Company Profile
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).
56 Years
was established
Crushing capacity
23,000
tons of cane per day
Cane crushing
3,000,000
tons of cane per season
Buriram Sugar Public Company Limited was originally Sahathairungruang Sugar Company Limited (1963) (Transferred the business from Sahathairungruang Sugar Factory Limited Partnership) and registered on December 20, 1963 with 2 Million Baht of registered capital to support the business of brown sugar production in Buriram.
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 Public Company Limited (“BRR”) and its subsidiaries are one of the pioneers of sugar industry in Northeastern region of Thailand in which Mr. Vichien Tangtongwechakit was the founder who initiated sugarcane growing practices and also encouraged farmers to grow sugarcane in Buriram Province. Buriram Sugar Group (“BSG”) has operated an integrated business of raw sugar and brown sugar manufacturer and distributor both for domestic sale and export more than 50 years including by-products of sugar production such as, bagasse, filter cake (press mud) and molasses to further advance the business utterly which consists of biomass power plant, organic fertilizer and eco-friendly packaging product business, including support business which is sugarcane research and development.
Business Goal
BSG has 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 2017/18, the amount of cane crushing was 3.15 million tons which is increased in approximately 940,000 tons compared with the crop year of 2016/17. For sugarcane plantation areas presently (crop year 2017/18), such area is totally measured at 239,523 rai, an increase of 54,411 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, which are increased from the previous year where there were 11,023 farmers. In addition, the Commercial Cane Sugar (“CCS.”) in 2017/18 of BSG is approximately 13.71%, and the sugar production is 119.88 kilograms per tons cane as expect.
Investment Expansion, Value Addition to Products and By-products Business Development
BSG 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. Afterwards, BRR’s Board of Directors’ Meeting No. 2/2018 on April 10, 2018 has approved to invest in the sugar refinery project with the maximum capacity of 1,200 tons/day. The machines used in this project is anticipated to be installed and operated for producing refined sugar within the crop year 2018/19. This project is valued at approximately 393.75 million Baht.
In term of the biomass power plant business, currently the company group has three plants in total namely, BEC, BPC and BPP. BPP sells 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 was established Sugarcane Ecoware Co.., Ltd. (“SEW”) to manufacture packaging products, equipment, and appliance which are made from bagasse as main raw material and other pulps. This project is anticipated to be operated for producing within the third quarter of crop year 2018/19. This operation of such by-product business is in line with the increasing of bagasse quantity in amount of 900,000 tons per year due to the quantity of cane crushing was raised by 3 million tons. In addition, the demand of using biodegradable packaging product is likely increasing continuously due to the increasing of the amount of waste and environmental impacts.
Long-term Goal
The company aims to maintain the standard and the leading of management and quality control of sugarcane to produce sugar and by products 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 and sustainably.
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 (operate by CSF and BSC) 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 CSF’s project is under the process of making environmental impact assessment (EIA).
Furthermore, the company has studying ethanol and other products that are be able to increase revenue and create the business sustainability, including new business line which can create value added to 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:
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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 “Good Corporate Governance and Code of Conduct Handbook” 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”, which written and collected in a part of “Good Governance and Code of Conduct Handbook 3rd Edition” which such policy is effective since 2018.
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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.
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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.
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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.
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Good Governance and Ethics in development and management
The commitment in organization sustainable development with good governance and ethics is one of important issues of BSG has prioritized and developed constantly. BSG has operated the business in accordance with 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 2018, Buriram Sugar Public Company Limited (“BRR”) has become a certified member of the Collective Action Coalition Against Corruption (CAC) held on June 7, 2018. Hence, the company has conducted businesses in accordance with the policy and measures on anti-corruption continuously, as well as informed and communicated such matter to business partners and related parties, including organized in-house seminars and campaigns for the personnel in the organization. Furthermore, the company has opened the channel for receiving the complaint and suggestion (Whistleblowing) for the complaint from stakeholders through the suggestions box and postage which will be sent directly to the Chairman of Corporate Governance Committee. However, there was no any whistleblowing issue or suggestion received from stakeholders in the previous year. Additionally, BSG reviewed the Good Corporate Governance and Code of Conduct Handbook 2nd Edition effectively in 2018, and afterwards the handbook was reviewed and edited again in February 2019, thus the third edition was published on the company’s website.
On account of overseeing and monitoring the compliance with the good corporate governance, this led to the result of being assessed as “Excellent” with the average score of 93% which is 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) in 2018 by Thai Institute of Directors (IOD).