In the face of consumers’ changing behaviors, SCGP has constantly developed products, services and solutions. Mr. Karan Tejasen, SCGP’s Chief Operating Officer, Performance and Polymer Packaging Business, has not just witnessed but also actively engaged in such process himself because he has built his remarkable career at the firm. Below are what he has shared with P-DNA. CAREER PATH & ADVANCEMENT Mr. Karan first joined SCGP in 1988, landing a job at its Ban Pong Plant. At that time, the firm was expanding its business from just packaging-paper production to the manufacturing of printing and writing paper. “I was initially in charge of engineering work. But I was later assigned to oversee the production of high-quality art paper. After eight years under SCGP, I got a scholarship from the Federation of Thai Industries to study paper manufacturing in Scotland for nearly one year. Upon my return, SCG also gave me a scholarship to study at the Sasin Graduate Institute of Business Administration of Chulalongkorn University. Completing my MBA studies in 1999, I returned to my work and was reassigned to the marketing field,” he said. “At that time, the firm focused on packaging paper because it had just increased its manufacturing capacity for this product. As I was in charge of its marketing and support, I helped the firm expand its business in the Philippines and Vietnam. After carrying out branding for Siam Kraft Industry Company Limited, I was appointed its Marketing Director. I had overseen this business for about one decade before I was transferred to Thai Containers Group, Navanakorn Plant. But just months after the transfer, big flood hit the plant in 2011. Handling the situation and rehabilitating the business in the wake of the flood posed a challenge. But as I managed to put the plant back on track, I was later given a business integration role and oversaw more of the company’s businesses. “In 2015, SCG Paper rebranded itself as SCG Packaging and developed Flexible Packaging business through its partnership with enterprises in the Philippines and Vietnam. We later started developing rigid packaging and high-performance packaging too in line with our vision to become Packaging Solutions Provider. Now, we have expanded our business to medical materials with Spain as our first base in this field. This reflects how we have found new business opportunities for our continued growth,” Mr. Karan continued. SEEK OPPORTUNITIES & LEARN TOGETHER FOR INNOVATIONS In Mr. Karan’s opinion, the current challenge is about developing innovations for consumers as it takes both vision and keen explorations. “We need to observe customers closely and look beyond customers. The bottom line is consumers. To get new opportunities and innovations, everyone in our organization must contribute, learn more and brainstorm. We must be a learning organization, with our members sharing experiences, ideas and viewpoints. Together, we then will be able to deliver what customers are looking for,” Mr. Karan concluded. BUILD TRUST & ENABLE EXPERIMENTS Entrusted with management affairs, Mr. Karan bolsters the confidence of his team by giving team members opportunities to express opinions and prove their performance. “To empower personnel, we need to foster trust. When staff finds our team reliable and fair, they will be keen to contribute. All are welcome to share and debate. I place a strong emphasis on such culture because when an organization is big, young members are usually prone to listen only. In my team, I have encouraged expression and contributions from all. I have authorized experiments even when concepts are not yet perfect so that my team members can learn,” Mr. Karan reveals. DRIVE ORGANIZATION AS CO-OWNERS “We are a listed company. All of us co-own our organization. So, I have encouraged staff to work as co-owners. Such approach is important at the time the new generation wants to be entrepreneurs,” Mr. Karan pointed out. “A core element of our culture is collaboration. It always takes time to achieve excellence in a field. It takes devotion, accumulated knowledge and more. So, to get all these elements, our organizations’ members must first have the sense of ownership. “I also seriously encourage our staff to keep learning. Today, there are various sources of information and knowledge that we can access. Apart from training prepared by the firm, you should learn on your own too. Ask yourself why you do this or that because that may lead to better changes. We don’t have to stick to the old way of working. We can adjust for better results,” Mr. Karan concluded.
