Thai brothers emerge as billionaires with CP Group stakes

[webfact]

Thai Brothers Emerge as Billionaires With CP Group Stakes

By Netty Ismail

BANGKOK: -- Dhanin Chearavanont was known for years as Thailands second-richest man. As the chairman and public face of Charoen Pokphand Group, the countrys largest agricultural company, Dhanin was credited with a $12.3 billion fortune for managing his familys interests in more than a dozen publicly traded companies, including a Thai mobile phone operator and the countrys 7-Eleven chain.

Regulatory filings with the Stock Exchange of Thailand show his lesser-known older brothers are also billionaires and share in the familys wealth. Dhanin, 75, and his siblings Jaran Chiaravanont, Montri Jiaravanont and Sumet Jiaravanon have almost equal stakes in Charoen Pokphand, according to the filings. The brothers -- all of whom spell their last names differently -- each have a net worth of more than $2 billion, according to the Bloomberg Billionaires Index.

Dhanin is the star of the group, Yupana Wiwattanakantang, associate professor at the National University of Singapores Business School, said by phone. He built it up. His brothers are not very well known, even in Thailand.

Dhanin is the fourth son of Chia Ek Chor, who started the business as a seed shop in Bangkoks Chinatown with his brother in 1921 after arriving from China. Because its unusual for Dhanin as the youngest son to head a Chinese family business, sharing the fortune helps maintain harmony and unity, Yupana, who teaches a course on family businesses, said.

Full story: http://www.bloomberg.com/news/2014-07-13/thai-brothers-emerge-as-billionaires-with-cp-group-stakes.html

-- Bloomberg 2014-07-14

[Jeremy50]

Rich because most people don't mind eating sub-standard crap. C**P.

[ChrisY1]

Rich because most people don't mind eating sub-standard crap. C**P.

711 sausages.....crap?....c'mon...be kind:)....

(But what are they really made of....crap?)

[scotbeve]

What the OP fails to mention is that "these fine, mega-rich, upstanding citizens have, in fact, destroyed 10's of thousands (if not 100's of...) of poor, starry-eyed farmers by implementing their monopoly in a very aggressive manner... And as for 7-11 franchise owners, it costs: buy your own shop ( or rent), 3 M baht up front for training and " insurance", owner pays: utilities, labor, breakage, theft, security, and spoilage, AND CP collects 46% of NETT profit for the next 10 years. IF they don't like the profits within a certain period, you'll be shut down. The money machine keeps chuggin' along for them. I don't buy any of their products or services... At least I TRY to avoid them....

[clockman]

Also the connection to slave labour! in the fishing industry.

[bowerboy]

Their flourescent pink sausages do look dodgy...but a lot less dodgy than the sheeite they sell in the mom and pop stores!

[Thai at Heart]

What the OP fails to mention is that "these fine, mega-rich, upstanding citizens have, in fact, destroyed 10's of thousands (if not 100's of...) of poor, starry-eyed farmers by implementing their monopoly in a very aggressive manner... And as for 7-11 franchise owners, it costs: buy your own shop ( or rent), 3 M baht up front for training and " insurance", owner pays: utilities, labor, breakage, theft, security, and spoilage, AND CP collects 46% of NETT profit for the next 10 years. IF they don't like the profits within a certain period, you'll be shut down. The money machine keeps chuggin' along for them. I don't buy any of their products or services... At least I TRY to avoid them....

And of course, all carried out under the protection afforded by preventing foreign business in agriculture and retailing.

My wife's uncle works for them in Myanmar. They take everything they can and a bit more.

[HUAHIN62]

Rich because most people don't mind eating sub-standard crap. C**P.

If you eat fresh pork or chicken in Thailand you have a better than 50% chance that its produced by CP. Their business is much wider than just 7/11 and the CP branded food you see. They produce pork and chickens on their farms then either sell it fresh or process it into the CP branded products, they then sell it through the retail outlets which includes the 7/11's and the Makro chains which they own. They also export major quantities chicken to the EU and is big in fresh water shrimp.

[wabothai]

What's new?!

[kinmaew]

I am sure its also been of huge benefit the fact that foreigners are prohibited from having any controlling interest in either land or any business. Democratic Thailand in action here.

[plachon]

CP virtually control the entire supply chain of dozens of products from farm to plate for millions of Thais, as well as numerous sectors besides agribusiness they are dominant players in (mobile phones, retail, insurance, etc). They are the biggest foreign investor in China, and are spreading their influence quickly in several other Asian nations. That they have achieved such a monopoly position in Thailand is not just testament to their business acumen, but it testifies to a ruthless ambition to dominate and ability to play the system with the state on one side and market on the other. Oh yes, and did I mention, they are now able to virtually write significant areas of Thai agricultural policy to their benefit. Any surprise they are so wealthy?

