Charoen Sirivadhanabhakdi: Thai beer magnet & Heineken rival

Source: NASDAQ

8/10/2012

The life of Charoen Sirivadhanabhakdi is like a capitalist fairy tale.

His rags-to-riches story highlights both the entrepreneurial prowess of Thailand ( THD , quote ) and potentially the ability of Asian breweries to compete against larger Western ones.

A Bangkok-born son of a street vendor, through savvy maneuvers and a considerable business acumen, Sirivadhanabhakdi has risen to become one of Thailand's most powerful businessmen.

Sirivadhanabhakdi found success in the brewing industry; His conglomerate, TCC Group, is the owner of Thai Beverage Pcl ( TBVPF , quote ). The company manages such iconic brands as Chang Beer , well known throughout Asia and the world. The Chang brand has risen to prominence throughout the world thanks to effective marketing, such as sponsoring the kits for English football club Everton FC.

In addition to breweries, Sirivadhanabhakdi's TCC Group is heavily involved in real estate. The privately held TCC Land owns and runs commercial centers and hotels both in Thailand and abroad.

However, the company's beverage component remains the firm's bread and butter operation. So it's of little surprise that TCC Group is butting heads with other multinational brewers over an alcohol producer in Singapore.

TCC Group has placed a bid to acquire a $1.6 billion stake in Singapore-based drinks and property group Fraser and Neave . Through its Asia-Pacific Breweries joint venture with Heineken ( HINKY , quote ), the group manages the famed Tiger Beer brand, in addition to some lesser known names like Anchor, DB Bitter, and Tui.

Evidently, the company is attempting to consolidate its share in the booming Southeast Asian market; however, TCC's overtures have irked Fraser and Neave's largest shareholder, Heineken. Perceiving the move as an infringement upon Heineken's investment, the world's third-largest brewer is not impressed.

Whether or not TCC's bid is ultimately successful remains to be seen. However, the group's business wherewithal can be interpreted as a positive harbinger for the future of the Thai economy as a whole. If the country continues to produce entrepreneurs of the caliber of Sirivadhanabhakdi, Thailand will be well-placed to thrive in the 21st century .