For the past five decades, Buriram Sugar Group has determined to build its strength sustainably, simultaneously to encourage the competitions in Thailand which mainly driven by agriculture to reach their full potential by applying the modern technology and innovation in agriculture products processing to create higher value of the agricultural products.
The Company has studied the possibility of expanding the investment on new businesses for generating additional values of the company. Also, the company is willing to develop both of its employee and the sugarcane farmers in respect of the mission – “Sugarcane Agriculturist Businessmen”
Mr. Sirichai Sombutsiri
Chairman of the Board of Directors
Mr. Anant Tangtongwechakit
Chief Executive Director and Managing Director
“Value Creation and Sustainable Development in 2021”
As of the Company’s performance in 2021, Thailand’s sugarcane yield was considerably low due to the drought that persisted from the preceding year. This result is consistent with the sugar manufacturing and exporting countries such as Brazil and India. Although, this year raw sugar and white sugar pricing have substantially risen comparing to the same period last year. The world sugar demand and domestic consumption have not fully recovered, due to the wide spread of COVID-19 and the global economy has continued to slow down particularly the manufacturing and exporting industries which affect the commodity goods to drop accordingly.
Moreover, the Company also has higher sugar production costs in terms of energy, raw materials and labor. The Bagasse packaging project of Sugarcane Ecoware Company Limited (“SEW”), the subsidiary of the Company, has been severely affected by last year COVID-19 epidemic, therefore, it failed to achieve the export objective and finding a new domestic market to replace the sales of exports does not suffice. As a result, the return on investment is not fully redeemed.
According to aforementioned factors, in terms of the Company’s operation result in 2021, the Company has earned the revenue from providing goods and services in total 3,788.42 million Thai Baht and the net profits of 129.31 million Thai Baht. The key factors that enabled the Company to achieve profitability with a significant increase from 2,006% in the prior year is due to the rising of sugar price and the depreciation of the Thai baht. In addition, the Company has adjusted its business plan appropriately in terms of budget reductions and expenses, as well as adapted investment strategies in various projects and locating a potential partner.
Although, the operating results in 2021 has not shown a sign of growth as much as those of previous year. However, the Company has prioritized the determination to sustainable development. The Company has invested in developing its employees' potential by providing trainings for more than 30,000 hours per year. Additionally, the Company did not have a policy to reduce manpower in the previous year. Moreover, BRR also encourages the sugarcane farmers' development in the Company network regarding to the business mission: “Sugarcane Agriculturist Businessmen” for the stability of raw materials as targeted, as well as taking into account prosperity and quality of life for the sugarcane farmers, which are important factors for a business success in sustainable development.
Furthermore, the Company cares for its employees as well as the surrounding communities by providing COVID-19 vaccines to employees and collaborating with the government agencies and the nearby communities around the Company’s workplace in the Buriram Province to raise awareness and build a community isolation center with 47 beds for Khu Mueang hospital. In this regard, the objective is to avoid an intense impact on business operations and the way of life of the community.
Environmentally, the Company has cooperated with researchers to conduct the research in terms of bagasse-based pulp production which is unbleached pulp with a potential market growth. In comparison to bleached pulp, by the end of 2021, the Company had begun to produce the unbleached bagasse pulp and used as raw materials for the production of bagasse packaging to sell to customers. This product is environmentally friendly and can be decomposed in 45 days.
In terms of corporate governance, the Company is also committed to adhere to good governance. The outcome of continuously complying to corporate governance has led to the “Excellent” qualification for 4 consecutive years with the average score of 94% which is considered to be higher than the average score of the overall listed companies of the Stock Exchange of Thailand under the project of the Assessment of Corporate Governance Report of Thai Listed Companies (CGR) by Thai Institute of Directors (IOD).
Last year’s operation result has reflected the devotion and dedication of over 1,000 employees who are committed to create value and important values in various aspects to shareholders, customers, communities and all stakeholders, the Company is experiencing an economic slump and the outbreak of COVID-19 continues to be the ultimate challenge.
"Towards a More Sustainable Future"
The Company recognizes that the commodity market is highly volatile and influenced by numerous uncontrollable external factors. As a consequence, the Company intends to pursue a growth strategy scheme with a focus on sustainable development as well as risk management strategy to avoid solely relying on sugar business revenue. As a result, the Company has expanded its business and developed a variety of products by investing in the bagasse packaging business and applying unbleached bagasse pulp research, which is the Company's know-how, as a raw material for bagasse packaging since the end of 2021 onwards.
Furthermore, the Company is looking for expansion opportunities. In 2021, the Company has expanded its investment to CLMV countries in a project to manufacture and distribute wood pellets in Lao PDR. Consequently, the Company has promoted using the renewable energy as well as reducing greenhouse gases emissions that contribute to global climate change. This investment is a joint venture between RATCH-Lao Service Company Limited, a subsidiary of RATCH Group Public Company Limited, and Siphandone Bolaven Development Company Limited ("SPD"), which owns over 40,000 rai of land concessions in Lao PDR and Kyuden Mirai Energy Company Limited (KME) as a key buyer because its company group owns a power plant as well as advocates for investment loans by forming a joint venture called Siphandone Ratch-Lao Company Limited (SR), which will begin the factory with 100,000 tons capacity per year construction. The project is expected to be completed and ready for distribution in the second half of 2023.
The Company has consistently aimed for Sustainable Development Goals in line with the 5-year business plan (2022-2026), which will include environmental, social, economic, and governance (ESG) dimensions. In addition, BRR is committed to reduce carbon footprint at the corporate level and renew the carbon footprint certificate at the sugar product level. Apart from the development on employees’ potential and sugar cane farmers to maintain the quality and quantity of sugarcane according to the business plan, the Company will increase the employment of local disabled people through a networking of 10 sub-district health promoting hospitals throughout Khu Muang District, Buriram Province, including the use of technology, research and/or innovation to develop products and services in order to deliver quality products and services that are safe and friendly to consumers and the environment.
On behalf of the Board of Directors and individual employee, we would therefore like to thank you shareholders, all customers and all stakeholders for your continued trustworthiness and support toward the business operations of the Company. The Company is committed to being a value-creating organization with our potential and determination to continuous improvement to achieve the goals while providing opportunities and good performance to the organization, the stakeholders and Thai society.