Executives at long-standing conglomerate Yip In Tsoi Co Ltd credit expansion of its empire and navigating through challenges to foresight, business diversification and strong partnerships.
Established in 1926, the company aims to reach 15 billion baht in total revenue by its 100th anniversary.
The group has nine subsidiaries with 1,900 employees, with businesses ranging from digital solutions, engineering and trading to manufacturing and insurance.
KEYS TO SUCCESS
Morakot Yipintsoi, the company's president and chief executive, and Supak Lailert, chief operating officer, told the Bangkok Post foresight, diversification, integrity, partnership and long-term business sustainability are the company's bedrocks during challenging times.
Mrs Morakot and her cousin Mr Supak are the two heads of the company's third generation of executives.
Mrs Morakot said her grandfather Yip In Tsoi was an ambitious and eager young man when he finished his studies at a leading university in China. He completed a financial internship in Hong Kong for two years before returning to assist his father in the trading business.
This provided him an opportunity to explore trade operations in southern Thailand. At that time, he believed the mining and mineral industries had promising prospects.
In 1926 Yip In Tsoi, together with his father, some relatives and many others established a registered ordinary partnership called "Yip In Tsoi & Co" in Songkhla province.
The mining and mineral trade was a new business that supported the trend of tin mining in southern Thailand, with resale to a foundry in Penang.
Yip In Tsoi seized an opportunity to become a direct reseller of minerals to the foundry, gradually growing in a two-shop house located in Hat Yai Junction.
In 1930 Yip In Tsoi & Company Ltd was established, engaging in trade with leading international companies while expanding and diversifying its business.
SHIFT TO TECH
Mrs Morakot said the company entered the technology business in 1954 by becoming a distributor of "Burroughs Adding Machines," an advanced office mechanical calculator.
In 1963, Mrs Morakot's father Tawat Yipintsoi, who graduated with a master's degree in business administration from Cornell University in the US, began driving the company's technology business.
He started by conducting R&D to create a Burroughs computer that could type in Thai language. In 1973, the company expanded into the distribution and installation of mainframe computers, playing a crucial role in this business.
The company's outstanding projects included installing mainframes at Kasikornbank, the National Institute of Development Administration, the Royal Thai Air Force, the Metropolitan Electricity Authority of Thailand, and the Finance Ministry.
The business then expanded to include public and state-owned enterprise clients, leading to significant growth in its technology segment.
"We always deliver projects completely, which gives us long-term credibility. The delivery of some projects were delayed during the pandemic, but we delivered what we promised," said Mrs Morakot.
She said the company believes in promoting partnerships and the success of customers. It does not believe in leveraging monopolies for growth, said Mrs Morakot.
"We do business for long-term, sustainable growth," she said.
Yip In Tsoi diversifies to keep pace with the changing business landscape, exploring new opportunities and minimising risk to gain multiple sources of revenue, said Mrs Morakot.
Mr Supak said the company's ability to foresee upcoming economic and social change enables it to move first to capitalise on opportunities.
Mrs Morakot said the greatest challenge for the group was when Thailand floated the baht in 1997, as its businesses were involved in trading and imports.
The group survived that tough time with the support of its business partners, suppliers and banks, she said.
"We sincerely discussed our problems with them, and our partners were willing to postpone the debt payment periods as they trust our company," said Mrs Morakot.
CORE FOCUS
Mr Supak said the group's digital technology solutions focus on four areas, including cloud service.
With more than 60 years of experience in offering system integration service, Yip In Tsoi has expertise in both legacy server systems and advanced IT systems.
Another focus is cybersecurity, as the company set up a special team dedicated to this business, aiming to become a top three provider.
The third and fourth areas are digital solutions, especially for core banking systems, and data analytics systems.
Mrs Morakot said digital technology businesses contributed 80% of the company's total revenue of 10 billion baht, while agricultural segments such as fertiliser sales accounted for 15%. The remainder was generated by engineering tech, manufacturing and insurance businesses.
"By the 100th anniversary, we aim to reach 15 billion baht in total revenue," Mr Supak said.
He said Yip In Tsoi has a diverse information and communication technology business portfolio.
Regarding cloud service, the company sees an opportunity to help customers modernise their infrastructure and shift from having their own on-premises data centres to utilising cloud service to reduce IT costs, said Mr Supak.
The next century
Mrs Morakot said Yip In Tsoi plans to use digital technology over the next 100 years to improve the well-being of Thai society.
The company also embraced green energy and sustainability, she said.
"As one of the country's oldest firms, we can be a pillar to drive the green economy, reducing carbon emissions," said Mrs Morakot.
In the past few years, Yip In Tsoi also invested in several startups, with more than 100 million baht allocated to clean energy, smart agri-tech and bio-nanotech, she said.
The startups comprise: EasyRice, which uses artificial intelligence for the "food revolution"; Solaryn Group, which is in the renewable energy, energy storage and smart farming business; Morena Solutions Co, a biotech company; and Winnonie, an e-bike rental platform.
The company also plans to launch an e-bike under the RYN brand by the end of this year under a joint development effort with a university, said Mrs Morakot.
Yip In Tsoi has a pilot project installing solar battery storage at a shrimp farm to reduce electricity use. She said electricity bills cost Thai shrimp farms around 8 billion baht per year.
As part of the group's vast scope, Mrs Morakot said the electric vehicle business will serve as another source of future growth.
Yip In Tsoi is also exploring opportunities in integrated traffic management and surveillance services for smart cities, she said.
Spin-off and IPO
Mr Supak said the company plans to have a subsidiary launch an initial public offering (IPO) within two years.
In addition to its investment in promising startups, Yip In Tsoi set up an internal sandbox to incubate and encourage staff to explore new firms and start their own businesses, he said.
The company also adjusted the staff performance base and promotes an open working culture among different generations, said Mr Supak.