But not sure what is with this subtle difference in surname of each brother? Is that something Sino-Thai cultural linked, or more to do with a tax or business competitive advantage I wonder? Never some across it before, so interested to hear any (informed) opinion on this odd phenomenon (which presumably applies to Thai and English language spellings?)

[ratcatcher]

Dhanin Chearavanont

Jaran Chiaravanont

Montri Jiaravanont

Sumet Jiaravanon

Same family four different spellings of their name?

[JacChang]

What's there to hate?

Because someone does business so successfully? What's in a business? When one person makes a trading agreement with another, of course there will be gains and losses. No one abuses anyone, the only difference is who is smarter. The contracts have everything written out clearly. Someone complained about the poor farmers? Even without CP, they will not be successful. They are those typical somchais, who will say, Oh I grew up doing this, this is all I could do. And when they fail to make ends meet, they BLAME others. How typical.

7-11? The business works, complain about the contract? Don't sign it then, go make your own shop. What's to complain? There's a reason you want to open a franchise. Well, not everything is about you. You think by opening a franchise, you can take credit for someone else's success? If your a man, go open your own shop and let's see if your income will be higher than opening a 7-11. You are buying someone else's business, of course you follow their rules, and you must benefit them, or else why should they? You literally need to beg CP to open a 7-11, not the other way around. Think about your perspective before always playing the victim.

Those assets indicated here are just peanuts compared to what they really own. Hahahaha. They got operations all over the place, including but not limited to China, Taiwan, South Korea, Japan, Cayman Islands, British Virgin Islands, and of course most of Asia.

Poor will always complain, that's what they do.

The rich identify the problem, and deal with it. Not one word.

It's so easy to join the other side, but would you do it?

-A shareholder (A happy one)

[Thai at Heart]

CP virtually control the entire supply chain of dozens of products from farm to plate for millions of Thais, as well as numerous sectors besides agribusiness they are dominant players in (mobile phones, retail, insurance, etc). They are the biggest foreign investor in China, and are spreading their influence quickly in several other Asian nations. That they have achieved such a monopoly position in Thailand is not just testament to their business acumen, but it testifies to a ruthless ambition to dominate and ability to play the system with the state on one side and market on the other. Oh yes, and did I mention, they are now able to virtually write significant areas of Thai agricultural policy to their benefit. Any surprise they are so wealthy?

But not sure what is with this subtle difference in surname of each brother? Is that something Sino-Thai cultural linked, or more to do with a tax or business competitive advantage I wonder? Never some across it before, so interested to hear any (informed) opinion on this odd phenomenon (which presumably applies to Thai and English language spellings?)

This whole article probably comes about because the main brother isn't the top guy for wealth anymore. But if they tot up the other 3 combined they are.

How can it be that these shareholdings emerge? No one knew about it before?

[barryofthailand]

Obviously the family is not managing the Business. Whoever is managing is doing a great job business wise. In the last year CP group also purchased Macro from the Brits and have improved the stores and products.

[ratcatcher]

Obviously the family is not managing the Business. Whoever is managing is doing a great job business wise. In the last year CP group also purchased Macro from the Brits and have improved the stores and products.

".........purchased Macro from the Brits ." Nope, from the Dutchmen.

[Robby nz]

These are the kind of people, the so called rich, elite, ammart who actually keep the country running while the politicians dither and fill their own pockets.

Don't see a problem with people who have built businesses up from nothing or very little and achieved success, sure there is a certain amount of ruthlessness involved but there are those out there who will also try to tear anyone down particularly in the early stages.

But there of Chinese origin, not Thai, so what, they have taken the risks and come out on top and they are not the only ones in this country there are many more, read the topic on Thai business working in France, there are many in other parts of the world also.

The country needs people to build and operate Thai owned business it cant rely solely on Japanese car makers and other such overseas companies.

[Thai at Heart]

These are the kind of people, the so called rich, elite, ammart who actually keep the country running while the politicians dither and fill their own pockets.

Don't see a problem with people who have built businesses up from nothing or very little and achieved success, sure there is a certain amount of ruthlessness involved but there are those out there who will also try to tear anyone down particularly in the early stages.

But there of Chinese origin, not Thai, so what, they have taken the risks and come out on top and they are not the only ones in this country there are many more, read the topic on Thai business working in France, there are many in other parts of the world also.

The country needs people to build and operate Thai owned business it cant rely solely on Japanese car makers and other such overseas companies.

Yes, they have been successful. The question now, is are they still deserving of legal protection from competition in their markets, which may as an aside, cause more competition in say the agribusiness market and push farm gate prices up.

