STRATEGY TO FOCUS ON CORE BUSINESSES

       The Wattanavekin family plans to expand its key businesses-hotels and sugar mills.
       Khunying Natthika Wattanavekin said the family has developed a new strategy for its hotel business, which is run by The Erawan Group, an equal joint venture between the Wattanavekin and Wongkusolkit families. The latter operates the Mitrphol Sugar Group of sugar-mill operators.
       "We have delayed about four new hotel projects, mainly upcountry, including the I-Bis hotel in Hua Hin. We will focus on refurbishing our existing hotel properties, such as the Grand Hyatt [Erawan] in Bangkok and the Hyatt Regency in Hua Hin, to prepare for the recovery of the local tourism sector, which is expected next year," said Natthika, who is on the board of directors at the Grand Hyatt Erawan Hotel.
       The Erawan Group operates 15 hotels run by international chains including Grand Hyatt, JW Mariott, Courtyard, Renaissance, I-Bis and Sixth Sense. The group recently opened a 300-room Holiday Inn in Pattaya.
       "Three to four years ago, we launched our strategy, selling Amarin Plaza, a shopping complex at the Ratchprasong internation, back to the landlord so that we could concentrate on constructing and developing hotels, which is our field of expertise.
       "After building them, we appoint international chains to run our hotel properties," said Natthika.
       She said the group had set an investment budget of about Bt200 million to renovate the eight-year-old Hyatt Regency Hua Hin.
       "So far this year we have renovate half of the 211 guestrooms and the lobby of our Hyatt Regency Hua Hin hotel. The renovations of the rest of the hotel's guestrooms and the Regency Club will be completed by the end of this year" said Natthika.
       She said the group would also renovate the balcony area of the Grand Hyatt Erawan by the end of this year to include a restaurant serving international cuisine.
       "We have also restructured The Erawan Group by promoting top executives to the board of directors," said Natthika.
       Natthika said the Wattanavekin family had three major business groups, which include both joint ventures and owned firms: the hotel group, the sugar-mill business, and the Kiatnakin Group of banks and financial institutions.
       "We run the businesses professionally, transparently and according to the ethical code and philosophy of my father, Kiat Wattanavekin, founder of the Kiatnakin Group," she said, adding that the family started in the liquor and construction businesses before diversifying into sugar milling and finance about 50 years ago.
       Natthika is also chairman and CEO of Eastern Sugar Group, which operates a sugar will in Sa Kaew province.
       The group recently upgraded the processing machines at the sugar mill to increase production capacity to 21,000 tonnes a day from 18,000 tonnes.
       "We have received permission from the local authorities to increase our production capacity by another 12,000 tonnes a day.
       "We will complete this additional expansion within the next three to five years," she said.
       Natthika said the group recently expanded its sugar operation by producing ethanol from molasses. With an additional investment of more than Bt1 billion, the factory is now able to produce 150,000 litres of ethanol a day.
       Applying the Alfa Lava and Delta T production system originated in the US, the factory is able to produce ethanol from both sugar molasses and tapioca chips.
       Natthika, who is also chairman of the Thai Sugar and Bio-Energy Producers Association, said the government should draw up medium-and long-term plans to support and promote the productivity of local sugarcane farmers, especially in the areas of water resources, and research and development of news sugar-cane genes.