PCE Drives Growth Through Innovation and Sustainability

Please elaborate upon the history of PCE and the journey that has led to where the Company is today.

It begins with the entrepreneurial foresight of our founder, Mr. Prakit. A non-native to Surat Thani, he saw an opportunity in the province's thriving fishing industry. The company's first venture was a floating diesel refuelling station, designed to serve the local fishing fleet—a critical service in a region known for its heavy rainfall and agricultural abundance.

Building on our expertise in the oil sector, we expanded the business to include diesel transportation, establishing PETCHSRIVICHAI as a key player in moving fuel from Bangkok to the southern provinces. We further optimized our operations by transporting coconut oil on return trips, maximizing efficiency in our logistics.

The emergence of crude palm oil (CPO) as a valuable commodity in Thailand presented another growth avenue. Seeing the potential, we pivoted the business to transport CPO from the southern production hubs to refineries in Bangkok. As volumes increased, the challenges of trucking became evident—congested roads, logistical complexities, and rising costs. The solution? Diversification into maritime transport and the establishment of tank terminals to store oil prior to shipment. This strategic expansion laid the groundwork for PK Marine, a move that drastically reduced operational costs and enhanced efficiency.

Furthering our integration into the palm oil industry, we founded PACO to support CPO trading. Initially, the goal was logistical optimization rather than outright trade, but market demands led to a deeper involvement in trading activities. Our trajectory was also influenced by the late King Rama IX's agricultural initiatives, which encouraged value addition to agricultural products—leading us into renewable energy production from vegetable oils.

From our humble origins as a floating refuelling station, PETCHSRIVICHAI has evolved into a leading force in Thailand's palm oil sector. Our growth has been shaped by a keen eye for opportunity, robust management, and a continuous drive for innovation.

How important is sustainability for PCE's business operations, particularly in managing the value chain from upstream to downstream? What is the long-term vision for passing on this business as a legacy to both the family and shareholders?

Sustainability is embedded in PCE's business model. Managing the entire value chain—from upstream oil palm plantations to downstream consumer products—offers a competitive advantage but also presents challenges, particularly in ensuring efficiency across all levels of production.

We have strategically invested in our own plantations, allowing us to maintain control over raw material quality and market responsiveness. Upstream operations, while more complex than downstream consumer engagement, provide the foundation for long-term business resilience. While marketing and product innovation play a vital role in downstream success, managing upstream processes efficiently is the key to sustainability and profitability.

For us, business sustainability is not just about revenue generation—it is about securing a legacy. We view our palm oil operations as an enduring asset, meant to be preserved and enhanced across generations rather than treated as a short-term financial vehicle. With a commitment to responsible resource management and sustainable business practices, we seek to balance profitability with positive industry impact and long-term growth.

How has PCE's IPO affected the company's growth strategy moving forward? In your view, how does entering the stock market function as a bridge to connect the company with global partners and expand business opportunities? Also, which segment of PCE generates the highest revenue currently?

Our recent IPO marks a significant milestone, opening avenues for broader expansion and reinforcing our credibility in the global marketplace. Going public has facilitated partnerships with international firms, particularly those with strong downstream capabilities that complement our expertise in upstream operations. Rather than building new markets from scratch, we leverage our partnerships to accelerate business synergies and expand our global reach.

Currently, our revenue streams are structured around three primary segments:

• New Biodiesel (NBD): The cornerstone of our revenue, focusing on crude palm oil extraction and refining for the renewable energy sector.
• Trading Business (PACO): Managing the procurement and sale of raw materials and finished products, optimizing market conditions for maximum profitability.
• Service Business: Encompassing logistics, transportation, and energy-related infrastructure, supporting our integrated operations.

We believe our future lies in value creation rather than volume-driven competition. We seek to move beyond high-market-volume operations with thin margins, instead focusing on innovation and differentiation to drive sustainable growth.

Could you elaborate on the New Biodiesel Business, which is PCE's core segment, including its operations in extraction plants and future value-added plans for its products?

At PCE, our core business revolves around the full spectrum of the palm oil value chain, from the upstream extraction of crude palm oil (CPO) to the production of higher-value derivatives, including edible oils and renewable energy. Biodiesel is our key focus and the dominant driver of revenue, reflecting both our strategic direction and the growing global demand for sustainable energy solutions.

The process begins at our extraction plants, where fresh oil palm fruits are processed into crude palm oil. This CPO is then sent to our refineries, where it is refined into two principal product categories. The first, and most significant, is our renewable energy portfolio, specifically biodiesel, which we see as a crucial pillar in the transition towards cleaner fuels. The second category consists of edible oils, catering to both domestic and international markets.

Crucially, our approach is not just about refining raw materials but about maximizing the value of byproducts as well. Palm kernels, for instance, are processed into crude palm kernel oil (CPKO), a premium product widely used in the food and cosmetics industries. Meanwhile, palm shells and husks, often discarded in conventional operations, are repurposed as organic fertilizers or as raw materials for other industrial applications, ensuring that our production remains both efficient and sustainable.

Looking ahead, our strategy is clear: move beyond commodity-driven sales and into specialized, high-value markets. While several industry players remain focused on bulk crude palm oil production, we are committed to developing niche products tailored to sectors such as food, cosmetics, and renewable energy. This shift not only enhances profitability but also differentiates PCE in an increasingly competitive market. By leveraging our expertise in refining and byproduct utilization, we aim to position ourselves at the forefront of a morsustainable and value-driven palm oil industry.

