MARKET DEVELOPMENT
FGV To Re-Strategise, Unlock Value Of Non-Core Businesses
FGV To Re-Strategise, Unlock Value Of Non-Core Businesses
05/04/2014 (Bernama) - Felda Global Ventures Holdings Bhd, one of Malaysia's largest and most diversified agro-based companies, is looking into re-strategising its non-core businesses and unlock their value.
Its President and Chief Executive Officer Mohd Emir Mavani Abdullah said the exercise would enable its non-core businesses to operate independently as strategic business units by year-end.
Besides agri-business, the group is also involved in property, information and technology, engineering and logistics.
"We are not investing a lot on non-core businesses as said by some, but we are very focused on our agri-business especially on three crops namely oil palm, sugar and rubber both upstream and downstream, and not going beyond that globally," he said.
Mohd Emir was speaking to reporters at a familiarisation trip here.
The non-core businesses will be allowed to grow by themselves as stand-alone entities, and when the time is right they would be divested, said Mohd Emir.
Moving forward, the group is also pursuing an aggressive, strategic reform and expansion programme.
"This year will also be the year of productivity and efficiency improvement for the group, with 136 internal initiatives to reduce costs for upstream as well as downstream operations.
"Every senior manager in FGV has clear score cards on how to improve productivity from the entire value chain. The group can either grow by land bank expansion or cost reduction," said Mohd Emir.
He added that FGV also aspires to be among the top 10 diversified and integrated agri-businesses globally by 2022, by inculcating a performance-driven culture.
Its President and Chief Executive Officer Mohd Emir Mavani Abdullah said the exercise would enable its non-core businesses to operate independently as strategic business units by year-end.
Besides agri-business, the group is also involved in property, information and technology, engineering and logistics.
"We are not investing a lot on non-core businesses as said by some, but we are very focused on our agri-business especially on three crops namely oil palm, sugar and rubber both upstream and downstream, and not going beyond that globally," he said.
Mohd Emir was speaking to reporters at a familiarisation trip here.
The non-core businesses will be allowed to grow by themselves as stand-alone entities, and when the time is right they would be divested, said Mohd Emir.
Moving forward, the group is also pursuing an aggressive, strategic reform and expansion programme.
"This year will also be the year of productivity and efficiency improvement for the group, with 136 internal initiatives to reduce costs for upstream as well as downstream operations.
"Every senior manager in FGV has clear score cards on how to improve productivity from the entire value chain. The group can either grow by land bank expansion or cost reduction," said Mohd Emir.
He added that FGV also aspires to be among the top 10 diversified and integrated agri-businesses globally by 2022, by inculcating a performance-driven culture.