Emir says FGV’s new organisational structure is lean yet scalable."

15/07/2014 (The Star) - The world’s largest palm oil producer Felda Global Ventures Holdings Bhd (FGV) aims to grow its revenue to RM100bil in six years to become one of the Top 10 global agribusiness companies.

Group president and chief executive officer Mohd Emir Mavani Abdullah said FGV remained focused on its global strategic blueprint’s 2020 aspiration to achieve these targets.

He said its new organisational structure was lean yet scalable, and guarded by a robust governance and integrity framework tailored for future global growth.

“This transformation journey will be very rewarding for all of us because there is support from a dedicated, forward-looking and ambitious management team coupled with the implementation of group-wide transformation initiatives,” he said in a statement yesterday.

He added that these initiatives were structured to increase its revenue eight-fold in six years.

FGV has now been restructured into six clusters: oil palm upstream, oil palm downstream, sugar, rubber, research and development, as well as TLMO (transport, logistics, marketing and others).

Each cluster has its own strategic initiatives to achieve its targets by 2020, with the oil palm upstream cluster aiming to retain its global leadership in plantations by being the largest crude palm oil producer and holding the largest land bank.

Its downstream cluster aims to capture higher margins and high-growth products in the speciality ingredients segment to become amongst the world’s Top Three players in industrial fats, and achieve regional heavyweight status in palm-based consumer goods.

Its sugar cluster aims to be one of the top global companies in the refined sugar business with a production volume of four million tonnes by 2020, while the newly-formed rubber cluster is focusing on becoming a leading integrated rubber player commanding the third-highest global sales in processed rubber.

“Across the group, there is a strong belief that this transformation journey will lead to success and we are confident of achieving our goals,” he said.