Can you discuss PCE's plans for investing in new plants and the integration of advanced technologies to enhance operations? Specifically, how does PCE plan to use automation and innovation to improve efficiency and ensure the smooth transition of the business to future generations?

A key priority for our future is the integration of advanced technology into our operations. Plans are in place to construct two new extraction plants, leveraging automation to enhance efficiency while reducing reliance on manual labour. While automation will streamline quality control and production monitoring, we stress that technology will augment rather than replace human expertise. Our employees will be freed from repetitive tasks, allowing them to focus on higher-value functions requiring strategic thinking and creativity.

Long-term, these technological investments will ensure business resilience and stability across leadership transitions. By creating a structured, data-driven operational framework, we are laying the groundwork for sustained efficiency and market adaptability.

What is your perspective on ESG (Environment, Social, and Governance), and how does PCE implement sustainability strategies in its operations? Specifically, how does the company integrate technology, resource management, and community support to create positive long-term impacts?

Environmental, Social, and Governance (ESG) principles are at the heart of our corporate philosophy. ESG is not merely a regulatory requirement but a fundamental part of responsible business. We have undertaken several initiatives to minimize our environmental footprint, including waste management programs that convert production residues into valuable byproducts such as organic fertilizers. Socially, we invest in community development, focusing on long-term economic empowerment rather than short-term philanthropy.

Future ESG plans include expanding eco-friendly production facilities, increasing the use of sustainable materials, and fostering circular economies in collaboration with local communities. By embedding sustainability into every aspect of our operations, we aim to create lasting value for both the company and society.

PCE's customer base is multinational, please discuss each markets opportunities and the Company's expansion and value addition plans to stay ahead of market trends.

Our customer base is primarily B2B, with a strong presence in international markets like India and Africa. These regions present significant opportunities as demand for palm oil remains high, especially in the food and energy industries. That said, navigating these markets requires a deep understanding of local regulations, trade policies, and customer preferences.

India is one of our most crucial markets. The demand for palm oil there is immense, but it comes with challenges—government import policies and tariffs can shift quickly, affecting trade. Our one-stop solutions streamline supply chains and optimize costs, making it easier for our partners to operate efficiently. Africa, on the other hand, is an emerging market with robust growth potential. A growing population and increasing urbanization are fuelling demand, particularly in the food industry.

What sets us apart is our comprehensive service model. We manage everything—from production to logistics and market consulting—giving our customers a complete solution rather than just a commodity. Trust and reliability are critical in this industry, and Thailand's reputation for professionalism further strengthens our position. Our ability to quickly address logistical issues or pricing fluctuations reinforces our status as a dependable partner.

From an export perspective, Thailand gives us a competitive edge. Unlike Indonesia and Malaysia, which impose export levies on crude palm oil (CPO), Thailand has no such restrictions. This allows us to operate more competitively, though our production scale is smaller. Instead of chasing volume, we focus on specialization and value-added offerings.

Looking ahead, we see the future of the palm oil industry in value-added products rather than bulk exports, moving up the value chain, tailoring our products for industries like food and cosmetics. One particularly promising area is palm kernel oil (CPKO), which has higher value due to its specialized use in the food and cosmetics industries. Our expansion strategy also includes small-scale, high-efficiency extraction plants with a daily capacity of 300 tons. These facilities will prioritize premium, value-added products rather than mass production, aligning with global trends that favour quality over quantity. Beyond production, we are identifying new growth opportunities in the food industry.

Our long-term goal is clear: we aim to differentiate ourselves from high-volume exporters in Indonesia and Malaysia by focusing on innovation and specialization. With our expertise, strong market reputation, and commitment to value creation, we are building a sustainable, forward-looking business that meets the evolving needs of global consumers. The future of palm oil lies in high-value, tailored solutions, and we intend to lead that transformation.

How does PCE envision it's growth over the next five years? What are the key growth directions, and what challenges or expectations do you have for the company's future, particularly regarding employee and shareholder management?

Over the next five years, PCE will focus on value-added products to enhance profitability and ensure sustainable growth. While palm oil remains our core business, we aim to expand into high-value industries such as food, cosmetics, and renewable energy. By strengthening our downstream operations, we can diversify revenue streams and reduce exposure to volatile commodity prices.

At the same time, we will continue improving our upstream operations—enhancing extraction efficiency and maintaining high-quality raw materials. A solid foundation in our core business will support innovation and long-term competitiveness. Integrating technology and sustainable practices will be key to maintaining our leadership in the industry.

Managing competition is an ongoing challenge, but our expertise and reputation give us a strong advantage. Economic fluctuations and shifting consumer trends require careful risk management, and we are committed to navigating these uncertainties with strategic foresight. Employee engagement remains central to our success; a motivated workforce drives our business forward. "Leading the company to its goals cannot be done alone," and we prioritize open communication and proactive problem-solving to keep our team aligned with our vision.

For shareholders, we focus on steady, sustainable growth rather than short-term expansion. Agriculture and food will always be essential industries, and we aim to create long-term value by balancing innovation with financial stability. Transparency and trust are at the core of our investor relations, ensuring confidence in our strategy.

Looking ahead, urbanization will increase demand for agricultural products even as arable land declines. Technology and innovation will be critical in driving efficiency and sustainability. With our deep industry expertise and forward-thinking approach, PCE is well-positioned to lead in this evolving landscape—balancing tradition with innovation, stability with growth, and sustainability with profitability.

Optiwise conducted the interview to provide insight into the foundational business strategies from the perspective of a leading executive at a Thai-listed company, for promotional purposes.