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Special Issue: Volume meets Khun Thiraphong Chansiri

Resemblance between Pioneering Father and Succeeding Son

Thiraphong Chansiri is the eldest son of Kraisorn Chansiri, pioneer and founder of one of Thailand's early frozen seafood enterprises. Business success achieved in the olden days of his father's age provides Chansiri Family with foundation to grow into among Thailand's first 40 wealthiest people, with total asset value of USD160 million (Bt6,400 million).
Volume is eager to learn about the drive behind Thiraphong, once early founder and today's leader of TUF. What drive is behind his personal life and business success that make him ranked 25th among the world's richest people (Forbes Magazine 2005).

Business Settlement
In 1977, Thai Union Manufacturing Co., Ltd. started business as small tuna cannery in Samutsakorn province. The first decade after the firm's inception solely involved frozen seafood business.

Four years later, the operation was expanded down under to Songkhla province through the setup of Songkla Canning Co., Ltd., today's listed company on the Stock Exchange of Thailand. It was not until 1990 when TUF made its debut in frozen seafood business and was engaged solely in this business. TUF became a publicly traded company in 1994 when it began to be managed, planned, structured and positioned as holding company in order to own shares in all of its subsidiaries and to facilitate future investments.

Aside from being Thailand's major frozen seafood processor, TUF also expanded into overseas territory through acquisition of Chicken of the Sea, the U.S. third prominent canned seafood brand, in 1997.

"From then on, we spent years in re-branding Chicken of the Sea. It was in 2003 when we were ready for expanding into the U.S. frozen seafood business, which is relevant to our core business. Acquisition of the New York-based Empress International served as our additional product distribution channel."

"Early this year, we also managed to set up Chicken of the Sea Frozen Food in the United States. This new company helps strengthen distribution channel of the Empress International to facilitate faster market penetration and to gain wider customer base. This move marks 10-year milestone of TUF's presence on the U.S. territory. Three companies of us on the U.S. territory collectively generate as much as 45% of TUF Group's total revenue," Thiraphong recalled historic development of TUF business expansion.

With regards to overseas investment, in addition to major investments in the U.S., Chansiri Family's TUF also invests in China and last year became the owner of  "Century" brand, China's number-one canned fish product.

In addition, TUF expands this year into Indonesia through acquisition of local canned tuna manufacturing plant. As all TUF businesses center on seafood manufacturing and distribution, TUF product presence has reached every corner of the globe.

"We gained during 1997 economic crisis. Our growth was exceptional during that period due mainly to our continued focus on risk management. Our focus is centered on business expertise and strength. As we had no overseas debt, that's the factor that made us survive the crisis."

"Thai Baht depreciation at that time actually benefited us significantly, as we generated as much as 90% of revenue from export. While our competitors were financially crippled, we then remained healthy and strong. As such, we had more opportunity to work on new business and investment."

From First to Second Generation
Corporate policy deployed by both TUF generations does not differ. Thiraphong says that what his father did has been proven efficient. Principally, his father centered on personnel, teamwork and risk management. TUF's growth and expansion today are what differ from those practiced by the first generation.

"Management principle remains unchanged, as our business is not complicated. We are food processor and exporter. We focus on standard quality and cost management. What is important is our close supervision. Our management need to devote themselves to getting things done."
"Statistically, we have maintained 20% annual growth rate for several years. We focus on business goal. Our 2003 revenue reached USD1,000 million. We then set another goal to reach USD2,000 million within 5 years. Up until now, we are in the third year of our 5-year goal and have already reached approximately USD1,500 million. So, we are well on track. What we will have to accomplish within the remaining 2 years is to reach the USD2,000-million goal."

"About my being ranked as Thailand's 25th wealthiest people (2005 data), I am not serious about this ranking. Instead, I care about business goal. I personally believe that when we reach our business goal, that ranking will automatically be improved. This is because our business goal is fairly challenging - and actually quite ambitious."

Secret of Success
TUF business nature involves management of more than 24,000 workforce, mostly taking action in production lines. Discipline is vital for efficient management of such huge number of people. As such, Thiraphong gives more weight to discipline, both personally and professionally.

"Discipline is a matter of being punctual, with clear time management. I am an early riser. I did not entertain my guests during the last few years, if not necessary. This allows me more leisure time. I have been setting aside my private time for sporting lately."

In addition, he also keeps himself alert to new things, self-adjustment and flexibility in response to ever-changing world of today.
Unlike his father, he spends more time with his family members. During the period of his father's pioneer, extra time and devotion were particularly important to set up the business, thereby having less time for family.

"Although we are the second generation of our family, devotion to work is still important. Still, I pay special attention to make good balance between work and family. I am lucky to be very close to my father, as I am his eldest son. We always spend time together discussing issues, mostly business ones. This is an opportunity for me to learn from him business thinking, life and philosophy."

"My father cultivates in me being economical, which is an uncomplicated yet important trait, and also is one of our main business principles. My father has placed much importance on cost-efficiency throughout his life. Being economical does not mean using none, but making best use of available benefits."

"Being humble is another Chinese way that I always practice.  Being humble helps us know where we actually are, both in personal life and business. It gives the feeling that we need to learn constantly, as humble person tends to be a good listener."

"Business risk is what I always realize. Whatever can happen. Nothing is 100% certain."

"My main secret to success are avoiding having too much sympathy for myself, looking at problems and pressure positively and allowing my mind at ease. With these in place, we can tackle all problems."

Private Leisure
All 5 family members - two sons, one daughter, wife and Thiraphong himself - live together in a harmonized house. Who would ever know that amidst busy life to build greater TUF, Thiraphong does not ignore to set aside time for leisure activities with his beloved family members.

"As I work 6 days a week and have limited free time each week. The only one free day available is dedicated to family. So, I choose to do something quick and beneficial, like jogging, as I do not have to worry about teaming up with other players."

"The rest of my free time is given to family. There is nothing too special. If time permits, I may either update myself with how well my children do at school or take them to school myself. If I have more time, I sometimes take them for a trip either in Thailand or overseas."

Thiraphong may differ from his father in that he does not demand his children to become family business successors. Instead, he focuses on providing good education and bringing them up into well-behaved grownups. He lets his children make their own decision about their future career.

TUF has grown over time from pioneering generation into current second generation. Future will tell us how wealthier the third generation of Chansiri family will evolve into.