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SCGP Grows Unabatedly in 1Q; Heading Toward Annual Revenue of THB140,000 Million and Net Zero GHG emission
SCGP’s revenue from sales for the 1st quarter of 2022 continued to grow, reaching THB36,634 million, up 34% from the same period of last year as a result of gradual recovery of demands in ASEAN amid global volatilities. The Company continued to focus on cost management while cautiously expanded the business with goal to reach annual revenue of THB140,000 million as well as enlarged the B2C customer base. Meanwhile, SCGP’s effort to become leader in ESG was elevated by the submission to join the Science Based Targets initiative (SBTi), a renowned international multi–stakeholders climate initiative to achieve Net Zero in 2050. Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited, SCGP, reported that the Company continued to grow with revenue from sales reaching THB36,634 million, an increase of 34% compared to the same period last year. Meanwhile, profit for the quarter stood at THB 1,658 million, a decrease of 22% from the same period last year and EBITDA of THB4,887 million, a decrease of 7%. However, excluding extraordinary adjustment in the previous quarter, profit for the period and EBITDA of Q1/2022 increased QoQ. Factors contributing to the increase of revenue from sales include the continuous growth of business stemming from mergers and partnerships (M&Ps) with Duy Tan, Intan Group, and Deltalab. Also contributing are increased sales from the Integrated Packaging Business in ASEAN of both polymer and paper packaging products due to rising demands of consumers goods, exports of ready meal, frozen food, and pet food as well as higher prices of paper pulp as a result of surge in restocking demand amid concerns over disruptions to the supply chain. Profit for the quarter was lower than the same period of the previous year, the rising costs of raw materials and energy were contributing factors, which affected the entire industry. However, SCGP has maintained an effective and proactive cost management throughout the supply chain. The Company entered into long-term contract to acquire coal for future usage in sufficient quantities to ensure energy security and lessen impacts from price volatility. Moreover, the use of renewable energy has been continuously increased. Other mitigation efforts for ongoing uncertainties include a vigilant cash and working capital management and prudent consideration of investment projects. Heading toward the rest of 2022, demands for packaging in ASEAN are trending up as governments start relaxing COVID-19 restrictions and opening up their countries, positively impacting the manufacturing sector and encouraging more cross-country traveling. Yet, if the Russia-Ukraine conflict persists, the heightened costs of commodity, energy and raw materials would continue to be headwind for manufacturing sectors. Nevertheless, SCGP is determined to achieve the target of sales revenue at THB140,000 million and to keep on expanding its operations with capital expenditure budget of THB20,000 million for the current year under its five-year (2022-2026) investment plan with a total of THB100,000 million. Investment activity will be carried out with thorough consideration, focusing on downstream packaging industries that show long-term potential for growth benefiting from changing consumer behaviors. SCGP also commits to business continuity management to minimize internal and external risk exposures while relentlessly pursues operational excellence, value creation from business alliances, and efficient cost management throughout the supply chain. Attention is also paid to liquidity management to ensure financial stability amid the rising interest trend in order to steer the business toward its short- and long-term goals. Importantly, SCGP pays special care and consideration to the Environmental, Social and Governance (ESG) in its business operations. In the first quarter of 2022, SCGP has officially submitted our intention to join Science Based Targets initiative (SBTi), a renowned international multi-stakeholders climate initiative which help clearly-defined pathway for more than 2,000 businesses around the world to reduce greenhouse gas (GHG) emissions while prevent the worst impacts of climate change in line with the Paris Agreement goals. This is part of our long-term efforts to embed science-based targets in the fundamental of sustainability management along with the Net Zero in 2050 commitment.
Earth Day 2022 – When Mother Earth Sends Us a Message
Mother Earth is clearly urging a call to action. Nature is suffering, extreme heat, wildfires and floods, as well as a record-breaking Atlantic hurricane season, have affected millions of people. Even these days, we are still facing Covid-19, a worldwide health pandemic linked to the health of our ecosystem. Climate change, man-made changes to nature as well as crimes that disrupt biodiversity, such as deforestation, land-use change, intensified agriculture and livestock production or the growing illegal wildlife trade, can accelerate the speed of destruction of the planet. For this International Mother Earth Day, let’s remind ourselves – more than ever – that we need a shift to a more sustainable economy that works for both people and the planet. Let’s promote harmony with nature and the Earth. Join the global movement to restore our world! Source: https://www.un.org
Joining with 190 countries around the world in “EARTH HOUR 2022”on 26 March at 8:30 – 9:30 PM.
Joining with 190 countries around the world in “EARTH HOUR 2022”on 26 March at 8:30 – 9:30 PM. Switch off your lights to stand united for each other & the one home we all share. Started in 2007 by WWF and partners as a symbolic lights-out event “EARTH HOUR” in Sydney, Australia, to raise awareness of energy efficiency and climate change. With 2.2 million participants, carbon emissions were reduced to the equivalent of 48,000 cars, reducing electricity consumption by 10% compared to normal times. EARTH HOUR is now one of the world’s largest grassroots movements for the environment. Held every year on the last Saturday of March, it engages supporters in more than 190 countries and territories all over the world, all taking action to ensure a brighter future for people and the planet. For Thailand, we started participating in the EARTH HOUR campaign since 2008 and has continued to do so until now. This year, activities are scheduled. On Saturday, March 26, 2022, turning light off for 1 hour from 8:30 PM to 9:30 PM to show the power of collaboration to the international community, to recognize the intention of Thailand to help reduce global warming practically and continuously.
