Business Value Chain

Supply Chain

1. Upstream Industry

Oil Palm Farmers / Producers (Input Suppliers)

The Company's primary raw material is oil palm fresh fruit bunches (FFB). To ensure a stable, sufficient, and continuous supply of raw materials throughout the year, the Company procures oil palm FFB directly from farmers at its palm oil mills and collection centers strategically located across key sourcing areas, as well as from authorized third-party palm collection yards.

The Company also purchases oil palm FFB from farmers whose plantations have been verified in accordance with the Roundtable on Sustainable Palm Oil (RSPO) standards. The Company has established quality procurement procedures and processes to ensure that all raw materials meet the required quality and sustainability standards.

2. Midstream Industry

2.1 Palm Oil Mill (Operations)

The Company operates palm oil extraction mills. The production of crude palm oil (CPO) and dried palm kernel (PK) involves processing fresh fruit bunches (FFB) through sterilization, digestion, pressing, oil clarification, and kernel recovery to produce crude palm oil (CPO) and dried palm kernel (PK). The production process also generates several by-products, including palm shell, palm fiber, empty fruit bunches (EFB), long fiber, decanter cake, and dry decanter cake.

In addition, wastewater generated from the production process is utilized in the Company's biogas production system, where biogas is converted into electricity for sale to the Provincial Electricity Authority (PEA).

2.2 Palm Oil Refining and Processing (Sales and Distribution)

Palm oil refineries are the Company's primary customers. The Company supplies crude palm oil (CPO) to refineries serving the food industry, such as edible vegetable oil manufacturers, as well as refineries in the energy sector, including biodiesel producers.

The Company also offers Certified Sustainable Palm Oil (CSPO) to customers seeking sustainably produced palm oil. In addition, the Company sells dried palm kernel (PK) to palm kernel crushing plants, where it is further processed into palm kernel oil for use in the food and cosmetics industries.

For product transportation and distribution, the Company operates an integrated logistics system utilizing both Company-owned trucks and qualified third-party transport providers that comply with the Company's transportation standards. The Company also conducts post-sales evaluations through various customer satisfaction assessment methods, including telephone interviews, email surveys, and online questionnaires via the Company's website. The feedback obtained is used to establish business objectives and continuously improve customer satisfaction with the Company's products and after-sales services.

3. Downstream Industry

Related Downstream Industries

Products derived from the palm oil extraction process are utilized not only in the edible oil refining and renewable energy industries but also across a wide range of downstream industries, including the energy, food, cosmetics, textile, and paper industries.