PPBGroup

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PPBGroupBerhadisaMalaysian
diversifiedconglomeratewhich
engagesinfoodproduction,
agriculture,wastemanagement,film
distribution,propertyinvestmentand
development.PPBisalsothesingle
largestshareholderthroughan18
percentstakeinWilmarInternational,
oneoftheleadingpalmoilproducers
andagribusinesscompaniesinthe
world.
Thecompanywasfoundedin1968as
PerlisPlantationsBerhad(fromwhich
itderivesitscurrentname)byRobert
Kuoktocultivateandmillsugarcane
inthenorthernMalaysianstateof
Perlis.Thecompanywentpublicin
1972andhassinceventuredintoother
industries,althoughitexitedthesugar
businessin2009.Today,itsmain
businessisthesupplyofflourto
downstreamfoodproducers.Its
subsidiary,FFM,isthelargestflour
millerinMalaysia.TheKuokfamily
retainscontrolofthecompanywitha
50.8percentshareholding.

Contents
1 History
1.1 Foundationand
sugarorigins
1.2 Expansionand
diversification
1.3 2000s
2 Business
2.1 Flourandfeed
milling
2.2 Filmexhibitionand
distribution
2.3 Environmental
engineering
2.4 Properties
2.5 Palmoil
3 References
4 Externallinks

PPBGroupBerhad

Type

Public

Tradedas

MYX:4065
(http://www.bursamalaysia.com/market/listed
companies/listofcompanies/plcprofile.html?
stock_code=4065)
FTSEBursaMalaysiaKLCIcomponent

Industry

Foodproduction
Agriculture
Wastemanagement
Filmdistribution
Propertyinvestment
Propertydevelopment

Founded

1968asPerlisPlantationsBerhad

Founder

RobertKuok

Headquarters UBNTower
JalanP.Ramlee,KualaLumpur,Malaysia
Keypeople

OhSiewNam (Chairman)
LimSoonHuat (ManagingDirector)

Products

FlourAnimalfeedConsumergoodsPackaged
food

Services

RetailrealestateResidentialpropertydevelopment
WastemanagementFilmdistributionCinema
operations

Revenue

RM 4.0billion(2015)[1]

Operating
income

RM 0.2billion(2015)[1]

Netincome

RM 1.1billion(2015)[1]

Totalassets

RM21.9billion(2015)[1]

Totalequity

RM20.6billion(2015)[1]

Parent

KuokBrothersSdnBhd(50.81%)[2]

Subsidiaries

FFMBerhad
GoldenScreenCinemasSdnBhd
ChemquestSdnBhd
PPBHartabinaSdnBhd

Website

www.ppbgroup.com(http://www.ppbgroup.com/)

4 Externallinks

History
Foundationandsugarorigins
RobertKuokandhisbrotherPhilipfoundedthecompanyKuokBrothersasaricewholesalerinMalaya
in1948.[3]Theyventuredintothesugarandflourmillingbusinessinthe1950sand60s.
In1952,KuokBrothersbeganacquiringsugarplantationsin1952andfoundedPerlisPlantations
Berhadin1968tohouseitssugarcanecultivationandmillingbusiness.[4]Thecompanyalsoestablished
MalaysianSugarManufacturingCompany(MSM),asugarrefiner,in1959.[3]Kuoksaidthechoiceto
switchfromthericetosugarbusinesswasduetotoughcompetitioninthericemarketinthe1950s.
HavinggonetoschoolintheEnglishmediumRafflesInstitutioninSingapore,healsohadanadvantage
inthesugarindustrysincethesugartradewasconductedinEnglish.[3]
KuokBrothersalsoestablishedFederalFlourMills(FFM)in1962,enteringtheflourmillingindustryto
takeadvantageofthegovernment'simportsubstitutioneconomicpolicy.[3]
Bytheendofthe1960s,throughPPB,MSManditssugarcommoditiestradingbusiness,KuokBrothers
wassaidtocontrolmorethan10percentoftheworld'ssugarsupplier,earningKuokthenickname"the
SugarKing."[3]

Expansionanddiversification
KuoktookPPBpublicin1972.ThelistingcoincidedwithKuokshiftingthefocusofhisbusiness
outsideMalaysia,especiallytoSingapore.[3]Subsequently,KuokBrothersbeganconsolidatingitscore
businessesintoPPB.PPBacquiredMSMin1976andaddedFFMtoitsfoldin1987.[3][4]
Inthe1980s,thecompanyexpandedintothepropertydevelopmentandpalmoilplantationindustries.
ItacquiredlocalpropertydeveloperTaiYanRealty(sincerenamedPPBHartabina)anda34percent
stakeinShawBrothersMalaysiabetween1982and1984.[4]Itsinvolvementinpropertiesalsoledtothe
companyventuringinretailbyoperatingseveralsupermarketsanddiscountstoresthroughoutMalaysia.
From1996to2000,itoperatedtheTopschainofsupermarketsinajointventurewithDutchretailer
Ahold,butexitedthebusinessduetocontinuinglosses.[3][5]ThepropertydivisionalsoincludedRasa
SayangBeachHotelsfrom1987until1999whenitwastransferredtotheShangriLaGroup.[3]
PPBenteredintoajointventurewithGoldenHarvest(International)LtdofHongKongtoestablish
GoldenScreenCinemas(GSC)totakeovertheShawcinemachainin1987.Thegroupsubsequently
boughtourGoldenHarvest'sstake.[4]GSChassincegrownintooneofMalaysia'slargestcinemachains
andfilmdistributors.[3]
In1986and1987respectively,PPBacquiredSaremasSdnBhd(inSarawak)and60percentofSapi
Plantations(inSabah)toestablishitselfinthepalmoilplantationbusiness.[4]Italsoacquireda70
percentinterestinIndonesianpalmoilproducerPTTidarSungkaiSawit(PTSS)in1995.[4]TheEast
MalaysianpalmoilbusinesseswereconsolidatedintoPPBOilPalmsBerhadin1997andwaslistedin

