Perlis Plantations Bhd
Encyclopedia
PPB Group Berhad is a diversified company which was incorporated in November 1968, and its business beginning with cultivating sugar cane and to extract, process and market sugar. In May 1972, PPB was listed on both the stock exchanges in Kuala Lumpur and Singapore with an issued and paid-up capital of RM15.0 million.
Today, PPB Group Berhad ranks among the top companies listed on the Bursa Malaysia Securities Berhad by turnover as well as assets. Its total assets exceed RM5.8 billion and workforce numbers more than 15,000 employees. PPB is also the single largest shareholder owning 18.3% equity interest in one of Asia's largest integrated agribusiness groups, Wilmar International
Limited which operates in more than 20 countries across four continents and has over 300 processing plants.
Through rapid organic growth and strategic acquisitions and joint ventures, PPB Group Berhad is now one of the most diversified conglomerate
s in Asia engaged in a wide spectrum of activities ranging from sugar
refining
, flour
and feed
milling
, edible oils processing, oil palm cultivation, environmental engineering and waste management, film exhibition and distribution, property development to commodity trading. Overseas, the Group currently has operations in Vietnam
, Myanmar
and Singapore
; and plans to expand further into China
and other ASEAN countries.
With over 30 years of commitment to hard work and excellence, PPB Group Berhad has well positioned itself to be a market leader in all its core businesses.
PPB was established on 1 November 1968 to undertake large-scale cultivation and milling of sugar cane in Chuping
, Perlis
, in response to the Government’s encouragement to establish a local sugar industry. PPB and FELDA each set aside about 44.5 km² of land for the sugar project and both parties established a 50:50 joint venture
sugar cane mill and refinery under Kilang Gula Felda Perlis Sdn Bhd (KGFP) to process the canes from both plantations.
PPB offered its shares to the public both listed on the Stock Exchange of Malaysia and Singapore, in May, with an issued and paid-up capital of RM15.0 million.
In the first harvesting season, KGFP commenced production with a total sugar output of 8,500 tonnes. The year ended 30 September 1974, PPB achieved its first pre-tax profit of RM2.0 million on a turnover of RM9.3 million.
PPB subsequently embarked on a diversification programme without dependent on the vagaries of one crop. PPB acquired Malayan Sugar Manufacturing Company Berhad (MSM), which operates Malaysia’s largest sugar refinery at Prai, Province Wellesley and thus became a vertically integrated organization engaged in all aspects of the sugar industry from cane growing to sugar milling, refining and distribution. Through MSM, PPB also became indirectly involved in the hotel industry, polybags manufacturing and bulking operations.
Further expanded into property development, tin mining and rubber plantations through the acquisition of Mineral Securities Malaysia Berhad (now known as Minsec Properties Berhad). Mineral Securities’ principal asset then was its holding in public-listed Rahman Hydraulic Tin Berhad (RHTB), subsequently disposed of its 41.8% equity interest in RHTB in the open market.
Acquired the entire issued capital of South Island Mining Company Sdn Bhd which operates mining leases for iron ore and a rubber plantation near Sungei Petani, Kedah
.
Tai Yan Realty Sdn Bhd (now known as PPB Hartabina Sdn Bhd) which is the developer of Taman Segar in Cheras
, Kuala Lumpur
became a wholly owned subsidiary of PPB. PPB Hartabina owns Cheras Leisure Mall and Cheras Plaza. PPB acquired 34% equity interest in Shaw Brothers (M) Sdn Bhd (SBM), which owns properties in major towns throughout Malaysia.
To complement the Group's property development activities, PPB ventured into retail operations through Chujitsu Superstore Sdn Bhd (now known as Tops Retail (Malaysia) Sdn Bhd. PPB ventured into oil palm cultivation in Sarawak
through Saremas Sdn Bhd to establish an oil palm plantation on 99 km² of land in the Suai District of the Fourth Division.