World Water Day 2022 – SCGP’s Commitment on Water Stewardship
Water is an essential resource for SCGP’s business operations. Regarding the use of water resources with the most value and most significant benefit, SCGP has applied the 3R principle to improve the production process to reduce the amount of water, reuse, and recycle the water used in the production process, including the restoration of the natural water resources. To discharge water to public sources, SCGP strictly complies with laws & regulations to prevent any impact on the environment or communities. Especially in today’s climate change conditions, which has a significant effect on water management, such as unseasonal and erratic rainfall patterns, no rains at the headwater area, depletion of water volume in the dams. Coupled with the demand of water consumption due to the increasing trend of the world’s population creates a water shortage in the manufacturing process and nearby communities. SCGP is committed to leveraging the capability to manage the water through the Integrated Water Management Working Team comprising of representatives from every business to formulate a strategy to address water-related risks and water usage efficiency. There is a function unit for water-related risks – monitoring, working with the government and industry sectors, with digital technology adoption, and creating innovation to increase water usage efficiency in the production process and reuse the treated water.
International Women’s Day Celebration! Let’s join UN Women and the world in coming together for the theme “Gender equality today for a sustainable tomorrow”
We now understand the vital link between gender, social equity and climate change, and recognize that without gender equality today, a sustainable future, an equal future and remains out of reach. Women and girls experience the greatest impacts of the climate crisis as it amplifies existing gender inequalities and puts women’s lives and livelihoods at risk. Across the world, women depend more on, yet have less access to, natural resources, and often bear a disproportionate responsibility for securing food, water, and fuel. As women and girls bear the burden of climate impacts, they are also essential to leading and driving change in climate adaption, mitigation and solutions. Without the inclusion of half of the world’s population, it is unlikely that solutions for a sustainable planet and a gender equal world tomorrow will be realized. SCGP also supports the UN Women’s concept, we believes gender equality is one of key foundations for a peaceful, prosperous and sustainable world. Source: https://www.unwomen.org
SCGP reinforces business operations according to ESG framework, Signing MOU for “Greenhouse Gas Reduction Business Sector Promotion Project by setting Science-based Target: SBT
SCGP’s representative, Mr. Soonthorn Yongvibulsiri, ESG and Sustainability Director signed MOU to join “Project to promote the business sector to reduce greenhouse gases by setting scientific goals (Science-based Target: SBT) Fiscal Year 2022” in collaboration with Thailand Greenhouse Gas Management Organization (Public Organization) or TGO Center of Excellence in Eco-Energy or ECEE Faculty of Engineering Thammasat University and 7 pilot organizations. Setting corporate greenhouse gas reduction targets and plans in line with the global greenhouse gas target of 1.5 or 2 degrees Celsius under the Paris Agreement. TGO and ECEE will support and provide consultation including certification of the organization’s greenhouse gas reduction targets under the Thailand Carbon Neutral Network or TCNN for participating organizations. This is to demonstrate commitment and reinforce the SCGP’s operation follows ESG framework and Net Zero target by 2050.
SCGP received the Marketing Campaign of the Year award from The “Marketing Award of Thailand 2021” stage.
SCGP received the Marketing Campaign of the Year award from the “Marketing Award of Thailand 2021” stage organized by the “Marketing Association of Thailand” in the category of “Sustainable Marketing Campaign Excellence”, Silver level from Paper X “Old for New” campaign appeals to environmentally friendly consumers, joining forces with partners to provide left over paper solutions, also create an experience that makes it convenient for consumers to participate in recycling. There were a total of 73 candidates from 44 leading organizations across the country joining this competition. This award reflects our determination to develop solutions to meet consumer needs while taking care of the environment and society to grow together in a sustainable way according to the ESG.
“ 80 Years of Ministry of Industry, 8,000 Kilograms of Recycling and Returning to The Society” Ministry of Industry joins hand with SCGP to drive BCG Model for sustainable growth
Ministry of Industry, along with its 7 departments, joins hand with SCGP in launching the project called “80 Years of Ministry of Industry, 8,000 Kilograms of Recycling and Returning to The Society” by Mr.Kobchai Sungsitthisawad-Permanent Secretary, Mr.Tawan Taweethavornsawas-Assistant Permanent Secretary and Mr. Wichan Jitpakdee-Chief Executive Officer of SCGP. In order to promote efficient use of resources and bring used paper from each department into recycling process before making them into new products for public use such as Copy Paper, Paper Field Hospital Bed, Student Desk Set, Dining Table Set and etc. The project aims to embrace the BCG Model to optimize resource utilization, and become a pilot project from the public sector that concretely empower other government agencies and entrepreneurs to follow. From now until August 2022, the recycling drop points are installed in every departments. After gathering the used materials, SCGP will use SCGP Recycle to calculate, collect, and recycle them. SCGP determines to create innovations for consumers and a sustainable world while caring for the environment and social development, based on transparency and accountability according to ESG (Environmental, Social and Governance) framework, which is in line with the BCG Model. This is another project that arises from the cooperation between different sectors to take care of the environment and build a livable society and a sustainable world together.
