Some say a grave affliction can change a person overnight, for better or worse. For Pita "Tim" Limjaroenrat, it's definitely the former.
Tim aims for his company, CEO Agrifood, to be one of the world’s top rice bran producers by 2020. kosol Nakachol
At only 25, Tim suffered the sudden loss of his beloved father, an unexpected 200-million-baht debt, a fragile start-up and an uncertain future for the company's employees. These devastating blows struck him the moment he returned to Thailand in 2006 after spending years studying and working in the US.
"We humans are all born with sufferings and mistakes, but we must not fear to fail," he says of his experiences.
After a long, rough journey, the 34-year-old is today a successful business operator and celebrity known for his courage and determination in turning around his father's ailing business and taking it to another level — an enterprise with a billion-baht turnover.
In 2011, Tim was named Person of the Year for the Agricultural Industry by the Foundation of Science and Technology Council of Thailand, while his factory was chosen as a pilot for the One Province, One Agro-Industrial Product project by the Industry Ministry.
"We have to fail and fail better. And don't let guilt in the past or emotion get in your way," he says, recounting the time he realised the abrupt change in his life and the huge responsibility on his shoulders.
He says he was numb when told of his father's sudden death. As the older of two brothers, Tim immediately flew back from the US and picked up the pieces of a start-up and dreams his father, the late Pongsak Limjaroenrat, an agricultural veteran and former consultant to the Agriculture Ministry, left behind.
After working in the agricultural industry his entire life, his father decided in 2006 to set up a company, CEO Agrifood Co, in Sing Buri province to produce crude rice bran oil and defatted rice bran for human consumption as well as livestock and aquaculture feed. Unfortunately, his time was short. He left his business facing debts of 200 million baht after only three months.
Tim says his father was a true believer in the potential of rice bran. In the past, this product of milled rice would be used for landfill, making fertiliser and animal feed. Advanced technology today allows it to be further processed, extracted and refined to suit human consumption and make other value-added products such as cooking and salad oil, skin and health products and more.
Tim spent months studying rice bran and the entire business, trying to get it off the ground. Though deep in sadness, he felt strong and confident inside.
"At the time, my mum couldn't get up and my brother was only 21. So I kept going every day. I just made sure every day went as planned. If not, there must be a contingency plan," he says.
Things were tough, he admits. Problems cropped up every day. But his wise word was "prioritisation" and he listed regaining employees' trust as his first priority.
"There was a trust crisis after my dad passed away. The employees feared losing their jobs. I told them that I didn't have the answers, only the right questions. But if any of them felt uncomfortable [and wanted to leave], I would understand. That way, at least they knew I wasn't entirely blank."
Until today, none of them has left the company.
He hired professionals from Brazil to fix machines lying on the factory floor unassembled.
Suppliers and customers were next on the list. "They were unsure if we were able to carry on," he recalls. "If these two parties were doubtful, then the banks wouldn't look at us and we wouldn't get a loan. That's why we needed to break this cycle and regain their trust."
And he did. He recounts inviting suppliers to his plant to demonstrate that his factory was ready for production and showing customers the output that was up to the promised quality.
The suppliers and customers were happy, and so were the banks. He says his work experience with Merrill Lynch and Boston Consulting Group and hard work played a big role in his management of the company.
After countless trials and errors and much sweat and numerous failures, in 2007 his efforts began to bear fruit. The first lot of his rice bran oil was produced and sold. At the end of 2007, sales turnover stood at 300 million baht, and it rose to 700 million in 2008 and hit 1 billion in 2011. This year, the target for revenue is set at 1.2 billion baht.
Domestic sales contribute 60% of the total, with the rest for export. Its defatted oil is sold to the country's key feed and livestock producers including Charoen Pokphand Foods Plc, Saha Farm Co, Cargill Inc and Betagro Group, while rice bran oil is exported to Japan, South Korea, Australia, New Zealand, India and Malaysia for cooking oil. Two Japanese firms, Sojitzu and Boso, hold 27% of shares in CEO.
"You have to persevere and keep trying. I have an imaginary line — when I walk past it, I forget the failure and start all over again. If I quit, it will be a wreck. But if I keep trying, I will get there one day," Tim says with a smile.
The cooking oil market is still small with a value of 15 billion baht. Only 10% is rice bran oil. However, Tim believes its potential is huge after consistent growth in the past five years. His ultimate goal is to become one of the world's top rice bran oil producers by 2020.
"Italy is known for olive oil, Canada for canola oil and the US for soybean oil. Why can't Thailand be known for rice bran oil?" he asks.
Tim believes Thailand holds an advantage in rice bran production but still lacks strategic marketing and public relations. The country needs to find practical ways to reduce its rice production costs, which are higher than those of countries such as China and Vietnam.
Within the next two to four years, he hopes to be able to expand his product range. He plans to invest 100 million baht in a refinery and another 150 million in an extraction plant. He has also marketed products such as rice bran oil in capsules for health and cosmetics products.
Tim believes he has come a long way. "At least I've made my mother and my employees happy. And that's what counts."
He vows to continue working hard. "Past performance doesn't guarantee future success. I need to keep working hard but smart. We are a small and medium-sized enterprise but we'd rather be a smart and medium-sized enterprise."