PPB made takeover offers for Rasa Sayang Beach Hotels (Pg) Berhad (now known as Shangri-La Hotels (Malaysia) Berhad [SHMB]) and Federal Flour Mills Berhad (now known as FFM Berhad [FFM]) which resulted in the two companies becoming subsidiaries of PPB. The takeover of FFM enabled PPB to diversify into flour and animal feed milling, edible oil processing and commodity trading. PPB acquired 60% equity interest in Sapi Plantations Sdn Bhd to operate a fully integrated oil palm project over 142 km² of land near Sandakan, Sabah. The Sapi Plantations project was another step towards making oil palm cultivation a core business of the PPB Group. PPB entered a joint venture with Golden Harvest (International) Ltd of Hong Kong to establish Golden Communications (M) Sdn Bhd (now known as Golden Screen Cinemas Sdn Bhd) which now operates a chain of cinemas throughout the country including an 18-screen cineplex in Kuala Lumpur, the largest in South East Asia.
To further expand its cinema operations, PPB acquired Borneo Filem Organization (M) Sdn Bhd (now known as PPB Leisure Holdings Sdn Bhd) which owned the Cathay cinema chain in Malaysia.
SHMB and UBN Holdings Sdn Bhd were merged and SHMB was listed on the Main Board of the Kuala Lumpur Stock Exchange in December.
PPB subscribed for 40% equity interest in Chemquest Sdn Bhd (Chemquest) which is principally involved in waste management, trading of chemicals and infrastructure. In 1998, PPB increased its stake in Chemquest to 55% and it is now the manufacturing and services division of PPB. PPB ventured into Indonesia through PT Healthcare Glovindo (Glovindo) which presently owns and operates a 17-line glove factory and a chlorination plant in Medan
, Sumatra
. Glovindo commenced production with 8 lines in late 1993.
In August, PPB expanded its oil palm investments into Indonesia by subscribing for 70% equity interest in PT Tidar Sungkai Sawit which owns a 102.16 km² oil palm plantation in Sumatra.
The East Malaysian oil palm plantation companies owned by PPB were merged under PPB Oil Palms Berhad (PPBOP) which was listed on the Main Board of the Kuala Lumpur Stock Exchange in August.
In October, PPB Group disposed of its 26.09% equity interest in SHMB to Shangri-La Asia Limited (SAL) in exchange for SAL shares.
In May, the name of the Company was changed from “Perlis Plantations Berhad” to “PPB Group Berhad” to better reflect its business activities. PPB ceased its retailing activities following the divestment of its 34.8% stake in Tops Retail (Malaysia) Sdn Bhd and the closure of its discount stores. The Group's edible oils refining operations under FFM and PPBOP were merged under a new entity, Struktur Idaman Sdn Bhd (now known as PGEO Group Sdn Bhd), to improve competitiveness and refining margins. Konsortium ABASS Sdn Bhd, 25% associated company of Chemquest, signed a Privatization and Concession Agreement with the State Government of Selangor for the operation and maintenance of the Sungei Semenyih Dam and Water Treatment Plant and other water related works for a period of 30 years.
Divested its hotel investment of 25% and 20% equity interest in Pantai Dalit Beach Resort Sdn Bhd and Tanjong Aru Hotel Sdn Bhd respectively.
PPB privatize its then 54.23% subsidiary, FFM Berhad, by way of a members’ scheme of arrangement
under section 176 of the Companies Act, 1965. FFM was delisted from Bursa Malaysia and is a wholly owned subsidiary of PPB.
PPB received an offer from Wilmar International Limited (Wilmar) in 2006 to acquire from FFM Berhad its 65.8% and 28% equity interest in PGEO Group and Kuok Oils & Grains Pte Ltd respectively. PPB Oils Palm Berhad, a 55.6% subsidiary of PPB also received a Notice of Conditional Voluntary Offer from Wilmar to acquire all of its shares under the Malaysian Code on Takeovers and Mergers 1998 on the basis of 2.3 new Wilmar shares for every PPBOP share acquired.
