As the dynamics of globalization and economy worldwide, PTT Public Company Limited (PTT) in the recent years has been trying to break out of its comfort zone, the energy business, by seeking new business opportunities apart from petroleum products, which would support the company’s future investment in line with New S-Curve strategy.
This hypothesis was clearer when PTT penetrated the retail business through PTT Oil and Retail Business Public Company Limited (OR). Nowadays OR’s branches have extended over the country, making a lot of revenue and profit to PTT and moreover, PTT is set to list OR on the Stock Exchange of Thailand (Spin-Off) by next year.
Same as the case of Café Amazon, from the coffee shop in the gas station to settling in the shopping center and soon after expanding to the international market.
Coronavirus outbreak and soon-to-become full-fledged ageing society have provided a great opportunity for PTT as people are more aware about their health, prompting PTT to further invest in healthcare business. PTT joined hands with the Government Pharmaceutical Organization (GPO) to build the cancer pharmaceutical factory, the first in Thailand that covers all types of oncology products.
And recently, the establishment of Innobic (Asia) Co. , Ltd. with an initial registered capital of not exceeding Baht 300 million and the capital increase to an approximated amount of Baht 2,000 million, respectively, which aimed to support the Group’s New S-Curve strategy: Life Science such as pharmaceutical business, nutrition business, and medical device business etc.
PTT also has its own distribution channel both domestic and overseas, therefore, the Group can choose business marketing whether in the form of B2B (Business-to-Business) or B2C (Business-to-Consumer).
Moreover, PTT can further the investment in the equipment and medical supplies business as it could witness synergy with the petrochemical and polyethylene (PE) business.
However, with the capacity of the company, PTT might prefer mergers and acquisitions (M&A) as it is faster in recognizing the returns.
But if PTT decides to settle its own manufacturing factory, there is no worrying about place and space.
This is just the beginning of PTT on the healthcare market road, so, from now on keep eyes on PTT’s new investment.