PTT banking on startups for expansion
PTT Group, the national oil and gas conglomerate, is gearing up for the production of smart materials and venturing into startups, the digital platform and electric vehicles as new businesses expected to contribute 5-10% of the company’s revenue within 15 years.
Chansin Treenuchagron, president and chief executive of PTT, said 3-5% of the company’s average annual profit of 100 billion baht is set aside for R&D to foster new businesses to ensure the firm’s sustainable growth.
“New technology and innovation meant to drive business will be the strategies for growth,” said Mr Chansin.
PTT aims to be a leader in digital transformation using innovative approaches and looking for new business opportunities based on its “Change for the Future of Thailand” strategy, he said.
The R&D budget will cover investment in both internal and external startups through its corporate venture capital arm.
PTT encourages employees to innovate, including helping them establish startups, and the company will cofound or invest with these employees through the “PTT Tech Savvy Agent” project.
In the second year of this project, 64 teams of 192 employees, or 5% of the company’s workforce, participated in the competition.
Three teams were selected for their potential ideas and business plans as new startups.
Each of the three will receive 120 million baht per prototype.
“Chosen startups need to have commercial potential,” said Mr Chansin, adding they need to help increase revenue for PTT.
The team taking first place is 3J, which pitched PTT media space, where existing advertising placards at PTT petrol stations and workplaces will be taken down and replaced with digital ones.
Digital advertising content will also be fine-tuned to match customers.
In second place is Triple-T team, with it Innaqua project, which features a technology to dress wounds made from bio-cellulose composite.
The global wound care product market is valued at US$8.46 billion. In Thailand it is expected to be worth 1 billion baht.
In the second quarter of next year, the product is expected to be introduced in hospitals, which would mark the first time PTT entered the hospital and healthcare markets.
Finishing in third place is PTT Hub team, which came up with the Smart Box idea, where pick-up boxes for online shopping are installed at PTT stations.
Smart boxes are to be installed at 1,700 PTT stations countrywide.
Mr Chansin said PTT is also embracing advanced technologies, such as artificial intelligence and the Internet of Things, to enhance its internal operations.