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Synergy Values
Sime Darby Plantation recognises the potential synergies arising from the merger of the three plantation businesses of the former Kumpulan Sime Darby, Kumpulan Guthrie and Golden Hope Plantations into Sime Darby Berhad, both in terms of cost and revenue.
 COST SYNERGIES
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Optimisation of mill routing and capacity utilisation
Milling activities can be consolidated in the most cost efficient manner by sending Fresh Fruit Bunches (FFB) to the nearest mills as this will, among others, reduce estate-to-mill transportation. |
Optimisation of fertiliser usage
This can be realised by sharing knowledge and expertise among the merged companies and by developing and adopting the best practices in fertiliser application. |
REVENUE SYNERGIES
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Revenue synergies are obtained by: |
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Adopting the best practices in estate management
Yields and FFB recovery can be enhanced by sharing the best practices among the three merged entities, in areas such as collection of loose fruits, nursery management, replanting standards
and fertiliser application. |
Adopting the best practices in mill management
Practices and milling processes can be
re-examined and improved through the sharing of best practices. |
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