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Company Background and Goals

One of the pioneers of sugar industry in the Northeast of Thailand, Khun Vichien Tangtongwechakit initiated cane growing practices and encouraged farmers to grow cane in Buriram Province. Since then, our journey has started. In 1964, sahathairungruang Sugar Co., Ltd. was established, with 2 million Baht registered capital, to produce raw sugar. The crushing capacity at that time was merely 3,000 Tons Cane per Day (TCD).

In 1986, the name was changed to Buriram Sugar Co., Ltd. Crushing capacity has steadily increased from 3,000 TCD to the current 17,000 TCD, the factory nowadays has capacity to crush around 2 million tons of cane per season.

Our products – white sugar and raw sugar – are sold domestically and overseas under “Double Key” trademark. We were awarded ISO 9001: 2008 certificate in 2001 for quality management. In 2011, our sugar was awarded GMP and HACCP certificates for our good quality sugar. The awards are mean to ensure customers for our quality products.

Buriram Sugar Plc has continuously generated incomes for over 10,000 cane growers’ families and consequently has lifted their living conditions.

Apart from sugar production, Buriram Sugar Plc has also invested in other related businesses – bagasse-based co-generation, sugarcane research and development and organic fertilizer.

Our subsidiary companies are

  1. Buriram Sugar Factory Co., Ltd.
  2. Buriram Sugarcane Research and Development Co., Ltd.
  3. Buriram Energy Co., Ltd.
  4. Buriram Power Co., Ltd.
  5. Buriram Power Plus Co., Ltd.
  6. Key Brand Fertilizer Co., Ltd.

Business Goal

BSG set short-term and long-term business goals including the sustainable business goal according to the vision and mission as planned.

Short-term Goal

Create the Sufficiency of Crop Yield and Life Quality of Sugarcane Farmers

BSG set the goal to develop sugarcane crop yield in the next 2-3 crop years by supporting the sugarcane farming and expanding the plantation to approximately 250,000 Rai in order to increase the crop yield to 3 Million tons including maintaining the standard quality of sugarcane to gain the highest yielding crops per Rai.

In the crop year of 2015/16, the amount of cane crushing is amount of 2.06 Million tons and in the crop year of 2016/17 (December 2016 – April 2017), the amount of cane crushing is approximately 2.4 Million tons. In addition to the sugarcane planting support for the crop year of 2017/18 which is currently planting, the projection of crop yield is approximately 3 Million tons as planned. The sugarcane plantation is presently 189,382 Rai approximately with 11,587 contract farming. Commercial Cane Sugar or C.C.S. is 13.45% which is ranked in top 5 of Thailand with 113.89 kilograms per tons of sugar yield.

Investment Expansion, Value Addition to Products and Byproducts Business Development in Renewable Energy.

BSG has planned to invest in the business of refined sugar manufacturer and distributor to create value-added products and support the increasing amount of sugar production by focusing on export sales for international industry which have completely studied and analyzed the sugar market situation as well as the suitable and up-to-dated technologies in order to produce the quality sugar for consumers.

In term of the business of biomass power plant, the Company planned to complete the construction of the third biomass power plant in the period of the third quarter of 2016 which is now completed. The operation was initiated on December 2016 to sell the electricity to BSF in order to support its increasing production capacity. However, if Provincial Electricity Authority (PEA) opens the negotiation for power purchase agreement, the Company will discuss with PEA about this matter accordingly.

Furthermore, the Company proposed to the shareholders’ meeting to set up the Power Plant Infrastructure Fund (“the fund”) which was approved from the shareholders. The fund is currently in the consideration for approval process of Securities and Exchange Commission of Thailand (SEC). However, if the fund is approved by SEC, the Company will expand the investment and develop the business continuously for the growth of the Company and its subsidiaries.

Long-term Goal

The Company aims to maintain the standard and the leading of management and quality control of sugarcane to produce sugar and byproducts in maximum efficiency since the Company deeply understands that the raw material is the most major risk of the businesses therefore if it is well-managed and controlled to generate the stability as well as develop the system and business tools continuously, the Company will be able to conduct business securely.

According to the business of sugar manufacturing factory, the Company has planned to expand the investment in the future to establish additional 2 sugar manufacturing plants with 20,000 tons of production capacity per plant in compliance with the license of factory establishment authorized by the Office of Cane and Sugar Cane Board. Currently, the Company has established Chamni Sugar Factory Company Limited (“CSF”) and Buriram Sugar Capital Company Limited (“BSC”) to support the business operation as mentioned.

Regarding to Biomass power plant, the Company aims to develop the business, coupled with the ongoing expansion of the sugar business. The plan is to increase the electricity capacity of biomass power plant to accommodate the capacity of the various production process of BSG in the future.

Furthermore, the Company has considered developing for further business of industrial byproducts to increase revenue and create the business sustainability by conducting the feasibility study of ethanol and other products which can create value addition to agricultural byproducts of BSG.

