Luffala Project


PTT Global Chemical Plc

 
The project’s ultimate goal is to encourage community-based improvement and to aid housewives in gaining additional income and career opportunities, eventually leading to sustainable development society.

INTRODUCTION

The “Luffala” project was initiated in 2010 by PTTGC in order to build better lives for local communities in the Rayong Province, Thailand by increasing local knowledge values, opportunities and incomes. It is a partnership project balancing needs of stakeholders; PTTGC’ resources, academic expertise (Mae Fah Luang University), and local wisdom and community participation (Nong Fab community). The stakeholders’ dialogue was accomplished by exchanging ideas to finalize the project in terms of management and operations. Stakeholder engagement is one of our top priorities in building long term good relationships, and trust. The project’s ultimate goal is to encourage community-based improvement and to aid housewives in gaining additional income and career opportunities, eventually leading to sustainable development society.

The project was registered as a Small and Micro Community Enterprise in 2011, and also won the inaugural Asia-Pacific Leadership Awards (APELA) in the Social Service Award category in 2013.

FRAMEWORK AND STRATEGY

Having thoroughly surveyed the communities’ lifestyles, PTTGC saw an opportunity in the economic development of the area in line with its vision. The “Luffala” project takes into account homegrown herbal plants and accompanying local wisdom together with Glycerine, a PTTGC’s product, to produce natural spa products. Participating housewives have been trained by PTTGC staff for marketing, accounting, inventory management and innovation, and were also trained by academic expertise for the spa product. The project is reviewed annually to continuously improve its efficiency. Product diversification developments were found to be essential, e.g. shower gels, body lotions and gift sets. The production site and distribution center were renewed, and the showroom renovated, to serve more customers. The distribution of “Luffala” products has been expanded nationwide, for example, at Jiffy Convenient stores at PTT’s gas stations, PatPat shops, and leading souvenir shops.

ACHIEVEMENT AND IMPACT

For 3 years of operation, the project has generated income to participating housewives. In 2013, about 2,500 Baht/month had been distributed, and furthermore, career opportunities have sprouted for the local community. A 3rd party annual survey has illustrated the high level of satisfaction the community has had with this project, as people both gain additional income and have the chance to join the project in their free time. This project also unites the community and PTTGC to create and develop sustainability through social enterprise as a role model. Overall the project is successful in meeting with its objectives to create mutual values for PTTGC’s operation area in Rayong.

The project won the 2013 Asia-Pacific Enterprise Leadership Awards (APELA) in the category of Social Service Award from The Asia-Pacific Enterprise Cooperation (AP-EC), Singapore, both recognizing a high level of social responsibility and proactivity for change.

FUTURE DIRECTION

PTTGC plans to enhance the project’s business management ability and capacity to efficiently move forward to Cooperation and Small and Medium Enterprise. PTTGC signed an MOU agreement with the Institute for Small and Medium Enterprises Development (ISMED) on Collaboration in developing the “Luffala” project Community Enterprise management. The scope of the MOU covers manpower skill development, community engagement for a local-area network for sustainable raw materials sourcing, collaboration and connection to build for market opportunity, and distribution channels in order to enhance product sale capacity. The results will shape the project management to be more systematic, and ready for expansion to nearby communities in Rayong.

Furthermore, PTTGC will conduct the study on full Social Return in Investment (SROI) of the “Luffala” project to quantify tangible benefits for the community. PTTGC drives change to deliver a better tomorrow for the society in 5 areas of CSR project; social, education, environment, economics and health.
PTT Global Chemical Public Company Limited (PTTGC) is Thailand’s largest integrated petrochemical and refining company that maintains its growth in business combined with social and community development, and is committed to the sustainable practices in accordance with international policy frameworks and standards.