In February 2007, PPB Leisure Holdings Sdn Bhd completed the acquisition of 40.2% interest in Golden Screen Cinemas Sdn Bhd (GSC) from Golden Harvest Films Distribution Holding Ltd making GSC a 94.4% subsidiary of the Group.
Today, PPB Group Berhad ranks among the top companies listed on the Bursa Malaysia Securities Berhad by turnover as well as assets. Its total assets exceed RM5.8 billion and workforce numbers more than 15,000 employees. PPB is also the single largest shareholder owning 18.3% equity interest in one of Asia's largest integrated agribusiness groups, Wilmar International
Wilmar International
Wilmar International Limited founded in 1991, is Asia’s leading agribusiness group. It ranks amongst the largest listed companies by market capitalisation on the Singapore Exchange...
Limited which operates in more than 20 countries across four continents and has over 300 processing plants.
Through rapid organic growth and strategic acquisitions and joint ventures, PPB Group Berhad is now one of the most diversified conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
s in Asia engaged in a wide spectrum of activities ranging from sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
refining
Refining
Refining is the process of purification of a substance or a form. The term is usually used of a natural resource that is almost in a usable form, but which is more useful in its pure form. For instance, most types of natural petroleum will burn straight from the ground, but it will burn poorly...
, flour
Flour
Flour is a powder which is made by grinding cereal grains, other seeds or roots . It is the main ingredient of bread, which is a staple food for many cultures, making the availability of adequate supplies of flour a major economic and political issue at various times throughout history...
and feed
Feed
Feed may refer to:In animal foodstuffs:* Compound feed, feedstuffs that are blended from various raw materials and additives* Fodder , any foodstuff that is used specifically to feed domesticated livestockIn computing:...
milling
Mill (grinding)
A grinding mill is a unit operation designed to break a solid material into smaller pieces. There are many different types of grinding mills and many types of materials processed in them. Historically mills were powered by hand , working animal , wind or water...
, edible oils processing, oil palm cultivation, environmental engineering and waste management, film exhibition and distribution, property development to commodity trading. Overseas, the Group currently has operations in Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
, Myanmar
Myanmar
Burma , officially the Republic of the Union of Myanmar , is a country in Southeast Asia. Burma is bordered by China on the northeast, Laos on the east, Thailand on the southeast, Bangladesh on the west, India on the northwest, the Bay of Bengal to the southwest, and the Andaman Sea on the south....
and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
; and plans to expand further into China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
and other ASEAN countries.
With over 30 years of commitment to hard work and excellence, PPB Group Berhad has well positioned itself to be a market leader in all its core businesses.
Business structure
PPB Group has its headquarters in Kuala Lumpur, Malaysia. The Group is well-diversified conglomerate engaged in a wide spectrum of activities:- Foods
- Plantations
- Manufacturing & Services
- Entertainment
- Property Development
History
- 1968–1969
PPB was established on 1 November 1968 to undertake large-scale cultivation and milling of sugar cane in Chuping
Chuping
Chuping is a small town in Perlis, Malaysia. It is located to the northeast of Kangar, the state capital. The town has 22,000 hectares of plantations, which consist of rubber estates and the largest sugar cane plantation in Malaysia....
, Perlis
Perlis
Perlis is the smallest state in Malaysia. It lies at the northern part of the west coast of Peninsular Malaysia and has Satun and Songkhla Provinces of Thailand on its northern border. It is bordered by the state of Kedah to the south...
, in response to the Government’s encouragement to establish a local sugar industry. PPB and FELDA each set aside about 44.5 km² of land for the sugar project and both parties established a 50:50 joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
sugar cane mill and refinery under Kilang Gula Felda Perlis Sdn Bhd (KGFP) to process the canes from both plantations.
- 1972
PPB offered its shares to the public both listed on the Stock Exchange of Malaysia and Singapore, in May, with an issued and paid-up capital of RM15.0 million.
