Sime Darby Plantation recognises the potential synergies that arise from the three merged plantation businesses in the Sime Darby Group, both in terms of cost and revenue.
Cost Synergies
The key potential areas of cost synergies are found in:
Optimisation of mill routing and capacity utilisation
Milling activities can be consolidated in the most cost efficient manner by sending Fresh Fruit Bunches (FFB) to the nearest mills as this will, among others, reduce the estate-to-mill transportation.
Optimisation of fertiliser usage
This can be realised by sharing knowledge and expertise among the merged companies and by developing and adopting the best practices in fertiliser application.
Revenue Synergies
Revenue synergies are obtained by:
Adopting the best practices in estate management
Yields and FFB recovery can be enhanced by sharing the best practicesamong the three merged entities, in areas such as collection of loose fruits, nursery management, replanting standards and fertiliser application.
Adopting the best practices in mill management
Practices and milling processes can be re-examined and improved through the sharing of best practices.
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