This is part of the company’s expansion strategy in Southeast Asia and to increase revenue from international markets.

Wannipa Bhakdibutr, president of Osotspa Plc, said that Osotspa has a strong vision and a focused strategy to expand its investments in Southeast Asia, particularly in major markets that it views as having strong growth potential, including Myanmar, Laos, Cambodia, Vietnam and Indonesia. “Our move into Myanmar is based on the tremendous momentum in the country’s retail sector, which is showing strong annual growth,” said Wannipa. “As a result, Osotspa and Loi Hein Co Ltd, are jointly building a new beverage production facility to support our business expansion and meet the needs of customers in the country.” This is the company’s first production facility in Myanmar and expects to contribute to significant growth. “We believe it will allow us to achieve our goal of being the leader in the energy drinks market in Southeast Asiam” Wannipa said.

The new beverage production facility is located on 83 rai (approximately 132,800 square metres) in the Thilawa Special Economic Zone (Zone B). It will be operated by Osotspa Myanmar Co Ltd, a joint venture in which Osotspa Pcl holds an 85 per cent share and Loi Hein Co Ltd holds a 15 per cent share.

The project represents a total investment of Bt2.4 billion, funded by the proceeds received from Osotspa’s initial public offering, which took place in October. Construction of the new plant is expected to be completed and ready for operation in the fourth quarter of 2019, producing Osotspa drinks for distribution in Myanmar.

“We see a business opportunity to develop mobile banking and digital platform in Laos when 98 per cent of people use mobile phones. Currently, some 91 per cent still use cash for all transactions. This is a challenge for us to expand our mobile banking and digital platform in this country,” he said.

Currently, Banque Pour Le Commerce Exterieur Lao Public (BCEL) is the only bank in Laos offering the digital platform. The BCEL One mobile app allows customers to transfer funds between accounts, pay utility and phone bills, pay taxes, and more, right from their own mobile phones.

“I use BCEL One Mobile app to transfer money for goods bought at the market as it is easier and it also helps pay all bills. If KBank provides the same service that will easy for me to use,” Phornprasert Suwandara, one of customers visiting a KBank branch in Vientiane, told The Nation recently.

Pattanapong added that the bank is studying the prospects for providing the mobile application and digital platform including QR Code payment in Laos. The company has applied for a licence.

“The Lao government also has the goal of making the country a cashless society. So, this is the right time for the bank to apply and provide the mobile application and digital platform,” he said.

KBank registered in Laos as a locally incorporated institution in 2014 with a registered capital of Bt1.2 billion. It opened its first branch at Pone Si Nuan in 2014 and also its headquarters at Lane Xang Avenue, Vientiane in 2017. The company plans to increase its registered capital to Bt2 billion when the Laos government implements its new bank and finance act, which may be passed at the end of this year or the next year.

“When the new act comes into effect, all banking and finance institutions in Laos will have to have a minimum registered capital of Bt2 billion within five years of the act coming into effect. We will increase our capital following the act,” Pattanapong said.

Since establishing its business in Laos, the company has enjoyed double-digit growth in revenue and net profit due to the country’s strong economic growth.

In 2018, the targets for loans, deposits and trade finance transactions are Bt2.4 billion, Bt1.6 billion and Bt13 billion, respectively. As a result of efficient risk control and management, there is no non-performing loan. The company is targeting total revenue of Bt100 million and net profit of Bt10 million at the end of this year, up 10 per cent year on year.

Meanwhile, the company also aims to bolster loans to Bt3 billion, deposits to Bt2 billion and trade finance transactions to Bt18 billion in 2019. It expects double-digit growth in total revenue and net profit, he said.

KBank’s lending structure in Laos consists of diverse customer groups, namely the government sector (33 per cent), agriculture (19 per cent), construction (15 per cent), commerce (10 per cent), transport (10 per cent), hire-purchase (8 per cent) and food and beverage (6 per cent), respectively. Lending portions to local, government and Thai business sectors stand at 38 per cent, 33 per cent and 29 per cent, respectively.

“Our business expansion in Laos will follow three strategies: opening branches or offices in the form of locally incorporate institutions (LII); foreign bank branches (FBB); and representative offices,” he said.

Currently, the bank has established LIIs in Laos and China, a branch in Cambodia and representative offices in Indonesia, Myanmar, Vietnam and Japan, as well as a strategic partnership with Bank Maspion. The other two strategies are the expansion of the digital platform, focusing on providing services via digital channels, and the establishment of strategic partnerships with local financial institutions.

Laos is one of the most important targets to enhance a service linkage under KBank’s strategy to create a service network in this region, Pattanapong said.

KFC expects to by year-end achieve double digit sales growth and to reach a historical record-high of 75 new stores, 39 per cent above the original target of 54 new restaurants,

The brand is now positioned to defend its status as the largest restaurant chain in the country, with a total of 701 outlets nationwide as of this year, said a press release on Monday.