- 1973–1974
In the first harvesting season, KGFP commenced production with a total sugar output of 8,500 tonnes. The year ended 30 September 1974, PPB achieved its first pre-tax profit of RM2.0 million on a turnover of RM9.3 million.
- 1976
PPB subsequently embarked on a diversification programme without dependent on the vagaries of one crop. PPB acquired Malayan Sugar Manufacturing Company Berhad (MSM), which operates Malaysia’s largest sugar refinery at Prai, Province Wellesley and thus became a vertically integrated organization engaged in all aspects of the sugar industry from cane growing to sugar milling, refining and distribution. Through MSM, PPB also became indirectly involved in the hotel industry, polybags manufacturing and bulking operations.
- 1979
Further expanded into property development, tin mining and rubber plantations through the acquisition of Mineral Securities Malaysia Berhad (now known as Minsec Properties Berhad). Mineral Securities’ principal asset then was its holding in public-listed Rahman Hydraulic Tin Berhad (RHTB), subsequently disposed of its 41.8% equity interest in RHTB in the open market.
- 1980
Acquired the entire issued capital of South Island Mining Company Sdn Bhd which operates mining leases for iron ore and a rubber plantation near Sungei Petani, Kedah
Kedah
Kedah is a state of Malaysia, located in the northwestern part of Peninsular Malaysia. The state covers a total area of over 9,000 km², and it consists of the mainland and Langkawi. The mainland has a relatively flat terrain, which is used to grow rice...
.
- 1982–1983
Tai Yan Realty Sdn Bhd (now known as PPB Hartabina Sdn Bhd) which is the developer of Taman Segar in Cheras
Cheras, Kuala Lumpur
Cheras is a suburb of Kuala Lumpur, the capital city of Malaysia. The township is located to the south-east of Kuala Lumpur. Cheras is also adjacent to Ampang to the north and Kajang to the south, both of which are major cities within the metropolitan area of Kuala Lumpur.-Origins:Originally,...
, Kuala Lumpur
Kuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
became a wholly owned subsidiary of PPB. PPB Hartabina owns Cheras Leisure Mall and Cheras Plaza. PPB acquired 34% equity interest in Shaw Brothers (M) Sdn Bhd (SBM), which owns properties in major towns throughout Malaysia.
- 1986
To complement the Group's property development activities, PPB ventured into retail operations through Chujitsu Superstore Sdn Bhd (now known as Tops Retail (Malaysia) Sdn Bhd. PPB ventured into oil palm cultivation in Sarawak
Sarawak
Sarawak is one of two Malaysian states on the island of Borneo. Known as Bumi Kenyalang , Sarawak is situated on the north-west of the island. It is the largest state in Malaysia followed by Sabah, the second largest state located to the North- East.The administrative capital is Kuching, which...
through Saremas Sdn Bhd to establish an oil palm plantation on 99 km² of land in the Suai District of the Fourth Division.
- 1987
PPB made takeover offers for Rasa Sayang Beach Hotels (Pg) Berhad (now known as Shangri-La Hotels (Malaysia) Berhad [SHMB]) and Federal Flour Mills Berhad (now known as FFM Berhad [FFM]) which resulted in the two companies becoming subsidiaries of PPB. The takeover of FFM enabled PPB to diversify into flour and animal feed milling, edible oil processing and commodity trading. PPB acquired 60% equity interest in Sapi Plantations Sdn Bhd to operate a fully integrated oil palm project over 142 km² of land near Sandakan, Sabah. The Sapi Plantations project was another step towards making oil palm cultivation a core business of the PPB Group. PPB entered a joint venture with Golden Harvest (International) Ltd of Hong Kong to establish Golden Communications (M) Sdn Bhd (now known as Golden Screen Cinemas Sdn Bhd) which now operates a chain of cinemas throughout the country including an 18-screen cineplex in Kuala Lumpur, the largest in South East Asia.
