Kulim (Malaysia) Berhad (“Kulim”) traces its history back to 1933 when Kulim Rubber Plantations Ltd was incorporated in United Kingdom. Kulim was later incorporated as a public limited company and was listed on Main Board of the Kuala Lumpur Stock Exchange (now known as the Main Market of Bursa Malaysia Securities Berhad) in 1975. In 1976, Johor Corporation became the major shareholder of Kulim.
Over the years, Kulim has grown to become a diversified plantation company and continues to strengthen its position by securing new hectarages while developing and strengthening its intrapreneur ventures. At the end of 2013, Kulim once again made its way into Indonesia with acquisition of 74% equity in PT Wisesa Inspirasi Nusantara, a plantation holding company in Indonesia, holding rights over 40,645 hectares of potential oil palm land in Central Kalimantan. With the completion of this strategic acquisition, as at the time of writing, the Kulim Group’s direct and indirect landholding stands at over 91,000 hectares (excluding NBPOL which was held for sale as at 31 December 2014), spread across Malaysia and Indonesia.
After having footholds in O&G related businesses in Malaysia, Kulim had on 10 December 2014, entered into a Conditional Subscription and Shares Purchase Agreement with the existing shareholders of PT Citra Sarana Energi (“PT CSE”) for acquisition of 60% equity interest in the Company. This will enable Kulim to expand its involvement in the O&G sector particularly in Indonesia, moving up the value chain into the upstream activities - exploration and production
Kulim is recognised as one of the leading palm oil groups with operations currently spanning over Malaysia and Indonesia. Kulim was amongst the earliest palm oil producers to be certified to the Roundtable on Sustainable Palm Oil (“RSPO”) standard. Our management and growth strategy is fundamentally guided by Vision “30:30”, which aims to raise fruit yields to 30 tonnes per hectare and palm product extraction rates to 30%, balanced with sustainable development principles.
Established as one of Kulim’s principal growth thrust, Intrapreneur Ventures (“IV”) Division is involved in a diverse range of businesses including shipping and logistics, support operations for plantations, including agricultural machinery, oil palm nursery and mills maintenance, support operations for Oil and Gas (“O&G”) sector as well as IT-related services. These companies will be developed and nurtured, with the aim to subsequently transform into strategic business division of the Group. With Kulim’s foray into the O&G upstream activities in Indonesia, O&G support services, namely E.A. Technique (M) Berhad and Danamin (M) Sdn Bhd, will be reclassified under the Group’s new O&G business segment effective 1 January 2015.
Oil And Gas
Driven by its Balance Business Strategy, Kulim is uncovering opportunities in a new business dimension - O&G sector in the quest to business growth and value deliverance to its shareholders.
Having footholds in O&G related businesses such as transportation of clean petroleum products and fabrication of O&G pipelines, Kulim aims at moving up the O&G value chain to expand into upstream O&G activities involving exploration, development and production, particularly in Indonesia as new space being created. This is to enable Kulim to tap into strategic investment opportunities to broaden our earnings base and generate sustainable growth.
Our business portfolio is a progressive development from our traditional business of palm oil, pursued in line with our aim to sustain value creation for all our stakeholders via the adoption of an evolving and balanced business mix.
While plantation and agriculture will dominate our business profile, we will continue to explore, identify and invest in businesses that offer superior long-term potential for growth and profitability, with the aim to minimise earning fluctuations so as to enable the Group to provide attractive returns to our shareholders. Kulim is confident in carving a new growth path with its experience and proven ability to develop businesses, including those outside its traditional palm oil business, including O&G ventures which is being pursued currently.
Our pursuit of value and growth is firmly underpinned by our commitment to embrace sustainability and strong corporate governance as the overriding philosophy.
As a socially and environmentally responsible corporate citizen, Kulim embraces the principles of sustainable development and has continued to work towards demonstrating sustainability throughout our operations.
We recognise sustainability as an opportunity to change the way we do our business. Our Sustainable Palm Oil (“SPO”) programme defines its ultimate objective as to improve Kulim’s business performance and profitability as well as positioning Kulim as a world leader in SPO. Our efforts with regards to sustainable development will continue to guide our business.
We hope that by being mindful of our surroundings and the socioeconomic impact of our actions, we will move forward by developing business methods that are economically viable, environmentally appropriate and socially beneficial.