Waewkanee Assoratgoon, general manager, KFC, YUM Restaurants International (Thailand) Co Ltd (YRIT) said, “Yum Thailand has successfully transformed itself into a 100-per cent franchisor in only one year. Our organisation is now in a good shape with an effective structure so that we can expect the most efficiency within the entire business operation.”

As the brand guardian, Yum’s key role is as a brand guard-rail, creating marketing campaigns, providing guidelines, and supporting franchisees and business partners to keep up with the brand’s standards, said Waewkanee.

Yum will also assist franchisors in making a customer complaint recovery plan and to implement a crisis handling protocol.

“Through the collaboration with franchisors, KFC has been able to achieve not only the largest number of restaurants and the unique signature fried chicken, but also the distinctive and beloved brand that we are strengthening,” she said. “Throughout 2018, we have launched a series of exciting campaigns and promotions.”

The year’s branding campaigns included the Valentine’s Day Wing Zabb, National Fried Chicken Day, and the Colonel’s Birthday celebration. The year’s marketing campaigns included Chessy Fried Chicken, Kai Jud Yai spicy friend chicken, the disruptive promotion of Tuesday’s Value of nine pieces of fried chicken for Bt99, and the Zabb on Ice innovative ice-cream promotion that reached more than 48 million Thai people through both online and offline communications and gained massive engagement, said the release.

“As a market leader, we are dedicated to creating new and unique value to enrich customer experience,” said Waewkanee.

YRIT, the operator of the KFC franchise in Thailand, benchmarked its success through an ability to secure the No 1 position and top-of-mind QSR brand as surveyed by the county’s top business magazines, Marketeer and Brandage.

It was also named the most powerful and top engagement brand on social media by Zocial Awards as well as ranking in the top WOM brands mentioned among Thai’s millennials by YouGov2018.

As the largest restaurant chain in Thailand, KFC has served approximately 800,000 pieces of fried chicken daily or 292 million pieces per year.

As a franchisor KFC supports franchisees in their restaurant operations, but also provides them essential know-how to aid business expansion and profitability. Through their collaborative model and support, KFC expect to achieve 701 KFC restaurants in the chain by the end of 2018, 65 of them in the drive-through format.

Of the total, 258 KFC restaurants are being operated by KFC Thailand’s first franchisee, Central Restaurant Group (CRG), which this year opened 22 new restaurants. Another 273 restaurants are being operated by the latest franchise partner, QSR of Asia (QSA), which has invested heavily this year on store renovations at its 47 restaurants. Restaurant Development (RD), the fastest growing franchisee, recently celebrating its second anniversary as KFC’s franchise partner, and RD has experienced rapid growth from 130 restaurants in 2016 to 170 this year.

“With the expansion of urbanisation, it enables us to open more stores, especially using the drive-through model in more distant areas outside Bangkok that serve the needs of people in their community and passers-by like travellers, businessmen, etc,” said Waewkanee.

Expansion is targeted at establishing 1,000 stores by 2020, with at least 100 in the drive-through format.

“Our success does not come only from Yum, but also from our overall corporate franchise partners, which put together capital funds, innovation, and hard work to drive the highest new unit growth in the brand’s history in Thailand,” she said.

The result is that Thailand is now the eighth largest KFC market in the world as well as the fastest growing restaurant brand in Thailand, she said.

BASF is the world’s leading manufacturer of chemicals, which are used in almost all industries.

In an exclusive interview with The Nation, Dhruva, who took over as the regional president in July this year, pointed out that as president for the Asia Pacific region, his vision is to understand the growth prospects and opportunities in Thailand and the support of government and authorities to the local industries, particularly chemicals, automobiles and agriculture.

“We have seen good momentum going forward in Thailand and Asean. Production reached about 3.9 million vehicles last year. Automotive production in Asean is growing steadily, and 50 per cent of automotive production in the region is from Thailand. Thailand represents the largest coatings market within Asean followed by Indonesia and Malaysia,” said Dhruva.

He added that with an increasing number of automotive original equipment manufacturers engaging in production and technology development activities in Asean, there is also a growing need for local innovation in automotive solutions and products, as well as a high degree of technical services.

BASF has had operations in Thailand and Asean for more than 50 years. It began operations in Thailand in 1966. The company has three production sites – in Bangpoo in Samut Prakan province, Chon Buri and Rayong, and two technical labs for coatings and polyurethanes in Samut Prakan. BASF sales to customers in Thailand were worth around 508 million euros in 2017.

With 634 employees, the company offers to customers in Thailand agricultural solutions, automotive catalysts, construction materials, coatings, care chemicals, nutrition and health, industrial chemicals, performance polymers, polyurethanes, and performance chemicals.

“Thailand is a growing economy and a very interesting market, especially for agriculture and automobiles. We have made in the last year significant investments in the country. The opening of our mobile emission catalyst plant in Rayong province in the middle of this year will support the Thai government’s Eastern Economic Corridor [EEC] project, which covers 10 different industries in three major eastern provinces – Rayong, Chachoengsao and Chon Buri. The plant will also meet BASF’s automotive customers’ emerging technology needs in Thailand and throughout the Asean market, and help its customers meet stringent emission regulations, such as Euro V.”

Dhruva also provides support to the local and regional automobile industry with the inauguration of an automotive coatings production plant at its manufacturing site in Bangpoo.

It started operations in December last year. The new plant is the first BASF automotive coatings manufacturing facility in Asean, and will produce solvent-borne and waterborne automotive coatings to meet growing market demand in the region. It also complements the facilities at the Coatings Technical Competence Centre Asean, which was opened in September 2015 at the same location.

The technical centre includes a laboratory for product development, high performance application facilities, colour design, as well as a small batch production unit. The co-location of production and technical facilities enables operational efficiency and speed to market. The new plant’s design not only allows BASF to offer customised service, it also has the potential for future expansion and the flexibility to adapt to new production requirements and changing industry trends.

“The opening of such chemical plants is also in line with BASF’s strategy to support the growth markets with investments in the region,” said Dhruva.

He said that Thailand is a hub for countries like Vietnam, Myanmar, Laos, and Cambodia, where BASF operates and gets support from Thailand, not only on the production side, but also through an innovation and competence centre.

The company has a coating technical competence centre at its plant in Bangpoo, which takes responsibility in adapting products for the local industries and needs. BASF also has two innovation hubs in Shanghai and Mumbai, which provide support to the Bangpoo innovation centre as well as product developments in the region.

Dhruva said that Asean has small but important and fast-growing emerging markets like Vietnam and Myanmar. Vietnam is already a strong contributor to BASF in the Asia Pacific region. Sales to customers in Vietnam were worth approximately 328 million euros last year, compared to 245 million euros in 2016.

Meanwhile, Myanmar is a relatively new market for BASF. Its registered sales in Myanmar more than doubled to 9 million euros last year, compared to 4 million euros in 2016. The company successfully established its presence in Myanmar with the opening of a representative office in 2015 and inaugurated its first construction chemical production plant in May this year. Under the Master Builders Solutions brand, the plant produces standard and custom-made performance admixtures to meet the increasing demands for high-quality construction chemical products in Myanmar.

Dhruva said that the annual GDP growth in Vietnam was 6.51 per cent on average from 2000 until 2018. In the first half of this year, the economy also grew by 7.08 per cent and by 6.88 per cent in the third quarter. In spite of a slowdown in the second half, the government is confident of achieving its annual target of 6.7 per cent. Other than construction chemicals, the important areas of growth include paint and coatings, agriculture and automotive production.

Meanwhile, Myanmar has a potential GDP growth rate of between 7 per cent and 8 per cent or perhaps even more. As the country evolves, it offers great potential for various industries, including agriculture, mining, and construction, he said.

“Achieving sustainability at the same time is a big challenge for both Vietnam and Myanmar, but a major opportunity for chemistry. We are committed to helping our customers to be more successful by being close to them and by providing them innovations and solutions for a sustainable future,” said Dhruva.

Dhruva said that innovation also plays a vital role in the growth of BASF.

“Globally, 27 per cent of our sales is from accelerator products – those with the highest contribution to sustainability along the value chain,” he said.

Dhruva said that the company has already launched its new strategy, which aims for both profitable and CO2-neutral growth. Under the strategy, sales with products that make a substantial contribution to sustainability are expected to reach 22 billion euros in 2025.

“For example, in Thailand we have a successful joint venture with PTT Global Chemical Plc for the Fatty Alcohol Ethoxylate facility at the Eastern Industrial Estate in Rayong. At the plant, we have initiated the ‘heat recovery’ project to recycle the heat in our plant,” he said, adding that the project allows the plant to save up to Bt500,000 monthly or about Bt6 million a year.

“Our objective is to make our production sustainable,” said Dhruva.

BASF achieved 47.089 billion euros in total sales in the first three quarters of this year, with 5.7 billion euros as earnings before interest and tax (EBIT). The contribution from the Asia Pacific is currently at around 22 per cent.

The company last year posted sales at 14.3 billion euros and 2.2 billion euros of EBIT.

BASF has operations in 18 markets in Asia Pacific with 100 production sites and 125 sales offices. The company employs 18,256 people in the region.

“Our aim is to grow above the chemical market, which has increased by between 2 per cent and 3 per cent globally on average. Our growth is driven by investing in plants, products and people,” said Dhruva. “We look at every market and invest for growth and necessity,” he said.

Dhruva said that people play a very important role in the success of BASF. The company has good talents both in Thailand and Asia.