Sep 23, 2010 in News

KUALA LUMPUR: Delloyd Ventures Bhd expects a 20% increase in revenue this year, contributed by its automotive and expanding plantation business, said managing director Datuk Tee Boon Kee.

"Moving forward to next year, we expect our plantation business to grow even more," he said.
The company expects to double revenue from its plantation segment in three years on higher fresh fruit bunches (FFB) production from its estate in Indonesia.

"Currently, half of the oil palm trees in the estate are mature and it will take another two to three years more for the remaining oil palm trees to mature.

"We will be able to double our yield by the time all the trees are mature and bear oil palm fruits," he told reporters after briefing fund managers and analysts on the company's operations and outlook.

Tee said revenue from the company's plantation segment might not be as good as the automotive segment but in terms of profit, "it will contribute in a more significant way."

With the addition of a palm oil mill in Indonesia, he said the company expected a higher profit margin. "With our own mill, we can process and accept FFB from surrounding smallholders and additional revenue can be generated from byproducts like palm kernel and empty fruit bunches that can be sold," he said.

The mill could process 60 tonnes of FFB an hour and at full capacity output can be increased to 90 tonnes.

The group now owns 15,871ha of oil palm estates. The Pulau Belitung Estate in Indonesia is 14,422ha. - Bernama

- The Star 23 Sep 2010