Sustainable Goal

In order to create the sustainability of business growth and development, the potential and capability to profitability is required; however, it is not the only factor that can completely create the business sustainability. The good governance and ethics, the responsibility for stakeholders, self-learning and development as well as the creative minds to develop the new innovations are also needed for sustainable business operation. As the results, BSG commits to develop these 5 sectors as follows:

1. Human Resource Development

Employees are very important human resources for the business development therefore BSG pays attention to every step in human resource management especially the recruitment in order to put the right man in the right job regarding to the process of recruitment from internal and external organization to find the applicants whom the qualifications are matching with the positions including follow the working results to evaluate work performance in accordance with the standards as specified. Furthermore, the Company also regulates the employees to comply with the regulations of the Company and the “Code of Conduct and Code of Ethics” in order to recognize the priority on stakeholders as well as generate self-awareness on the social responsibility by participating the relevant activities.

Additionally, BSG has set “The Policy of Human Resource Development”, written and collected in a part of “Good Governance and Code of Conduct Handbook” which will be effective in 2017. (According to the Board of Directors’ Meeting No.2/2017 of BRR on February 23, 2017, the resolution was to unanimously approve “The Handbook of Good Governance and Code of Conduct”

2. Sugarcane Farmers Development

According to vision and missions of BSG which commits to generate the sufficiency of crop yield and life quality for farmer regarding to the business philosophy: “Sugar Made in the Field”, BSG aims to support and develop the skills of sugarcane farmers in term of the academic and practical knowledge management of sugarcanes farming, from the plating process, crop cares to crop harvesting, including the knowledge to apply the up-to-dated technologies for sugarcane farming management. Furthermore, the Company organized the domestic and international company visit for sugarcane farmers in order to integrate the knowledge for further business and apply it for real work practices. The sugarcane farmers development is considered as the sustainable development which can increase the quality and crop yield per Rai for farmers and also minimize the risk from insufficiency of raw materials as well as generate the certain sufficiency of crop yield for BSG.

Additionally, BSG has initiated the concept of “Sugarcane Agriculturist Businessmen” for the purpose of inspiring and educating every farmer to plan and manage the sugarcane farming and other relevant processes appropriately with the practical and theoretical knowledge support from BSG closely in order to create the stability for the career of sugarcane farmers which provide the well returns and happiness including pass on experiences as well as inherit the business from generation to generation.

3. Research, Innovation and Technology Development

Throughout the period of business operation, BSG prioritizes the development of research, innovation and modern technology to develop, improve and strengthen the potentiality for BSG and sugarcane farmers. BSG has applied Online Farming Management System, Online Smart Farm System, Management Information System (MIS) and Geographic Information System (GIS) including other technology to support sugarcane planting in order to follow the individual sugarcane fields according to the academic principles and solve the problems real time. Furthermore, BSG has conducted the researches to prevent and eliminate the plant diseases and pests, for example, the outbreak control of plant diseases and insect infestation by using the method of biological control which is the culture of natural enemies such as parasitic wasps in order to control the outbreak of Sugarcane Borer and Greenmuscardine Fungus as well as eliminate Stem Boring Grub.

Nevertheless, BSG keeps on developing business performance in order to enhance standard of the agricultural management on research, innovation and technology in accordance with Thailand 4.0 Policy of the government which focus on the economy powered by innovations.

4. Community and Environmental Development

BSG believes that the business development has to be collaborated with the development of community and environmental protection at the same time.

Community Development BSG set the important mission to enhance the life quality of people in the community through the knowledge management and the career support therefore BSG had organized the sightseeing to develop and create the value-added products including advertise and purchase the local products to make as the souvenirs for special occasions so that the local people can earn a living and be proud of themselves. Moreover, BSG has developed and supported the education for children and the schools which are located in the surrounding area of BSG as well.

Environmental Development BSG cares and protects the environment, starting from the internal management of factory which is namely production process and landscaping around the plant. Additionally, the activities about environmental protection had been conducted with the great participation of local people, governmental agencies and employees of BSG in order to generate the unity and create the public consciousness on local environmental protection.

5. The Application of Good Governance and Business Ethics in Business Management and Development

The commitment in organization sustainably development with good governance and business ethics is one of important issues BSG has prioritized and developed constantly.

BSG has operated the business in accordance with the transparency which is disclosure the information pursuant to the appropriate regulations as required to generate the fairness as well as the equality among shareholders. Furthermore, the internal audit system proceeded by independent internal and external audits was conducted to generate the accuracy and transparency in the business operation.

In 2016, Buriram Sugar Pubilc Company Limited committed to join the project of Thailand’s Private Sector Collective Action Against Corruption (CAC) therefore the Company set up the anti-corruption policies and also organized the training for employees to gain more understanding, self-awareness and appropriate practices concerning to this matter. Additionally, BSG had reviewed the “Good Governance Policy” and “Code of Conduct and Code of Ethics for executives and employees of the Company” and set up other policies concerning to governance and ethics principles which was written and collected in “Good Governance and Code of Conduct Handbook” which will be effective in 2017. (According to the Board of Directors’ Meeting No.2/2017 of BRR on February 23, 2017, the resolution was to unanimous approve “Good Governance and Code of Conduct Handbook)