They have taken some risks undoubtedly, but if any business is afforded such protection is does make the path a lot smoother.

I think its time that these protections were removed and foreign entities were allowed to purchase directly from farmers, and to export themselves, competing with the middle men.

[Chicog]

Marvellous company, completely ethical.

http://www.theguardian.com/global-development/2014/jun/10/-sp-migrant-workers-new-life-enslaved-thai-fishing

I see they are now raping Vietnamese fish stocks to feed their third plant there, too.

[UbonRatch]

CP virtually control the entire supply chain of dozens of products from farm to plate for millions of Thais, as well as numerous sectors besides agribusiness they are dominant players in (mobile phones, retail, insurance, etc). They are the biggest foreign investor in China, and are spreading their influence quickly in several other Asian nations. That they have achieved such a monopoly position in Thailand is not just testament to their business acumen, but it testifies to a ruthless ambition to dominate and ability to play the system with the state on one side and market on the other. Oh yes, and did I mention, they are now able to virtually write significant areas of Thai agricultural policy to their benefit. Any surprise they are so wealthy?

But not sure what is with this subtle difference in surname of each brother? Is that something Sino-Thai cultural linked, or more to do with a tax or business competitive advantage I wonder? Never some across it before, so interested to hear any (informed) opinion on this odd phenomenon (which presumably applies to Thai and English language spellings?)

This whole article probably comes about because the main brother isn't the top guy for wealth anymore. But if they tot up the other 3 combined they are.

How can it be that these shareholdings emerge? No one knew about it before?

They aren't actually. Chirathivat family are, and have been for 3 months.

[bangrak]

What's there to hate?

Because someone does business so successfully? What's in a business? When one person makes a trading agreement with another, of course there will be gains and losses. No one abuses anyone, the only difference is who is smarter. The contracts have everything written out clearly. Someone complained about the poor farmers? Even without CP, they will not be successful. They are those typical somchais, who will say, Oh I grew up doing this, this is all I could do. And when they fail to make ends meet, they BLAME others. How typical.

7-11? The business works, complain about the contract? Don't sign it then, go make your own shop. What's to complain? There's a reason you want to open a franchise. Well, not everything is about you. You think by opening a franchise, you can take credit for someone else's success? If your a man, go open your own shop and let's see if your income will be higher than opening a 7-11. You are buying someone else's business, of course you follow their rules, and you must benefit them, or else why should they? You literally need to beg CP to open a 7-11, not the other way around. Think about your perspective before always playing the victim.

Those assets indicated here are just peanuts compared to what they really own. Hahahaha. They got operations all over the place, including but not limited to China, Taiwan, South Korea, Japan, Cayman Islands, British Virgin Islands, and of course most of Asia.

Poor will always complain, that's what they do.

The rich identify the problem, and deal with it. Not one word.

It's so easy to join the other side, but would you do it?

-A shareholder (A happy one)

Mr shareholder, let me guess, you're also (Thai-)Chinese, maybe you work for CP or are even a member of the family, to defend so well such awfull sharks abusing the true, real, Thais through their, certainly(not?) honestly acquired dominant position? And I'm sure the Cayman Islands and British Virgin Islands you, for some unknown reason, or did it come out by mistake, write about are HUGE export markets for Thailand, for CP's chicken, pork and eggs, maybe(?!), but for sure for ...(Thai-)Chinese money, ask the Shins (Amply Rich, etc., anyone?) and some others too, it are top-locations to launder, hide in shady funds and trusts, re-invest even here, while not paying taxes in Thailand, where the family's money was, originally totally, now still for a large part, generated... It's not only them, it's what most 'mega-rich' from everywhere attempt to do, but does it make them 'nice people', 'good' human beings, erm ...? And it is still illegal in the first place! Thank you Mr shareholder for this insider's information which was probably not so clearly visible in many years of the group's balances... While reforming the economy, would the NCPO be able, and willing, to do something about giants like CP, like introduce measures existing in many, democratic, countries, where market shares above 20% in a sector are prohibited, to avoid dominant and monopolistic positions? Do the Thai people want to eat cheaper, build cheaper, travel cheaper, etc., that's the way to go! ...Down and away with the flagships of the (Thai-)Chinese 'new merchants' elite'!

[Carrerakiss]

I am sure its also been of huge benefit the fact that foreigners are prohibited from having any controlling interest in either land or any business. Democratic Thailand in action here.

Perhaps, but they also have a huge business in Indonesia, so it's not all down to trade protection within Thailand.

[SPIKECM]

well you're right, but this is the free market in operation. At least the 7/11 chain in Thailand has competition and increasingly so and they do provide a great service to the customer. I guess for the 7/11 potential franchisee, if you don't like the deal, then open your own store.