SRINANAPORN MARKETING SNACK MAKER WITH CUSTOMER-CENTRIC FOCUS & GREEN MIND
“Delicious, Functional, and Affordable” form the key concept of Srinanaporn Marketing Public Company Limited, which has produced and distributed snacks under many famous brands such as Jele and Bento. Boasting quality products, the firm has been growing strong throughout the past three decades, Today, therefore, has conducted an interview with Mr. Thakorn Chaisathaporn, the firm’s Senior Executive Vice President – Business Division 2, to learn about his business strategies and his family business’ path to provide Thais’ favorite snacks. Transforming Family Business into Thais’ Top-of-The-Mind Snack Maker His family business was initially a wholesaler of snacks based in Bangkok’s Mahanak Market. Within 10 years, the business grew so big that it ranked among the country’s top snack dealers as its customer base expanded across all provinces. Over time, the business expanded to the manufacturing sector as well. It started producing various snacks, including wafers and biscuits. Mr. Thakorn stepped into the firm around the time it began exporting its products to Malaysia and Singapore. “When I returned from my overseas education in late 1990, I thought about producing products for Thai market because we had an extensive network of dealers in provinces. I also noticed that shopping complexes would be a growing market. So, my family decided to found Srinanaporn. Our first brand is Good Good, which features dried fruits. Then, we bought jelly-making machines and entered shopping complexes with Jele brand in 1992. Backed by marketing activities, Jele received quite a good response. After its launch, it became the No. 2 brand in its segment,” Mr. Thakorn revealed. At that time, konjaku was growing popular. Mr. Thakorn thus commissioned his team to add konjaku into the firm’s products and sold them under Jele Light brand based on the concept of “Delicious & Refreshing Snack for Full Stomach”. The firm also added various other nutrients including collagen and vitamins to its products under Jele Beautie brand, which has been the leader in this ready-to-drink jelly product segment. Bento came to the market in 1996, because the firm noticed an opportunity in the fish-snack market. Later on, the firm has also launched various other products such as stick biscuits under Lotus brand, pineapple crackers, coconut juice, black-jelly juice, and herbal drinks under Magic Farm brand. The latest brand from the firm, AQUAVITZ, entered the market in 2020 with its vitamin-containing water. “We have discovered inspirations for business development all the time. Guided by clear policies, we have constantly studied markets and consumer behaviors. Information has been used to develop both our products and distribution channels for customer satisfaction. Today, we have four main product categories, namely 1) Jelly products; 2) Seafood snacks; 3) Biscuits and wafers; and 4) Beverages,” Mr. Thakorn explained. Customer-Centric Approach Drives Growth Srinanaporn’s goal is to establish itself as the region’s leading snack/beverage manufacturer. In pursuit of this goal, the firm has embraced customer-centric approach and environmentally-friendly operations. “Focusing on consumers, we produce delicious and functional products and sell them at affordable prices. Moreover, we pay attention to the environment because we are not just a manufacturer but also corporate citizen. We are doing our best to be eco-friendly,” Mr. Thakorn revealed. “As for packaging, our collaboration with SCGP has led to Green Carton. Friendlier to the environment than the previous version of packages, Green Cartons have curbed paper usage by 30 to 40 percent but have proven as efficient in protecting products. Our Jele packets, through our efforts, have also become increasingly recyclable. At our factory, we have used solar power where we can. Waste is minimized through an emphasis on reuse. All these measures are taken without compromising our quality and standard,” this executive quipped. Solution & Sincerity from Business Partner While environmentally-friendly Srinanaporn demands green solutions, it also looks for sincerity from its business partners in pursuit of sustainable collaborations. “We choose Green Carton by SCGP, because it has good quality with reasonable price. We need to pay attention to cost because we aim to deliver products to consumers at an affordable price as well. SCGP responds to our needs in all aspects – price, quality, functionality, and environmental friendliness. We aim to tap further into the retail market in the future as we have recognized opportunities from vending machines. We believe SCGP’s Flexible Packaging will suit our business plans well,” Mr. Thakorn continued. “We have embraced SCGP as our long-time partner mainly on two grounds. Firstly, SCGP owns a number of technologies and offers various green solutions. Secondly, SCGP is sincere. We have always received great cooperation from SCGP. As the development of our eco-friendly products and packaging continues, we really hope that SCGP will continue to support us in our journey,” he concluded.