Empowering synergy with subsidiaries to build well-rounded strength and propelling human capital and innovation development for sustainable growth
Ch. Karnchang Plc (CK) unveiled 2018 key growth strategy which focuses on empowering synergy between all subsidiaries in moving toward becoming leading comprehensive infrastructure developer of the Southeast Asia region. Combining diversified strength of human resources, leveraging innovations and technology and underpinning competitiveness locally and regionally, the company is keen to bid for the government’s infrastructure projects and set 2018 revenue target at Baht 30,000 – 35,000.
Plew Trivisavavet, Chairman of the Board of Ch Karnchang Plc (CK), said that “We have constantly adjusted our business strategy in order to lead the company towards the a strong and stable future. Building synergy between our subsidiaries is a key to generate a strong operating result and maintain leadership as comprehensive public infrastructure developer, including railway, road, energy and water. Bangkok Expressway and Metro Plc or BEM has gained a remarkable strength as a result of merging between expressway and electric train system businesses, while CK Power Plc, which engages in energy business in Thailand and abroad, and TTW Plc., a tap water producer and distributor, have constantly generated a strong revenue stream and stable dividend yields. These all contribute to our readiness to bid for the government’s new infrastructure projects.”
Supamas Trivisvavet, Chief Executive Officer, Ch Karnchang Plc (CK), revealed that “Our current backlog is Baht 72,000 million. In 2017, our total revenue accounted for Baht 37,730.68 million as previously planned, comprising revenue from construction and construction material businesses of Baht 35,922.81 million, with profit of Baht 1,810.01 million and gross profit margin of 7.89%; and revenue from other businesses of Baht 1,807.87.”
2017 was also another remarkable year for CK with the winning of several prestigious awards inclusing the ASEAN Outstanding Engineering Achievement Project Award from ASEAN Federation of Engineering Organizations (AFEO); ARE-QP Awards 2017 from Asian Network for Quality (ANQ) from the excellence in engineering and construction management of Xayaburi Hydroelectric Power Project; the Most Popular Stock Awards 2017 in the real estate and construction category for the fifth consecutive year organized by Kao Hoon Turakij Newspaper in collaboration with the Stock Exchange of Thailand and University of Thai Chamber of Commerce; and the ESG 100 Award for the excellence in environmental, social and governance initiatives. These awards reflected CK’s achievement in diversified areas including technology, construction engineering, business performance, good governance, and eco-friendliness.
All ongoing projects are progressing as planned, with update as of the end of 2017 as follows:
- MRT Blue Line Extension - Tao Poon – Bang Sue: (project management, project management, supply, installation, and test run of the M&E systems) is 27% completed
- MRT Orange Line - Contract 1 (Underground) – Thailand Cultural Center – Ramkamhaeng 12 is 4.20% completed
- MRT Orange Line - Contract 2 – Ramkamhaeng 12 – Hua Mak is 2.30% completed
- MRT Orange Line - Contract 5 – construction of depot and park & ride facilities is 3.60% completed
- Double track railway – Jeera – Khonkaen is 49% completed
- Motorway Contract 5: Pattaya - Map Ta Phut is 74.60% completed
- Motorway: Bang Pa-In – Saraburi – Nakhon Ratchasima Contract 3 is 11% completed, and Contract 6 is 36.80% completed
- For overseas project: Xayaburi Hydroelectric Power Project in Laos is now 85.30% completed
In 2018, the government is expected to expedite several infrastructure projects worth totally Baht 400,000 million, with examples as follows:
- MRT Purple Line – South (Tao Poon – Rat Burana) worth Baht 130,000 million
- Expressway - Rama III - Dao Khanong-Western Bangkok Outer Ring worth Baht 310,000 million
- SRT Double Track Phase 2 in 9 routes worth totally over Baht 400,000 million
- Motorway: Bang Pa-In – Nakhon Ratchasima with compensation of Baht 33,000 million
- Motorway: Bang Yai – Kanchanaburi with compensation of Baht 27,000 million
- Infrastructure project in the EEC including 220-km high-speed train project linking Suvarnabhumi, Don Mueang and U-Tapao airports worth Baht 200,000 million which will be procured as a public–private partnership (PPP), and CK and BEM are well-prepared to join the bidding of this project
CK expected to win approximately 20-25% of these projects.
In entering its 46th year in the business, CK focuses on the combination of organizational strength in diversified areas under its approach – The Power of Synergy. First, combining strength from workforce of different generations – promoting ‘team working’ culture, professionalism and family-like workplace to build a strong bonding between employees, and building ‘CK Knowledge’ based on the experience of long-serving employees and potential of new-gen employees. Secondly, combining experience, knowledge and technology to achieve maximum benefits – by developing innovation and technology and integrating them into operating process in order to gain cost efficiency, optimal productivity, high quality of construction standard and timely project delivery.
Synergy of companies in CK Group is another key focus with aim to strengthen the competitiveness of both CK and its subsidiaries in developing projects that bring benefits to Thailand and Thai people, while generating a strong business performance. CK is also committed to building collaborative relationships that are mutually beneficial to all partners and stakeholders for the sustainable growth of business.
