FGV reshuffling subsidiaries into 4 clusters

This is written by my colleague Zaidi Ismail.

KUALA LUMPUR: FELDA Global Ventures Holdings Bhd (FGV) is reorganising the 88 subsidiaries in its stable into four clusters to make it leaner and more efficient.

FGV president and chief executive officer Datuk Sabri Ahmad said the restructuring was part of the group’s 40-point initiatives to be implemented 100 days after its listing two months ago.

“The creation of the clusters is part of our plan to increase efficiency. We are setting things into motion in our bid to become one of the world’s top five agribusiness groups by 2020,” Sabri told Business Times recently.

The clusters are plantations, downstream, sugar and Felda Holdings Bhd. The latter is FGV’s associate company.

FGV’s businesses and subsidiaries, which are spread out over 10 countries, are currently not compartmentalised and controlled directly by FGV and Felda Holdings.

Felda Holdings alone has 44 subsidiaries. It is 49 per cent-owned by FGV and 51 per cent-owned by Koperasi Permodalan Felda Malaysia Bhd (KPF).

Sabri said each cluster would be headed and managed by its respective heads of department who will be reporting directly to him.

Plantations will be headed by its head of global plantations Fairuz Ismail, downstream by head of downstream business Martin Rushworth, sugar cluster by MSM Malaysia Holdings Bhd chief executive officer Chua Say Sin and Felda Holdings by Sabri himself.

“The clusters, however, will not be listed on their own in the future,” Sabri said, adding that only FGV and MSM would remain as the listed entity.

Other businesses such as catering by Felda D’Saji Sdn Bhd, Felda Travel and its trading arms will remain under KPF.

Due to the realignment, some of its 23,000 workforce would be redeployed. Each cluster will also have its own set of key performance indicators. The train had stopped at the station for quite a while. It’s time to rumble again.

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