122 | theceomagazine.com
Formed in 2010 after merging with
Tanayong – a property development firm
founded by Keeree in 1968 – BTS raised
THB62.5 billion in the biggest private
sector IPO in Thailand’s history in 2013.
This milestone marked the end of more
than a decade of hardship, and Kavin was
well-equipped to take over the position
of CEO from his father in 2015.
Today, BTS is the thirty-second largest
company in Thailand, with a market
capitalisation of THB102.7 billion. The
company aims to provide a sustainable
and leading set of ‘City Solutions’ to urban
communities across Asia, supporting the
needs of consumers in four principal
business sectors: mass transit, media,
property, and services.
BTS’s Bangkok Mass Transit System aims
to improve the quality of life for the city’s
population by easing traffic congestion and
providing an environmentally friendly
transport alternative for commuters. As the
largest mass transit operator in Thailand, BTS
has 66 per cent ridership market share and
35 stations stretching 36.3 kilometres. Of its
4,243 employees, 51 per cent are dedicated to
the company’s lucrative mass transit division.
Kavin is proud that the BTS transit system is
one of few in the world run by a family
business instead of by government.
BTS also focuses on the media business
through its subsidiary VGI Global Media,
with a 42 per cent market share and a daily
reach of up to 3.5 million people. A pioneer
in targeted, data-driven advertising, VGI is the
most profitable out-of-home (OOH) media
company in Thailand, with more than 10,000
displays across the OOH media network
nationwide. Alongside its exclusive concession
to manage advertising in BTS stations, VGI
has expanded into advertising in key offices
and residential buildings in Bangkok as wellas airports and roadside media across
Thailand. Having been entrusted with the
running of the media company from the
start, Kavin holds high standards for VGI
and looks forward to watching it flourish
beyond the end of BTS’s 30-year concession
in 2029. This potential is already reflected in
BTS’s profits, with 35 per cent of revenue
from media, compared with 49 per cent from
mass transit, seven per cent from property
and nine per cent from other services.
Looking to expand into other ASEAN
countries, VGI has invested in a joint venture,
Titanium Compass Sdn Bhd, to advertise in
31 stations and 58 trains in Malaysia’s Mass
Rapid Transit system.
Engaged in property development since
1968, BTS is the second-largest hotel
company in Thailand. Operating globally,
the Group is focused on developing and
acquiring residential and commercial
properties along existing and future mass
transit lines, and strategic partnerships with
other property players to strengthen its
business. In a new foray into hotels, BTS,
via its 35 per cent associate U City Pel, has
acquired the European brand Vienna House
for THB12.3 billion, planning to expand its
business from Central and Eastern Europe
to regions including Thailand, Asia and the
Middle East.
BTS has also invested THB20 billion in
new plots of land for a joint venture
development in condominium and low-rise
residential projects with SET-listed developer
Sansiri Plc. Located near mass transit lines,
Kavin says such plots are quality investments
as the capital gain from increasing land prices
is higher than the interest offered by banks.
As the final division of its four-pronged
business, BTS also acts as an incubator for
lifestyle-enriching service businesses. BTS’s
Rabbit card is Thailand’s first e-money »IN BANGKOK, ONLY SIX PER CENT OF PEOPLE TRAVEL BY RAIL, WITH 90 PER CENT
USING BUSES. COMPARED WITH CITIES SUCH AS SINGAPORE, HONG KONG AND SEOUL- WHERE 40–50 PER CENT OF PEOPLE USE RAIL TRANSIT – BANGKOK’S SIX PER CENT
PRESENTS A MASSIVE OPPORTUNITY FOR EXPANSION.
INNOVATE | Interview