IOI Corp Bhd is known for its profitable and cost-efficient plantation operations, which continue to bear the highest yield among the top plantation companies in Malaysia.

The plantation division is the largest contributor to group operating profit (about 55% last year), followed by property (32%), resource-based manufacturing (11%) and others (2%).

Plantation: The dynamism of IOI's plantation unit lies in its sheer size, efficient and well-managed plantation operations as well as focus on high-yielding clones.

As at June 30, 2006, the group’s total titled plantation area, all located in Malaysia, stood at 158,649ha with 99% of the estate area being planted with oil palm.

A clean and well-kept oil palm plantation

With the latest acquisition in Sarawak completed last September, its total holding now stands at 167,689ha.

The group has 77 estates, reduced 79 as of the last financial year (FY), as a result of the consolidation of two smaller estates with larger ones.

The total oil palm planted area as at FY ended June 30, 2006, stood at 144,055ha, about the same level as that in the previous financial year-end.

About 68% of the group’s plantation holdings are in Sabah with the remaining 32% in Peninsular Malaysia, mainly in the central and southern parts.

IOI Square – corporate HQ of IOI group

The group’s plantation produce is principally processed by its own 12 palm oil mills with an annual milling capacity of about 3.9 million tonnes of fresh fruit bunches.

Within a short span of 23 years, the IOI group’s plantation business achieved strong growth, not just through acquisitions arose but also because of its distinctive plantation management practices that emphasised continuous improvement in yields and cost efficiencies.

Property: The property business is carried out by its listed property arm IOI Properties Bhd.

Over the years, IOI Properties has turned into a successful township developer with its flagship projects in the Puchong growth corridor and southern Johor.

Sentosa Cove – IOI Properties’ first land acquisition beyond Malaysian soil

Among IOI Properties' projects are Bandar Puteri Puchong, Bandar Puchong Jaya, IOI Resort, Bandar Puteri Klang, Bandar Putra Klang, Desa Ria, Putra Heights, Bandar Putra Senai and Bandar Putra Segamat.

The latest encouraging development was related to IOI Properties' 70% subsidiary IOI Land Singapore Pte Ltd which, in a joint venture with Ho Bee Investment Ltd, won the bid to buy 1.5ha on Sentosa Island, Singapore, for some RM1.1bil.

The deal highlights the attractiveness of Singapore's hot property sector, which could get a further boost, following the country's decision to have casino resorts.

This reflects the desire by IOI Properties to sell premium properties and diversify its property development earnings, which are presently derived from township developments.

The Deli dura (D) and AVROS pisifera (P) lineages were used in the production of IOI’s reputable DXP hybrid

Both IOI Land and Ho Bee jointly tendered for the land from Sentosa Development Corp, which is developing Sentosa Cove, a marina resort and waterfront housing project. This will be IOI Properties' first land acquisition beyond Malaysian soil.

Oleochemicals: It is exactly one year since IOI Corp has taken private its subsidiary IOI Oleochemicals Bhd, which is principally involved in oleochemicals.

This unit is now more vibrant following the group's acquisition of Pan Century Edible Oils Sdn Bhd and Pan Century Oleochemicals Sdn Bhd in Johor last September, which literally positioned the IOI group as the world's largest oleochemical group from its previous status as one of Asia's largest vegetable-based oleochemicals manufacturers.

Analysts said the acquisitions of Pan Century's oleochemical complex would enable IOI to “smoothen its profits”, making it less volatile to sharp fluctuations in prices of CPO and the growing demand for natural-based oleochemicals products.

The oleochemicals division is a well-integrated network of companies operating a full range of palm-related activities from primary production, milling and refining of palm oil to downstream manufacturing and marketing of oleochemicals.

It also has interests in non-palm-based operations, including property development, bulking installation and warehousing facilities.

The group's palm-based operations are located at its global manufacturing headquarters in Prai, close to the international commercial port of Butterworth, Penang.

The group pioneered the exclusive use of palm oil as an alternative raw material base for the production of oleochemicals in 1980.

Since then, the group's operations have expanded more than ten-fold with its products exported to more than 60 countries.