“Osotspa” – The Five Generations Share
Today is the first trading day of Osotspa or OSP. Let’s have a look on how this brand became what it is nowaday, and why people are so hyped about it.
“Osotspa” – the name that was well known in the days of our ancestors and ,surprisingly, is also widely recognized by the majority of Thai people even now. Today, the 127 year old “Osotspa” has been listed in the Stock Exchange of Thailand as one of the public company in the stock market. October 17, 2018 is Osotspa Public Company Limited (OSP)’s first trading day with its IPO at ฿25/share, and, within the calculation, the share soared 20% to reach ฿30/share in a blink of an eye.
What makes OSP so special beside its 127 years of age? The story begins in 1891.
Pae Sae-Lim, the founder of Tek Heng Yu (OSP’s previous name), offered his Chinese herbal medicine to King Rama VI to use in his majesty’s Wild Tiger Corps training. The medicine’s properties are to relieve stomachache that his majesty found to be very effective. Satisfied with the medicine, his majesty bestowed a new surname -Osathanugrah- to Pae Sae-Lim.
The business was delivered to the successor, Sawad Osathanugrah, as the second generation of OSP. Sawad had combined the knowledge of science with herbal medicine to produce new products such as stomachic, cough medicine, and lozenges.
Suratch Osathanugrah is OSP’s third generation. This was when the OSP’s energy drinks made its debut from importing energy drinks from Japan to the Thai market. With all of its succession in energy drinks market, the well known M-150 was made together with other brands that were ready to advance in the international market.
Ratch Osathanugrah, who is OSP’s fourth generation had passed the torch to his older brother, Petch Osathanugrah, to takeover the business. This is where the name Osotspa Company Limited changes to Osotspa Public Company Limited or OSP as a listed company in the Stock Exchange of Thailand, handing the torch to the fifth generation, the shareholders.
The challenge of OSP is to bring out its potential in the energy drink business (M-150, M-Storm, M-Sport, Lipovitan-D, Lipo Plus, Shark etc.), which is reported to be 77% of its revenue, to its fullest.
Meanwhile, OSP has to maintain its balance in other businesses which are commodity, supply chain management and others. This is to enhance other businesses, so that the risk will not fall on only the energy drink business.
OSP has brought Mrs. Kannikar Chalitaporn, former Director of SCB and Unilever Group, Mrs.Wannipa Bhakdibutr, Unilever’s Vice President Health and Beauty Aids, and other executives to help administer OSP’s business.
More importantly, OSP is also aiming to expand its business to international markets as the Thai market is too small, starting with CLMV (Cambodia, Laos, Myanmar and Vietnam).
Of course, OSP is not as mighty as APPLE or Amazon, but it has proved itself through all of the five generations. Will OSP be worthwhile for a long-term investment? We will have to wait and see.