Sime Darby Case Study

PART 1: INTRODUCTION

1.1 Introduction to the organization

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Sime Darby was incorporated in 1910 as a small British company. Sime Darby Berhad is the largest conglomerate in Malaysia and one of the largest in Southeast Asia. Sime Darby has more than 270 operating companies in 23 countries. The most extensive foreign operation is in Hong Kong which 25% of revenue, Singapore 14% and Australia 11%. Sime Darby involve in wide range of industries include plantation, tire manufacturing, heavy equipment, motor vehicle distribution, property development, power generation and engineering services. Other business operations are pain manufacturing, travel and tourism services, hospitals and golf courses. Sime Darby is very committed to the development and progress of the Asia-Pacific region. This company was incorporate in Malaysia on 11 September 1987 with headquarter in Kuala Lumpur. Permodalan Nasional Berhad (PNB) is Sime Darby’s largest shareholder. The second largest shareholder is the employee Provident Fund (EPF). 

Sime Darby was contrived in 1910 from the name of two European business partner which are Willian Sime and Henry Darby. Sime Darby has many subsidiaries which are Consolidated Plantations Berhad, SD Holdings Berhad, Sime UEP Properties Berhad, Tractors Malaysia Holdings Berhad, DMIB Berhad, Sime Tyres International (M) Sdn. Bhd., Kuala Lumpur Golf & Country Club Berhad, Subang Jaya Medical Centre Sdn. Bhd., Sime Engineering Sdn. Bhd., Sime Coatings Sdn. Bhd., Mecomb Malaysia Sdn. Berhad, Puchong Quarry Sdn. Bhd., Sime Inax Sdn. Bhd., Chubb Malaysia Sendirian Berhad, Sime Rengo Packaging (M) Sdn. Bhd., Sime SembCorp Engineering Sdn. Bhd., Port Dickson Power Berhad, Sime Darby Hong Kong Limited, Sime Singapore Limited, Sime Darby Philippians, Lec Refrigeration, Sime Darby Australia Limited and Hastings Deering (Australia) Ltd.

Although Sime Darby is a big and successful company, this company also has many competitors such as Bridgestone Corporation, The Goodyear Tire & Rubber Company,Harnischfeger Industries,HSBC Holdings, Jardine Matheson Holdings Limited, Komatsu Ltd., Marubeni Corporation, Pacific Dunlop Limited, Sumitomo Corporation and Swire Pacific Ltd.

Downstream operations are found in 15 countries, with business activities comparising refining of edible oil, manufacture of oils and fats product and production of oleochemicals and bio-diesel.

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        Sime Darby Plantation’s downstream operation are divided into two sectors which are food and non-food. Sime Darby provided various oils and fats product such as cooking oil, margarine, shortening and cooking fats. The company produce suit the specific need of the customers.

The table below show refineries located in:

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For non-food product, Sime Darby Plantation involved in the manufacturing of oleochemicals and biodiesel. The company has two biodiesel plants which are located in Selangor, Malaysia. Sime Darby Biodiesel Sdn. Bhd. in Teluk Panglima Garang, with an annual capacity of 30,000 tonnes and Sime Darby Biodiesel Sdn. Bhd. in Carey Island, with an annual capacity of 60,000 tonnes. Emery Oleochemicals is jointly-owned by Sime Darby Plantation Sdn. Bhd. and PTT Chemical International Pte. Ltd. of Thailand. Emery Oleochemicals manages the overall administrative functions in the Americas, Europe and Asia.