World’s Largest Crude Palm Oil Producer Upbeat on Earnings Prospects
Felda Global Ventures Holdings Bhd (FGV), the world’s largest crude palm oil producer, and third largest oil palm plantation company, is upbeat on the prospects of generating higher revenues from downstream activities within the next one to two years. The company has announced it is currently exploring opportunities within the profitable ramen noodle, and palm-based cosmetics industries.
In its downstream operations, FGV produces soybean and canola products, and oleochemicals, and has interests in palm oil refineries and downstream processing facilities in Malaysia, Indonesia, China, Turkey, South Africa, and the U.S.
The company is currently in talks with a South Korean ramen noodle producer to partner on expanding its product line and capitalizing on halal noodle demand through production facilities in Malaysia and China. FGV is also considering expanding in the South Korean market through the biodiesel, beauty and personal care product, and dietary supplement sectors.
FGV’s Head of Palm Downstream Cluster, Datuk Zakaria, says that the company intends to expand its downstream footprint, particularly in China, India, and Southeast Asia as part of its long-term growth strategy, stating, “Currently, about 30% of revenue comes from the downstream division, and we intend to increase the contribution from the downstream industry to 40% of group revenue within the next one to two years.”