- 1990
To further expand its cinema operations, PPB acquired Borneo Filem Organization (M) Sdn Bhd (now known as PPB Leisure Holdings Sdn Bhd) which owned the Cathay cinema chain in Malaysia.
- 1992
SHMB and UBN Holdings Sdn Bhd were merged and SHMB was listed on the Main Board of the Kuala Lumpur Stock Exchange in December.
- 1993
PPB subscribed for 40% equity interest in Chemquest Sdn Bhd (Chemquest) which is principally involved in waste management, trading of chemicals and infrastructure. In 1998, PPB increased its stake in Chemquest to 55% and it is now the manufacturing and services division of PPB. PPB ventured into Indonesia through PT Healthcare Glovindo (Glovindo) which presently owns and operates a 17-line glove factory and a chlorination plant in Medan
Medan
- Demography :The city is Indonesia's fourth most populous after Jakarta, Surabaya, and Bandung, and Indonesia's largest city outside of Java island. Much of the population lies outside its city limits, especially in Deli Serdang....
, Sumatra
Sumatra
Sumatra is an island in western Indonesia, westernmost of the Sunda Islands. It is the largest island entirely in Indonesia , and the sixth largest island in the world at 473,481 km2 with a population of 50,365,538...
. Glovindo commenced production with 8 lines in late 1993.
- 1995
In August, PPB expanded its oil palm investments into Indonesia by subscribing for 70% equity interest in PT Tidar Sungkai Sawit which owns a 102.16 km² oil palm plantation in Sumatra.
- 1997
The East Malaysian oil palm plantation companies owned by PPB were merged under PPB Oil Palms Berhad (PPBOP) which was listed on the Main Board of the Kuala Lumpur Stock Exchange in August.
- 1999
In October, PPB Group disposed of its 26.09% equity interest in SHMB to Shangri-La Asia Limited (SAL) in exchange for SAL shares.
- 2000
In May, the name of the Company was changed from “Perlis Plantations Berhad” to “PPB Group Berhad” to better reflect its business activities. PPB ceased its retailing activities following the divestment of its 34.8% stake in Tops Retail (Malaysia) Sdn Bhd and the closure of its discount stores. The Group's edible oils refining operations under FFM and PPBOP were merged under a new entity, Struktur Idaman Sdn Bhd (now known as PGEO Group Sdn Bhd), to improve competitiveness and refining margins. Konsortium ABASS Sdn Bhd, 25% associated company of Chemquest, signed a Privatization and Concession Agreement with the State Government of Selangor for the operation and maintenance of the Sungei Semenyih Dam and Water Treatment Plant and other water related works for a period of 30 years.
- 2001–2002
Divested its hotel investment of 25% and 20% equity interest in Pantai Dalit Beach Resort Sdn Bhd and Tanjong Aru Hotel Sdn Bhd respectively.
- 2003–2004
PPB privatize its then 54.23% subsidiary, FFM Berhad, by way of a members’ scheme of arrangement
Scheme of arrangement
A scheme of arrangement is a court-approved agreement between a company and its shareholders or creditors...
under section 176 of the Companies Act, 1965. FFM was delisted from Bursa Malaysia and is a wholly owned subsidiary of PPB.
- 2006–2007
PPB received an offer from Wilmar International Limited (Wilmar) in 2006 to acquire from FFM Berhad its 65.8% and 28% equity interest in PGEO Group and Kuok Oils & Grains Pte Ltd respectively. PPB Oils Palm Berhad, a 55.6% subsidiary of PPB also received a Notice of Conditional Voluntary Offer from Wilmar to acquire all of its shares under the Malaysian Code on Takeovers and Mergers 1998 on the basis of 2.3 new Wilmar shares for every PPBOP share acquired.
In February 2007, PPB Leisure Holdings Sdn Bhd completed the acquisition of 40.2% interest in Golden Screen Cinemas Sdn Bhd (GSC) from Golden Harvest Films Distribution Holding Ltd making GSC a 94.4% subsidiary of the Group.