be mainly via franchises, with the majority at non-petrol station locations, focusing on Bangkok and adjacent provinces, tourist destinations and major cities, he said.
The company also wants to add new items to the menu and emphasise the delivery platform, said Mr Pitak.
He said the company will also expand its non-oil business via partnerships and joint ventures, co-creation and investment in startups.
"We can go fast if we go alone, but if we want to go far, we have to go together [with others]," said Mr Pitak.
Moreover, PTG wants to overhaul Coffee World outlets, creating a new image more appealing to customers, he said.
The non-oil business expansion is part of the company's strategy to transform from a traditional oil and non-oil firm to a co-creation ecosystem. This includes a shift from a vehicle-centric focus to customer-centric, as well as from a physical focus to online.
For the oil business, the company expects a 25% retail oil market share in five years with more than 30 million PT Max card members. PTG plans to continue expansion of its petrol stations to 2,206, while improving its service by increasing the number of "PT Service Masters" to 2,500 within five years, up from 200 at present, said Mr Pitak.
The number of PT Max Camp rest areas is projected to increase to 141 stations in 2027, up from 64 now.
PTG operated 2,149 petrol stations in 2022, 1,809 of which were company-owned outlets and 340 stations were owned and operated by dealers.
