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PPB Group Berhad is a Malaysian diversified conglomerate which engages in
food production The food industry is a complex, global network of diverse businesses that supplies most of the food consumed by the world's population. The food industry today has become highly diversified, with manufacturing ranging from small, traditiona ...
,
agriculture Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people t ...
,
waste management Waste management or waste disposal includes the processes and actions required to manage waste from its inception to its final disposal. This includes the collection, transport, treatment and disposal of waste, together with monitorin ...
,
film distribution Film distribution (also known as Film exhibition or Film distribution and exhibition) is the process of making a movie available for viewing by an audience. This is normally the task of a professional film distributor, who would determine the marke ...
,
property investment Real estate investing involves the purchase, management and sale or rental of real estate for profit. Someone who actively or passively invests in real estate is called a real estate entrepreneur or a real estate investor. Some investors actively ...
and
development Development or developing may refer to: Arts *Development hell, when a project is stuck in development *Filmmaking, development phase, including finance and budgeting *Development (music), the process thematic material is reshaped * Photograph ...
. PPB is also the single largest shareholder, through an 18 percent stake, in
Wilmar International Wilmar International Limited (); is a Singaporean food processing and investment holding company with more than 300 subsidiary companies. Founded in 1991, it is one of Asia's leading agribusiness groups alongside the COFCO Group. It ranks amongs ...
, one of the leading palm oil producers and agribusiness companies in the world. The company was founded in 1968 as Perlis Plantations Berhad (from which it derives its current name) by
Robert Kuok Robert Kuok Hock Nien (; Hokchew: ''Guoh24 Houk5 Nieng55''; born 6 October 1923), is a Malaysian business magnate and investor. Since 1973, Kuok has lived in Hong Kong. According to ''Forbes'', his net worth is estimated at $12.6 billion as of ...
to cultivate and
mill Mill may refer to: Science and technology * * Mill (grinding) * Milling (machining) * Millwork * Textile mill * Steel mill, a factory for the manufacture of steel * List of types of mill * Mill, the arithmetic unit of the Analytical Engine early ...
sugar cane Sugarcane or sugar cane is a species of (often hybrid) tall, perennial grass (in the genus '' Saccharum'', tribe Andropogoneae) that is used for sugar production. The plants are 2–6 m (6–20 ft) tall with stout, jointed, fibrous stalk ...
in the northern Malaysian state of
Perlis Perlis, ( Northern Malay: ''Peghelih''), also known by its honorific title Perlis Indera Kayangan, is the smallest state in Malaysia by area and population. Located on the northwest coast of Peninsular Malaysia, it borders the Thai provinces ...
. The company went public in 1972 and has since ventured into other industries, although it exited the sugar business in 2009. Today, its main business is the supply of flour to downstream food producers. Its subsidiary, FFM, is the largest flour miller in Malaysia. The Kuok family retains control of the company with a 50.8 percent shareholding.


History


Foundation and sugar origins

Robert Kuok Robert Kuok Hock Nien (; Hokchew: ''Guoh24 Houk5 Nieng55''; born 6 October 1923), is a Malaysian business magnate and investor. Since 1973, Kuok has lived in Hong Kong. According to ''Forbes'', his net worth is estimated at $12.6 billion as of ...
and his brother Philip founded the company Kuok Brothers as a rice wholesaler in Malaya in 1948. They ventured into the sugar and flour milling business in the 1950s and 60s. In 1952, Kuok Brothers began acquiring sugar plantations in 1952 and founded Perlis Plantations Berhad in 1968 to house its
sugar cane Sugarcane or sugar cane is a species of (often hybrid) tall, perennial grass (in the genus '' Saccharum'', tribe Andropogoneae) that is used for sugar production. The plants are 2–6 m (6–20 ft) tall with stout, jointed, fibrous stalk ...
cultivation and milling business. The company also established Malaysian Sugar Manufacturing Company (MSM), a sugar refiner, in 1959. Kuok said the choice to switch from the rice to sugar business was due to tough competition in the rice market in the 1950s. Having gone to school in the English-medium
Raffles Institution Raffles Institution (RI) is an independent educational institution in Singapore. Founded in 1823, it is the oldest school in the country. It provides secondary education for boys only from Year 1 to Year 4, and pre-university education for both ...
in Singapore, he also had an advantage in the sugar industry since the sugar trade was conducted in English. Kuok Brothers also established Federal Flour Mills (FFM) in 1962, entering the flour milling industry to take advantage of the government's import-substitution economic policy. By the end of the 1960s, through PPB, MSM and its sugar commodities trading business, Kuok Brothers was said to control more than 10 percent of the world's sugar supplier, earning Kuok the nickname "the Sugar King."


