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).
capacity to crush
tons of cane per day
capacity to crush around
tons of cane per season
In 1986, the name was changed to Buriram Sugar Co., Ltd. Crushing capacity has steadily increased from 3,000 TCD to the current 24,000 TCD, the factory nowadays has capacity to crush around 3 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.
BSG has set short-term and long-term business goals including the sustainable business goal according to the vision and mission as planned.
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 was 2.06 million tons. In the crop year of 2016/17, the amount of cane crushing increased by 2.20 million tons, and expectedly by 2.90 million tons in 2017/18. For sugarcane plantation areas presently (crop year 2017/18), such area is totally measured at 239,523 rai, an increase of 54,410 rai compared with the crop year 2016/17 (the crop year 2016/17 had the plantation area by 185,112 rai). In 2017/18, there were contracted sugarcane farmers 11,780 farmers, increased from the previous year where there was 11,023 farmers. In addition, the Commercial Cane Sugar (“C.C.S.”) in 2015/16 was 13.45% which was ranked in top 5 of Thailand. However, the C.C.S. was dropped in 2016/17 due to the drought crisis. In 2017/18, the C.C.S. projection is approximately 13.50%, and the sugar production is expected at 120.00 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 the sugar factory 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 which was approved from the shareholders on September 2016. There was a resolution to set up the Buriram Sugar Group Power Plant Infrastructure Fund (BRRGIF) by the Securities and Exchange Commission on August 1, 2017, and offering of investment units totaling of 350 Million Units with the last offering price and par value per unit by 10. 30 Baht. The amount of first offering of investment units was equivalent to 3,605 Million Bath, and such infrastructure fund trading in the Stock Exchange of Thailand was firstly operated on August 7, 2017. Such investment is used for the expansion of power plant business, refined sugar project and bagasse packaging project which are in the process of education and research, as well as other projects of the company and its subsidiaries for the sustainable business growth.
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 by-products to increase revenue and create the business sustainability by conducting the feasibility study of ethanol, bagasse packaging and other products which can create value addition to agricultural byproducts of BSG.
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:
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 selfawareness 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" the major details are as follows:
The Policy of Human Resource Development
BSG provides the process to support the development of knowledge, skills and capabilities for directors, executives and employees as needed in work both in the present and in the future since BSG realizes that human resources are the most valuable assets in business operation therefore the concept of human resource development is suitable for long-term investment. BSG has developed human resources according to the policies and current situations with the knowledge and skills development and job features needed for employees through using the tools of human resources development which are coaching, knowledge sharing and project assignment in order to direct the employees to apply the knowledge in work and strengthen the organization as well as support the business growth accordingly.
BSG commits to developing and arranging the human resources development for the group of key persons through the method of consideration and selection the qualified employees who expertise in responsible tasks with the good personality and mindful behaviors including the good attitudes at work as well as the organization. The department of Human Resources and Administration has cooperated with original departments to conduct the Individual Development Plan ( IDP) with the variety of learning concepts, for example, coaching, knowledge sharing, project assignment and internal and external training to acknowledge the precise data of human resource development through conducting the individual evaluation assessed by supervisors and/or the related persons and also following the performance results with supervisors 2 times/year
BSG prioritizes the development and preparation of human resources in order to support the business expansion therefore Individual Development Plan (IDP) and High Potential Development is determined through the selection of key persons in each department. The selected employees will have opportunities for learning and self-potential development, for example, learning work from different department in the organization Rotation, etc. Furthermore, BSG supports the stage to show the abilities for employees as well by assigning the challenging projects such as innovation development to respond the business operation and productions to society. The chosen projects will be supported by BSG to apply the innovations created by employees in the real work practices in order to generate the benefits for the organization indeed.
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 has 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 farmer 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.
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 green muscardine 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 empowered by the innovation.
Community and Environmental Development
BSG believes that the business development has to be collaborated with the development of community and environmental conservation at the same time.
Community Development : BSG has set the important mission to enhance the life quality of people in the community through the knowledge management and the career support; therefore, BSG has 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, and so on. Additionally, the activities about environmental conservation have 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 conservation.
Good Corporate Governance and Business Ethics in Business Management and Development
The commitment in organization sustainable development with good corporate 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 auditors was conducted to generate the accuracy and transparency in the business operation.
In 2016, Buriram Sugar Public Company Limited committed to join the project of Thailand’ s Private Sector Collective Action Against Corruption (CAC)therefore the Company set up the anticorruption policy and also organized the training for employees to gain more understanding, self-awareness and appropriate practices concerning to this matter. Additionally, BSG has reviewed the " Good Corporate 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" effectively in 2017, and published on the Company’s website. (According to the BRR’s Board of Directors’ Meeting No. 2/2017 on February 23, 2017, the resolution was to unanimously approve "Good Corporate Governance and Code of Conduct Handbook).