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  • F&N PJ Land Conversion Approved
  • Somsak (left) and Soon at the press conference.

    KUALA LUMPUR: Fraser and Neave Holdings Bhd’s (F&N) RM1.77bil integrated project at Section 13, Petaling Jaya is on track.

    According to chief financial officer Soon Wing Chong, the company has obtained the approval for the land conversion and extension of the land lease besides getting its master plan ready.

    He said the Petaling Jaya City Council had approved the land conversion from industrial land to commercial land while the land lease was extended from 46 years to 99 years.

    “We are waiting to pay the premium and the detailed building plan is under way,” he said after its AGM yesterday.

    He said the project would run for five to six years with the company only able to recognise revenue and profit contribution from the project in two to three years after its launch.

    Chief executive officer Somsak Chayapong said the company’s target to launch the residential portion in the last quarter of 2014 should be on track barring unforeseen circumstances such as changes in policies by the authorities.

    The project, a joint venture with Singapore-based FCL Centrepoint Pte Ltd, consists of five phases comprising 900 serviced apartments on top of the shopping mall, small office home office, corporate office and hotel components.

    As for its bread-and-butter fast-moving consumer goods segment, Somsak said it would focus on expanding in its existing markets but did not foresee significant capacity expansion over the next few years.

     

    It would intensify its marketing activities and allocate 5% to 10% of its revenue for advertising and promotional expenses.

    It has invested RM370mil in its Pulau Indah dairy plant, which began production in 2012.

    On top of major markets Malaysia and Thailand, he said the firm would focus on growing its footprint in Vietnam, Laos, Cambodia and Myanmar as well.

    Leveraging on its halal hub status in Pulau Indah, it aims to double its export in five years. It is exporting to more than 40 countries presently. Currently, its exports are 15% to 20% of its total production.

    Somsak also said its sales in Thailand were not impacted by the political unrest there.

    “In fact, we are selling better there as people still have to eat and drink when they protest,” he said.

    Prior to the Bangkok shutdown, its unit there had sent sufficient upply to the city centre to ensure that the supply chain was not disrupted, he added.

    Last year, Dairies Thailand contributed 31% to the group’s overall revenue, Dairies Malaysia accounted for 28% and soft drinks the remaining 41%.

    Back in Malaysia, Soon said sales for the Chinese New Year period were within expectation thus far.

    Some of the beverage brands of F&N include 100 Plus, Seasons, MyCola and F&N Fun Flavours.

     

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