Expansion and diversification

Kuok took PPB public in 1972. The listing coincided with Kuok shifting the focus of his business outside Malaysia, especially to Singapore. Subsequently, Kuok Brothers began consolidating its core businesses into PPB. PPB acquired MSM in 1976 and added FFM to its fold in 1987. In the 1980s, the company expanded into the property development and palm oil plantation industries. It acquired local property developer Tai Yan Realty (since renamed PPB Hartabina) and a 34 percent stake in Shaw Brothers Malaysia between 1982 and 1984. Its involvement in properties also led to the company venturing in retail by operating several supermarkets and
discount store A discount store or discounter offers a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on bulk purchasing and efficient distribution to keep down cost ...
s throughout Malaysia. From 1996 to 2000, it operated the Tops chain of supermarkets in a joint venture with Dutch retailer
Ahold Koninklijke Ahold N.V. was a Dutch multinational retail company based in Zaandam, Netherlands. It merged with Belgium-based Delhaize Group in 2016 to form Ahold Delhaize. History Growth in the Netherlands The company started in 1887, when A ...
, but exited the business due to continuing losses. The property division also included Rasa Sayang Beach Hotels from 1987 until 1999 when it was transferred to the Shangri-La Group. PPB entered into a joint venture with Golden Harvest (International) Ltd of Hong Kong to establish
Golden Screen Cinemas Golden Screen Cinemas Sdn Bhd (GSC) is Malaysia's largest cinema exhibitor and a wholly-owned subsidiary of PPB Group Berhad (a member of the Kuok Group), which is an exhibitor and distributor of movies and content in Malaysia. It operates over ...
(GSC) to take over the Shaw cinema chain in 1987. The group subsequently bought out Golden Harvest's stake. GSC has since grown into one of Malaysia's largest cinema chains and film distributors. In 1986 and 1987 respectively, PPB acquired Saremas Sdn Bhd (in Sarawak) and 60 percent of Sapi Plantations (in Sabah) to establish itself in the palm oil plantation business. It also acquired a 70 percent interest in Indonesian palm oil producer PT Tidar Sungkai Sawit (PTSS) in 1995. The East Malaysian palm oil businesses were consolidated into PPB Oil Palms Berhad in 1997 and was listed in the Kuala Lumpur Stock Exchange. PTSS was transferred into PPB Oil Palms in 2000. In the 1990s, the group acquired a majority holding in Chemquest Sdn Bhd in stages to enter the
waste management Waste management or waste disposal includes the processes and actions required to manage waste from its inception to its final disposal. This includes the collection, transport, treatment and disposal of waste, together with monitorin ...
business. In 2001, Chemquest, through its 25 percent stake in Konsortium Abbas Sdn Bhd, won a 30-year concession to operate the Sungai Semenyih Dam and Water Treatment Plant.


2000s

In 2007, the group divested its stake in PPB Oil Palms to
Wilmar International Wilmar International Limited (); is a Singaporean food processing and investment holding company with more than 300 subsidiary companies. Founded in 1991, it is one of Asia's leading agribusiness groups alongside the COFCO Group. It ranks amongs ...
in exchange for Wilmar shares. As a result, it now has an 18.3 percent interest in Wilmar, making it the single largest shareholder. PPB also sold MSM and other sugar-related businesses to Felda Global Ventures in 2009 for RM1.25 billion.


Business


Flour and feed milling

Flour and feed milling is the group's largest segment by sales. The segment comprises FFM Berhad, an 80 percent subsidiary of the group. FFM is the largest flour miller in Malaysia with a total milling capacity of 2,550
megatonnes The tonne ( or ; symbol: t) is a unit of mass equal to 1000  kilograms. It is a non-SI unit accepted for use with SI. It is also referred to as a metric ton to distinguish it from the non-metric units of the short ton ( United State ...
per day. FFM also operates mills in
Vietnam Vietnam or Viet Nam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,., group="n" is a country in Southeast Asia, at the eastern edge of mainland Southeast Asia, with an area of and population of 96 million, making i ...
,
Thailand Thailand ( ), historically known as Siam () and officially the Kingdom of Thailand, is a country in Southeast Asia, located at the centre of the Indochinese Peninsula, spanning , with a population of almost 70 million. The country is b ...
and China through associate companies. FFM is also a significant player in the animal feed business in Malaysia.


Film exhibition and distribution

Golden Screen Cinemas Golden Screen Cinemas Sdn Bhd (GSC) is Malaysia's largest cinema exhibitor and a wholly-owned subsidiary of PPB Group Berhad (a member of the Kuok Group), which is an exhibitor and distributor of movies and content in Malaysia. It operates over ...
(GSC), a subsidiary of the group, is the largest cinema chain in Malaysia. GSC operates in 37 locations throughout Malaysia, mainly in shopping centres under the cineplex and boutique/luxury concepts. GSC also distributes Chinese, independent English and foreign language films to cinemas, television channels and hotel operators.


Environmental engineering

The group, through is subsidiary Chemquest, provides
water treatment Water treatment is any process that improves the quality of water to make it appropriate for a specific end-use. The end use may be drinking, industrial water supply, irrigation, river flow maintenance, water recreation or many other uses, inc ...
,
waste management Waste management or waste disposal includes the processes and actions required to manage waste from its inception to its final disposal. This includes the collection, transport, treatment and disposal of waste, together with monitorin ...
and chemicals manufacturing solutions in Malaysia.


Properties

The group's
property investment Real estate investing involves the purchase, management and sale or rental of real estate for profit. Someone who actively or passively invests in real estate is called a real estate entrepreneur or a real estate investor. Some investors actively ...
division owns and manages Cheras Leisure Mall and Cheras Plaza in Cheras, and New World Park in Penang. Its property development subsidiary, PPB Hartabina, develops mainly residential properties. The group is part of a joint venture with Khazanah Nasional developing the Puteri Harbour mixed residential, office and retail development in the
Iskandar Malaysia Iskandar Malaysia, formerly known as Iskandar Development Region (IDR; ms, Wilayah Pembangunan Iskandar) and South Johor Economic Region (SJER), is the main southern development corridor in Johor, Malaysia. It was established on 8 November 20 ...
development corridor in southern
Johor Johor (; ), also spelled as Johore, is a state of Malaysia in the south of the Malay Peninsula. Johor has land borders with the Malaysian states of Pahang to the north and Malacca and Negeri Sembilan to the northwest. Johor shares maritime ...
.


Palm oil

PPB is an 18 percent shareholder in associate company
Wilmar International Wilmar International Limited (); is a Singaporean food processing and investment holding company with more than 300 subsidiary companies. Founded in 1991, it is one of Asia's leading agribusiness groups alongside the COFCO Group. It ranks amongs ...
, an agribusiness group based in Singapore. Wilmar is one of the largest cultivators of palm oil and the largest palm oil trader in the world. Due to Wilmar's size, it contributes to more than half of PPB's pre-tax profits (under the equity method of recognising its share of Wilmar's profits in its own profit or loss).


References


External links

* {{FTSE Bursa Malaysia KLCI constituents 1968 establishments in Malaysia Food and drink companies of Malaysia Companies based in Kuala Lumpur Conglomerate companies established in 1968 Companies listed on Bursa Malaysia Conglomerate companies of Malaysia Food and drink companies established in 1968 Malaysian companies established in 1968