Malaysia's Felda Global aims for eightfold sales rise by 2020
CK TAN, Nikkei staff writer
KUALA LUMPUR -- Malaysian agribusiness Felda Global Ventures Holdings (FGV) has revealed plans to increase its revenue eightfold to 100 billion ringgit ($31 billion) by 2020 through an expansion of its six core businesses.
FGV said it aims to retain its market position as the largest producer of unprocessed palm oil with the largest landholdings. Currently, it manages 4,500 sq. km of plantations in Malaysia and Indonesia.
In its downstream business, which produces industrial fats and palm-based consumer goods such as cooking oil, biodiesel and soap, the company intends to make higher margin and high-growth products.
The company recently restructured its operations into six groups: upstream and downstream, sugar, rubber, R&D and logistics. Under its new leadership, FGV hopes to become a top-10 agribusiness globally.
"The eightfold growth target will significantly shift FGV's global competitive position," said Mohd Emir Mavani Abdullah, the group's president and CEO, in a press release on Monday. The conglomerate is also mulling plans to list some of its subsidiaries to raise money for the expansion, according to local news reports. FGV is looking to expand its plantations in Southeast Asia, and to acquire rubber mills in Myanmar and Cambodia.
In 2013, FGV had sales of 12.6 billion ringgit and a net profit of 981 million ringgit. That fell short of market forecasts, due to a decline in prices for crude palm oil and weakness in its downstream businesses.
Another Malaysian plantation conglomerate, Sime Darby, aims to double its market capitalization to 100 billion ringgit by 2016.