ABOUT US

HERITAGE

At the heart of every truly great company are founders with a driving passion to make a difference, to create products and services that benefit customers and society as a whole. Of these companies, those that succeed in the long term have management with the vision and persistence to adapt and innovate. For KPN Corporation Limited, founders Khunying (Lady) Phornthip Narongdej and her husband Dr. Kasem Narongdej exemplified exactly this combination of passion and persistence.

A PASSIONATE PAST

Established in 1979, KPN Group Corporation Limited (KPN) is a conglomerate with diversified holdings and a corporate structure that has evolved over the decades in line with Thailand’s shifting economic landscape.


For years, KPN’s core identity was that of an automotive manufacturer. As Chief Executive Officer of Siam Motors Group, the late Khunying Phornthip Narongdej enjoyed remarkable and noted success and nurtured the Group to become amajor industry player. Indeed, the company was the first in Thailand to import Japanese automobiles and heavy machinery, a credit to the vision of Dr. Thaworn Phornprapha, Khunying Phornthip’s father and the company’s founder. Whilst CEO, Khunying Phornthip grew the company’s annual sales turnover to over USD 2,500 million


Armed with this unparalleled expertise in the automotive sector, Khunying Phornthip and Dr. Kasem established KPN as their wholly owned business, etching their partnership through their initials in the Group’s name– Dr. Kasem and Khunying Phornthip Narongdej.


The formation of KPN coincided with when the Japanese automotive and motorcycle industry first used Thailand as a manufacturing base. It started off as the sole manufacturer and distributor of Yamaha motorcycles. Consequently, the Group expanded rapidly into stamping, casting, and forging metal parts, and producing various electric, electronic, and plastic components for various marques. The Group produced components and parts for up to 80% of the market’s needs when manufacturing was KPN’s primary business.


Less known perhaps during this period was KPN’s extensive involvement in the service sector with businesses such as logistics, automotive leasing, automobile spare part sales and distribution, and the import-export of motorcycle parts.


Over the years, as manufacturing bases in various industries began to shift out of Thailand, KPN leadership assessed the Group’s holdings and re-aligned investments to better retain its competitive advantage. Thus, the Group began to actively reduce its role in manufacturing businesses from being an operational majority shareholder to a minority shareholder, and in some cases, completely divesting from the business. At the same time, the Group also began to diversify into new industries, and invest in existing businesses with brighter growth prospects.

Our present business

During this transition period, KPN Music Academy rose to prominence under the leadership of Nop Narongdej, Khunying Phornthip’s middle son and current Chairman Executive Committee of KPN Group.


Promising potential for greater growth is also evident in the Music & Education business, which already sees KPN Group reach upwards of 500,000 students nationwide through its eLearning curriculum, positioning it as the leading educator in Thailand. As a pioneer and innovator in a sector with relatively few large private competitors, growth-oriented developments mean the business is now poised for significant expansion.


These include a partnership formed in 2014 with The Abraaj Group, a leading investor operating in global growth markets, which means regional expansion is well within reach. Harnessing its expertise in music education, KPN also recently expanded its subject offerings to academic subjects, from mathematics, physics, chemistry, to biology, the fast-growing Chinese-language sector and even sport.


From the outset, music had long been a personal interest of Khunying Phornthip, which led her to develop quality music education in Thailand. Interestingly, it is the “Thailand Singing Contest” which continues to gain the greatest publicity for the Group – being Thailand’s only music competition that bestows HM the King’s Awards. In 2010, the singing contest was significantly refreshed and renamed the KPN Award, and continues to thrive under the leadership of Korn Narongdej.


Until the present day, KPN Award is now one of the top seasonal programs on broadcasting live production with over 1,000 live audiences and not to mention over millions of viewers at home.


In 2011, Khun Kris Narongdej, eldest of three Narongdej boys and Chairman of KPN Group, diversified into the real estate business both domestically and abroad. With Kris’ conviction for excellence and his passion for the business, it has propelled the real estate sector to become the core business of the Group. KPN currently has 4 projects valued at over USD 300 million consisting of The Capital (Rajprarop-Vibha), The Capital (Ekamai-Thonglor), The Diplomat Sathorn and The Diplomat 39—all or which achieved sales revenues exceeding 80 percent within their first month of sales.


In 2013-2014, KPN Group initiate Investments business, the Group is focused on innovating and breaking new ground in a range of high-potential industries. Partnerships are also an increasingly important avenue for growth. Two salient examples include a partnership with WHA Corporation Public Company Limited, which has resulted in the construction of one of Bangkok’s largest built-to-suit warehouses, and a joint-venture with Kinrei Corporation to bring Kagonoya, a Japanese restaurant chain to Thailand. Both have and will continue to reap profitable rewards for KPN Group.


In 2015, the Narongdej family further diversified into the Renewable Energy sector focusing on wind energy. All current developments are located in Thailand with production capacity of 210 MW, translating into EBITDA of USD 30 million, which are the largest of its kind in South East Asia. By the 2018 production capacity is projected at 850 MW with EBITDA at 170 million.

A Strong Future

KPN Group’s rich heritage has given it rock solid foundations for sustainable growth, with businesses in
Property, Music and Education, Renewable Energy, Investments, and Entertainment.
In areas of business that present ample room for growth both organically or through appropriate acquisitions or forming business partnerships, KPN Group is steadfast in continuously growing and diversifying its evolving identity

NEXT GENERATION

Kris Narongdej

Chairman

Nop Narongdej

Chairman of the Executive Committee

Korn Narongdej

Vice President