theKualaLumpurStockExchange.[4]PTSSwastransferredintoPPBOilPalmsin2000.[4]Inthe1990s,
thegroupacquiredamajorityholdinginChemquestSdnBhdinstagestoenterthewastemanagement
business.In2001,Chemquest,throughits25percentstakeinKonsortiumAbbasSdnBhd,wona30
yearconcessiontooperatetheSungaiSemenyihDamandWaterTreatmentPlant.[3]

2000s
In2007,thegroupdivesteditsstakeinPPBOilPalmstoWilmarInternationalinexchangeforWilmar
shares.Asaresult,itnowhasan18.3percentinterestinWilmar,makingitthesinglelargest
shareholder.[4]
PPBalsosoldMSMandothersugarrelatedbusinessestoFeldaGlobalVenturesin2009forRM1.25
billion.[6]

Business
Flourandfeedmilling
Flourandfeedmillingisthegroup'slargestsegmentbysales.[2]ThesegmentcomprisesFFMBerhad,
an80percentsubsidiaryofthegroup.FFMisthelargestflourmillerinMalaysiawithatotalmilling
capacityof2,550megatonnesperday.[7]FFMalsooperatesmillsinVietnam,ThailandandChina
throughassociatecompanies.[7]FFMisalsoasignificantplayerintheanimalfeedbusinessin
Malaysia.[8]

Filmexhibitionanddistribution
GoldenScreenCinemas(GSC),asubsidiaryofthegroup,isthelargestcinemachaininMalaysia.GSC
operatesin28locationsthroughoutMalaysia,mainlyinshoppingcentresunderthecineplexand
boutique/luxuryconcepts.[9]
GSCalsodistributesChinese,independentEnglishandforeignlanguagefilmstocinemas,television
channelsandhoteloperators.[10]

Environmentalengineering
Thegroup,throughissubsidiaryChemquest,provideswatertreatment,wastemanagementand
chemicalsmanufacturingsolutionsinMalaysia.[11]

Properties
Thegroup'spropertyinvestmentdivisionownsandmanagesCherasLeisureMallandCherasPlazain
Cheras,andNewWorldParkinPenang.
Itspropertydevelopmentsubsidiary,PPBHartabina,developsmainlyresidentialproperties.Thegroup
ispartofajointventurewithKhazanahNasionaldevelopingthePuteriHarbourmixedresidential,office
andretaildevelopmentintheIskandarMalaysiadevelopmentcorridorinsouthernJohor.[12]

Palmoil

PPBisan18percentshareholderinassociatecompanyWilmarInternational,anagribusinessgroup
basedinSingapore.Wilmarisoneofthelargestcultivatorsofpalmoilandthelargestpalmoiltraderin
theworld.[13]DuetoWilmar'ssize,itcontributestomorethanhalfofPPB'spretaxprofits(underthe
equitymethodofrecognisingitsshareofWilmar'sprofitsinitsownprofitorloss).[14]

References
1.Interimfinancialreportforthefourthquarter
ended31December2015,PPBGroupBerhad,31
December2015,retrieved28February2016
2.AnnualReport2014,PPBGroupBerhad,31
December2014,retrieved19August2015
3."PPBGroupBerhadHistory".FundingUniverse.
Retrieved9August2015.
4."Ourhistory".PPBGroupBerhad.Retrieved
9August2015.
5."AholdbecomesfullownerofTOPS
supermarketsinMalaysia".KoninkiljkeAhold
N.V.21December2000.Retrieved9August
2015.
6.Jayaseelan,Risen(4November2009)."The
mysteryofSugarKingKuokexitingsugar
businessinM'sia".TheStar.Retrieved9August
2015.
7."FlourMilling".PPBGroupBerhad.Retrieved
9August2015.
8."AnimalFeedMilling".PPBGroup.Retrieved

8."AnimalFeedMilling".PPBGroup.Retrieved
9August2015.
9.Begum,Mumtaj(26March2015)."Thebig
picture:WhatMalaysiancinemaoperatorshave
plannedformoviegoers".TheStar.Retrieved
9August2015.
10.FilmDistribution,PPBGroupBerhad,retrieved
9August2015
11.OurBusiness,ChemquestSdnBhd,retrieved
9August2015
12."PPBconfidentPuteriHarbourprojectwill
succeeddespitepropertyglutreports".TheStar.
29June2015.Retrieved9August2015.
13.Balch,Oliver(26January2015)."World'slargest
palmoiltradercommitstozerodeforestation".
TheGuardian.Retrieved9August2015.
14."HigherearningsforPPBGroup".TheStar.6
August2015.Retrieved9August2015.

Externallinks
Officialwebsite(http://www.ppbgroup.com//)
BusinessdataforPPBGroupBerhad:Reuters(http://www.reuters.com/finance/stocks/overview?
symbol=PEPT.KL)
Retrievedfrom"https://en.wikipedia.org/w/index.php?title=PPB_Group&oldid=707374358"
Categories: FoodcompaniesofMalaysia CompaniesbasedinKualaLumpur
Companiesestablishedin1968
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