The story of Dhanin Chearavenont and CP Group

Dhanin Cheravenont is the senior chairman of CP Group, Thailand’s largest private company. The group is the world’s largest producer of feed, shrimp and also a global top three producer of poultry, pork and among other agricultural produces. Under Dhanin Cheravenont’s leadership, the company has transformed itself from a company that was mainly focusing on business in Thailand to a global conglomerate that has businesses operated in many parts of the world. Dhanin’s vision in the late 1970s also made CP became the first foreign enterprise to invest in the Chinese market following the Opening Up and Reforms in 1978. CP has now become the single largest investor in Mainland China today commanding over fifth of China’s entire feed meal market.

Dhanin Cheravenont was born in 1939 in Bangkok, Thailand. He was a second generation Thai Chinese of Teochew descent. His father was a first generation Chinese immigrant to Thailand and founded the CP Group. When Dhanin Cheravenont was a teenager his father sent him back to China for secondary education to improve his knowledge on the Chinese language and also his general understanding on Chinese society. He later went to university in Hong Kong to study business and management. These experiences helped to shape his view on China and greatly influenced his later decision to enter the Chinese market in the late 1970s.

When Dhanin Cheravenont was 29 he officially became the the chairman of CP Group and started to lead the transformation of CP from a local business based in Thailand to a conglomerate that has a global ambition. Dhanin Chearvenont utilised on the special advantage of Thailand as an agricultural country to develop his feed and poultry business. One of the secrets behind Dhanin’s success in this area is the determination to source all materials locally. He believed this will greatly decrease the costs of transportation and also guarantee the quality of the products. As a country that has a traditional emphasis on the importance of agriculture, Thailand is a perfect place for an agricultural company like CP to grow. The development of global economy and the improvements in living standards internationally also had a positive impact on the growth and expansion of CP. As people’s living standards gradually improve, the demand for agricultural and meat products also increase as a result. A rise in population in developing countries also helped to expand the business and influence of CP Group. Overall, Dhanin summarised the main reason behind the success of his company as the inherent natural advantage of Thailand.

CP Group is not just a normal Forbes Fortune 500 company, it is a company that has a historical connection with China and the Chinese people. CP Group is the first foreign enterprise to enter and invest in the Chinese market following the Opening Up and Reforms policy in 1978. Dhanin’s teenage experience in China convinced him that the Opening Up and Reforms policy is a policy that will fundamentally change the development of modern Chinese history and also a great opportunity for foreign businesses like CP to enter the largest market in the world. Following the Opening Up and Reforms, China will become a mixed economy rather than an orthodox command economy. This will mean that there will be a greater incentive for Chinese people to consume. Dhanin firmly believed that the golden opportunity for CP has arrived. As the first foreign enterprise investing in China, CP has operated businesses in different sectors of the economy. These include animal feed, motorcycle manufacturing, real estate and telecommunications. Dhanin also established great connections with the Chinese government and many state-owned enterprises. Dhanin now owned 30.65% of the shares of China Pingan and 20.61% of the shares of Citic Group. Which are two of the largest and most influential state-owned enterprises in China. CP Group has also invested greatly in the early stage of the entertainment industry in China. In the early 1980s, CP Group has created Zhengda Variety Show and this show quickly became one of the most favourite shows for Chines television audience. The show also helped to secure the brand image and popularity of CP Group among Chinese consumers. They were more inclined to purchase CP products after watching CP sponsored television programmes.

Dhanin Cheravenont also summarised his business secret and philosophy during multiple interviews. Dhanin greatly values the importance of talents in his company, he firmly believes that specialised area must be administered by industry experts. Throughout his career he has also hired over hundred PhD degree holders to be part of his advisory board on forming long term strategies and plans for the group. He believes that humility is the key on holding these talents together and also making them loyal and dedicated to the company. Even if you are the chairman, you must respect the advice and strategy given by the professionals and specialists. Always stay humble in front of industry experts, for they know things that you don’t necessarily know well. Dhanin is also an entrepreneur who thinks about the future and certainly a business leader with a long term vision. He famously said that I work for the future, my other senior management team and employees work for now. He believes that it is the responsibility of the leader to think about what will happen to the group in the future and what are some of the future opportunities await. Dhanin also follows global news very carefully and believes that technological innovation is the main driver behind the success of future companies. In order to survive in the constantly evolving market, CP must keep investing in technological development in its current products and services. Keep making new changes and new progress, get beyond the current boundary and think differently.

Dhanin Cheravenont is surely the most successful Thai businessman in history and also one of the most famous and celebrated overseas Chinese businessman. His personal journey and his story with CP can certainly offer business leaders great wisdom on management and leadership. Value your talents, always think about the future and constantly challenging yourself and your colleagues to get beyond the boundary are some of the main secrets behind his success.