Ekovest has also received a letter of acceptance from Kuala Lumpur City Hall (DBKL) for improvement and beautification works under Package 2–Taman Titiwangsa for the River of Life Project (Phase 2) worth RM99.9 million.
The package, which will require Ekovest to clean and beautify a 3km stretch of the Gombak River, will kick-start the multibillion-ringgit KL River City project. Ekovest is currently finalising the Package 2–Taman Titiwangsa contract with the government.
Meanwhile, in its financial year ended March 31, 2018, PLS Plantations’ operating profit was only RM741,000. It is clear the plantation group will need to produce more palm oil, timber, durian and other cash crops before it can contribute meaningfully to Ekovest’s bottom line.
According to PLS Plantations’ 2018 annual report, it has two 60-year concessions to manage Ladang Hutan Ulu Sedili (LHUS) in Kota Tinggi, Johor, covering a total of 35,223ha. Of this, about 8,000ha have been planted with oil palm.
Some 2,450ha are planted with various types of timber trees while durian plantations take up about 18ha. The group also has over 2,900ha in Mersing planted with oil palm, and another 716.6ha with rubber trees.
Lim says PLS Plantations will expand the business by forming joint ventures with other landowners or acquiring more leases. Other cash crops as well as bee farms could also be introduced.
“We look at the long-term value of the business, and we are going to expand into other agricultural products as well as cash crops, and even fish and prawns. We have contract farming for watermelon, honey, all kinds of products that we will introduce in the plantation area,” Lim explains.
For starters, the acquisition of the 70% stake in Dulai will provide PLS Plantations with a guaranteed profit of RM10 million over the next three financial years. It will also expand its product range to include frozen whole durian.
In a press release on the Dulai acquisition, Lim said post-acquisition, PLS Plantations aims to command a substantial share of the market for the export of downstream durian-based products, as well as expand its durian plantations to meet growing demand.
Nevertheless, he admits that the plantation business requires a long gestation period before it can turn in a profit. However, he says he always takes a long-term view when it comes to running a business, as proved by his vision of the Danga Bay area in Johor.
Iskandar Waterfront Holdings Sdn Bhd — a joint venture between Lim’s Credence Resources Sdn Bhd, Iskandar Investment Bhd and the Johor government — is the master developer of Danga Bay.
“When I first got to Danga Bay over 20 years ago, the water was blacker than my trousers, and it was very smelly. Who would have believed that I would be able to transform it into a waterfront area? Nobody believed that the area would one day become an economic corridor for Johor,” Lim remarks.
Will he be able to turn PLS Plantations into another success story that can become a meaningful contributor to Ekovest in the long run? Only time will tell.
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tkl88
8,712 posts
Posted by tkl88 > 2020-10-20 09:28 |
Post removed.Why?