PTG Energy, a prominent oil retailer in Thailand listed on the SET, has announced plans to invest between 6 and 7 billion baht next year to expand its petrol stations and grow its non-oil businesses, particularly the Punthai Coffee brand.
As part of its diversification strategy, PTG also operates in clean energy and has been managing Subway sandwich shops under a master franchise agreement since April. The investment will focus on adding 60 new petrol stations and renovating 100 existing locations, according to Chief Finance and Sustainability Officer Rangsan Puangprang. The company currently operates a network of 2,250 PT-branded petrol stations across Thailand.
Mr. Rangsan expects these expansions to contribute significantly to the company’s revenue, projecting double-digit growth in 2025. The company also attributes this optimistic outlook to its loyalty program, the PT Max Card, which has garnered a substantial membership base of 23 million cardholders.
In the coffee sector, PTG aims to increase the number of Punthai Coffee outlets to 1,300 by the end of 2024, up from the current count of 1,020. Mr. Rangsan revealed plans to open an additional 1,000 coffee shops in the coming year as part of an aggressive expansion in the coffee business.
PTG has taken steps to secure its coffee bean supply by entering into a memorandum of understanding with the Royal Forest Department, the Mae Fah Luang Foundation, and the state-run Bank for Agriculture and Agricultural Cooperatives (BAAC). This agreement supports hilltribe farmers in northern Thailand by encouraging sustainable coffee farming. These farmers are also incentivized to protect forested areas, as coffee plants require shade for optimal growth.
Mr. Rangsan noted that promoting coffee cultivation discourages deforestation for monoculture crops like corn and cabbage. As part of the agreement, forestry officials will designate suitable land for coffee cultivation, and the BAAC will offer loans to the farmers. The Mae Fah Luang Foundation will provide education on coffee bean varieties and processing techniques.
For the initial three-year phase, PTG plans to source Arabica beans from 30,000 rai of farmland, according to PTG’s CEO, Pitak Ratchakitprakarn. As demand at Punthai Coffee outlets increases, the company hopes to diversify its bean sources. Sales at these outlets are expected to rise by 30% this year, averaging 120 cups per branch per day, up from 90 cups last year.
Thailand’s domestic coffee bean demand is between 90,000 and 100,000 tonnes annually, though local plantations currently supply only about 10,000 tonnes. The rest is primarily imported from neighboring countries, such as Laos and Vietnam, Mr. Pitak explained.
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