DOWNSTREAM

In line with Goodhope's commitment to maximizing value creation over the long term, the Group is extending its business activities along the downstream value chain to take advantage of growth opportunities.

 

This integration will:

 

  • mitigate the risks of being an upstream commodity player and ensure price stability.

 

  • create secure outlets for our products from upstream.

 

  • enhance our competitiveness in the edible oils and fats industry.

 

As the volume of CPO increases in line with the Group's expansion plans, there is a growing need to secure access over its refining, storage and distribution, in order to protect value creation and ensure sustainability of operations.

 

Goodhope has acquired a 100% stake in three companies, Premium Vegetable Oils Sdn Bhd and Premium Fats Sdn Bhd in Malaysia, and Arani Agro Oil Industries Limited in India which were a part of the Premium Nutrients Berhard (PNB) Group in July 2011. With this acquisition, Goodhope has also secured all intellectual property rights including the Premiun Nutrients brand name.

 

These downstream specialist companies will enable Goodhope to immediately gain access to refinery and specialty refining capacities totaling approximately 1,500 MT per day.

 

These new companies are now owned by Premium Nutrients (Pvt) Ltd, a Singapore based fully owned subsidiary of Goodhope Asia Holdings Ltd.

 

Future plans:
With this acquisition, Goodhope is in a position to further integrate down the value chain into specialty fats and oils together with their respective distribution and marketing operations. This will add an extra dimension to the Group's operations, create greater synergy with the upstream operations, and ensure our offering evolves from a commodity product into a range of value added products that will serve a wider range of customers.

 

Parallel to this, we will also concentrate on building our research and development capabilities in the advanced specialty, soft oils and other edible oils segments in order to increase the product range offered to customers. We will also build consumer brands and expand our market reach to enable us to realize our vision of becoming a globally recognized player in the food industry.

 

The downstream segment business structure is shown below: