We're running down the richest families in Asia, to round out 2020. Today, we're taking a look at the third richest family in Asia – the Chearavanont family. Their combined $31.7 billion net worth is derived from the Charoen Pokphand Group, a conglomerate with food, retail, and telecom units. The family fortune got its start selling seeds, and today it thrives with, among other things, Slurpees. That's right, the CP Group is the owner of the largest group of 7-Elevens in Thailand.
The Chearavanont empire got started in 1921 when Chia Ek Chor fled his typhoon ravaged village in China for Thailand with a few seeds to grow cabbage, radishes, turnips, and cauliflower. At that time, those vegetables were very hard to find in Thailand. Chia Ek Chor and his brother Chia Seow Hui lived in the Chinatown area of Bangkok, where they faced strong anti-Chinese sentiment. Despite this, the brothers built a seed trading business that grew into one of the largest conglomerates in Southeast Asia.
Dhanin Chearavanont (TORU YAMANAKA/AFP via Getty Images)
Chia Ek Chor's son, Dhanin Chearavanont, was born in Bangkok in 1939. As he grew up, his father and uncle were expanding their business across Asia. Ek Chor sent his son to China and Hong Kong for schooling, laying a strong foundation for his future. Upon returning to Thailand, he worked in a government-controlled slaughterhouse for five years before joining the family business. Dhanin's strength lay in making important connections that were crucial for business growth.
In 1978, when China opened its market to foreign businesses, many companies hesitated to expand into China. However, Chearavanont, having received his education there, was ready to take advantage of the opportunity. His business grew rapidly and diversified into retail, real estate, and automobiles. Notably, he attracted major companies like Honda, Wal-Mart, and Tesco to enter the Chinese market.
By the mid-2000s, the CP Group had opened thousands of 7-Eleven stores across Thailand and Southeast Asia. While his father and uncle laid the groundwork for the business, it was Dhanin's leadership and innovation that led to the company's revival and continued growth. Today, the CP Group is expanding its operations in Russia, the Philippines, and Indonesia.
At 81 years old, Dhanin Chearavanont has handed over the reins to his 53-year-old son, Suphachai Chearavanont, who is the current CEO and Executive Chairman of the CP Group. Raised in Thailand, the Chearavanont family proudly identifies as Thai despite their Chinese roots. Suphachai's educational journey included studying in China, and he later attended Boston University. His experiences have equipped him to steer the company through challenging times, including restructuring company debt.
From 2005 to 2017, Suphachai served as CEO of True Corporation, a subsidiary of the CP Group. He initiated the True Plookpayna project to enhance education for underprivileged children in 6,000 rural schools. In 2016, he succeeded his father as CEO of the CP Group, and under his leadership, the company has continued to thrive even during the COVID-19 pandemic, hiring 20,000 new delivery workers and ensuring no layoffs among its 400,000 employees. Suphachai has also committed the CP Group to carbon neutrality and zero waste by 2030!
| Personal Details | Data |
|---|---|
| Name | Chearavanont Family |
| Net Worth | $31.7 billion |
| Founded | 1921 |
| Headquarters | Bangkok, Thailand |
| Key Industries | Food, Retail, Telecom |
Table of Contents
Family Background
The Chearavanont family began their journey in the early 20th century when Chia Ek Chor fled China. With limited resources, the family overcame challenges and built a thriving business from scratch. The significance of their humble beginnings is a testament to their resilience and determination.
Business Expansion
Under Dhanin's leadership, the CP Group expanded into various industries, including telecommunications and retail. This diversification helped solidify their position as a leading conglomerate in Southeast Asia. Their ability to adapt to market changes has been key to their sustained success.
Leadership Transition
As the company transitioned leadership from Dhanin to Suphachai, it showcased the importance of grooming the next generation. Suphachai's experiences and education have prepared him to lead the company into the future. This transition is vital for maintaining the legacy of the Chearavanont family.
Corporate Social Responsibility
The CP Group has made significant contributions to society, including education initiatives and sustainability commitments. Suphachai's pledge for a carbon-neutral future demonstrates the family’s dedication to responsible business practices. Their efforts reflect a modern approach to corporate responsibility.