I'm in the Philippines and outside Manila there's a crying need for a similar service and it just doesn't happen, which is partly why tourist numbers are so low here and partly why people are so poor. No free market operating in the Philippines and the rich take the piss out of the poor to mind boggling extremes. Everything is monopolised here and hardly anything works.

What the OP fails to mention is that "these fine, mega-rich, upstanding citizens have, in fact, destroyed 10's of thousands (if not 100's of...) of poor, starry-eyed farmers by implementing their monopoly in a very aggressive manner... And as for 7-11 franchise owners, it costs: buy your own shop ( or rent), 3 M baht up front for training and " insurance", owner pays: utilities, labor, breakage, theft, security, and spoilage, AND CP collects 46% of NETT profit for the next 10 years. IF they don't like the profits within a certain period, you'll be shut down. The money machine keeps chuggin' along for them. I don't buy any of their products or services... At least I TRY to avoid them....

[Thai at Heart]

well you're right, but this is the free market in operation. At least the 7/11 chain in Thailand has competition and increasingly so and they do provide a great service to the customer. I guess for the 7/11 potential franchisee, if you don't like the deal, then open your own store.

I'm in the Philippines and outside Manila there's a crying need for a similar service and it just doesn't happen, which is partly why tourist numbers are so low here and partly why people are so poor. No free market operating in the Philippines and the rich take the piss out of the poor to mind boggling extremes. Everything is monopolised here and hardly anything works.

What the OP fails to mention is that "these fine, mega-rich, upstanding citizens have, in fact, destroyed 10's of thousands (if not 100's of...) of poor, starry-eyed farmers by implementing their monopoly in a very aggressive manner... And as for 7-11 franchise owners, it costs: buy your own shop ( or rent), 3 M baht up front for training and " insurance", owner pays: utilities, labor, breakage, theft, security, and spoilage, AND CP collects 46% of NETT profit for the next 10 years. IF they don't like the profits within a certain period, you'll be shut down. The money machine keeps chuggin' along for them. I don't buy any of their products or services... At least I TRY to avoid them....

Competition from whom?/ technically no foreign entities are allowed in retailing. They also have Makro which means they represent a massive wedge of retail space in the Thai market.

[AnotherOneAmerican]

Dhanin Chearavanont

Jaran Chiaravanont

Montri Jiaravanont

Sumet Jiaravanon

Same family four different spellings of their name?

Thai family with Chinese parents.

I'm thinking none of them knew the Roman alphabet, until they had all spelled it a different way.

Then they were all too important to back down and agree one spelling, when they found out.

I can just imagine,

"You change, no you change, etc."

[bangrak]

Isn't it 'funny', just today, CPF officially came out with a big denial press release, ...after a report was published by the Thailand Information Center for Civil Rights and Investigative Journalism told '...an Agri business company...' (no names given or visible) '...has been found paying journalists as part of its strategy to influence mass media to keep its image positive' (my info can be cross-checked on the 'other paper''s site)! You're not named (libel in Thailand...) in some dirty affair, but you, at once, go to the press to deny having done anything like that... LOL! Bad, stupid, communication, or this new(!) Chinese proverb: when a man attempts to put out a small fire on the courtyard by throwing a big bucket of petrol over it, maybe he wants the high flames to hide the barn which has caught fire behind. LOL!

[moe666]

Buy some of there stock and make some money and stop complaining.

[moe666]

Buy some of there stock and make some money and stop complaining.

[bangrak]

Obviously the family is not managing the Business. Whoever is managing is doing a great job business wise. In the last year CP group also purchased Macro from the Brits and have improved the stores and products.

".........purchased Macro from the Brits ." Nope, from the Dutchmen.

And, nope, again, it's (only) the Makro license for Thailand CP bought, Dutchmen ain't dumb!

[Thai at Heart]

Isn't it 'funny', just today, CPF officially came out with a big denial press release, ...after a report was published by the Thailand Information Center for Civil Rights and Investigative Journalism told '...an Agri business company...' (no names given or visible) '...has been found paying journalists as part of its strategy to influence mass media to keep its image positive' (my info can be cross-checked on the 'other paper''s site)! You're not named (libel in Thailand...) in some dirty affair, but you, at once, go to the press to deny having done anything like that... LOL! Bad, stupid, communication, or this new(!) Chinese proverb: when a man attempts to put out a small fire on the courtyard by throwing a big bucket of petrol over it, maybe he wants the high flames to hide the barn which has caught fire behind. LOL!

Hahaha. Absolutley classic. I mean how anyone with a brain can sit there and have anything to say about foreign agribusiness, but believe that CP isn't the problem but part of the solution in Thailand, is beyond me.