In mid-2017, iKHASAS Group ventured into the oil palm industry. The Group acquired significant stakes in the Sri Jelutung Palm Oil Mill Sdn Bhd, partnering with Tanah Makmur Berhad in the take- over of a mill processing plant for the processing of fresh fruit bunches (FFB). Situated in Mukim Bebar, Pekan, Pahang, the fully-equipped mill resides on a 500-acre plantation with a current capacity of 45 tonnes per hour. The Group’s venture into the oil palm industry was driven by its potential for sustainable income in the future. Other related opportunities within the sector are also currently being explored.
Ikhasas CPO Sdn Bhd is involved in all aspects of the oil palm industry, main business activity being the exporting of palm oil products to different market such as India, China, Vietnam, Myanmar, Sri Lanka and etc.
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Sri Jelutung Palm Oil Mill, 70 percent owned by the iKHASAS Group was incorporated in 2011. The principal business activities are grouped into the 3 Divisions:
Malaysia is known as the world’s second-largest palm oil producer after Indonesia. It is understood that the plantation commodity plays a crucial role in contributing to Malaysia’s economic growth.
The Group’s venture into Plantation industry was driven by its potential for sustainable income in the future.
Currently, the Group has 156 hectares of estate, or about 385 acres land planted with oil palms. The estate is located in Mukim Bebar, Pekan, Pahang. The palms were mostly planted in 2011, and harvesting started in 2016. Yield per hectare has improved through good estate management and the use of suitable fertiliser.
The Group does not dismiss the possibility to embark on strategic acquisition of sizeable brownfield plantation in the future.
Our palm oil mill is strategically located within close proximity to several of our major plantation estates. This helps to ensure that we can provide sufficient FFB supplies from our own plantation estates for the production of CPO and PK to our mill. Besides, assuring the quality of the FFB intakes at our mill is consistently maintained.
Currently, the mill processes some 180,000 tonnes of fresh fruit brunches per year. Mill capacity upgrade is also in progress to further increase the mill capacity to 75 tonnes per hour for an annual intake of about 450,000 tonnes of fresh fruit brunches.
3) LONG FIBRE
In February 2018, Sri Jelutung Palm Oil Mill Sdn Bhd has incorporated a wholly-owned subsidiary, SJPOM Fibre Sdn Bhd, situated in Mukim Bebar Pekan, Pahang as a special purpose vehicle for carrying out the palm fibre business, where the empty fruit bunches (EFB) are pressed, hammered and dried into long fibres and sold as raw material (bales) for industrial applications mainly in manufacturing of mattresses.
Most of our oil palm fibres (bales) are presently exported direct for overseas market.
In line with the business strategy to expand its plantation division, iKHASAS Group has subsequently acquired approximately 12,600 acres of matured oil palm plantation land, including a palm oil mill of 45 TPH processing capacity in the district of Gua Musang, Kelantan, by its two subsidiary companies, namely Liquid Palm Grower Sdn Bhd (LPG) and Liquid Palm Miller Sdn Bhd (LPM).
As our plantation land bank has now enormously increased to about 13,000 acres with a combined milling capacity of 120 TPH, we are able to benefit from greater economies of scale and reduce our operation costs. iKHASAS is confident that this latest acquisition will spell stronger growth prospects for the Group.
LPM palm oil mill, located in the sub-district of Kuala Betis, is equipped with one of the latest designs of continuous steriliser system and having a processing capacity of 45 TPH. Expansion plan to upgrade its capacity to 90 TPH is already on the drawing board.
LPG operates six (6) oil palm estates totalling about 12,600 acres in Gua Musang, Kelantan. These estates are located in the sub-districts of Kuala Betis, Pos Blau, Sg Aring and Sg Nenggiri of Gua Musang district.