President Rice Products Public Company Limited has been established since 1981 with its first factory erected in the Bangpoo Industrial Estate which was set up to produce ready-to-eat foodstuffs, especially, instant white noodle products from rice such as rice vermicelli, rice noodles,rice broad noodles, and rice chips with instant soup, all of which are made under the following trade names: MAMA, MAMY,PAPA, PAMA , and others. Since 1988, the company has been listed in Thailand stock market and in the same year has found its 2nd factory in Rajburi Province under a business promotion privilege from the Board of Investment.

In 1993, the first factory was moved and merged with the second factory. In recent years, there was a new joint venture in a subsidiary named “President Agri Trading Co., Ltd.” which was operating in rice trades in and out of the country. Later, a new joint venture came in another subsidiary called “President Bakery Co., Ltd.” which was operating in producing breads of various kinds under the trade name, “Farmhouse”. In 1994, President Bakery doubled its registered capital to 120 million baht and since then upgraded to a public company and listed in the stock market. In 2002, President Bakery started offering its new share stock to the general public that reduced the company’s shareholding percentage in President Bakery until it was classified as an associated company and not a subsidiary anymore. Near the end of 2004, the company sold out all the shares it held in resident Agri Trading. The reason was that the company wanted to focus solely on its main business expansion. The majority product is those white noodle products which yield higher return to assets while posing lower risk than the business of President Agri Trading which was about trading agricultural produces which are of highly price fluctuation by nature and subject to high risk from the foreign exchange rate. This made the company removed from the administration of the subsidiary.
 
 
Overview of the Business Operations of the Company, the Subsidiary and the Associated Companies.
President Rice Products Public Co., Ltd. is the manufacturer in the food industry of the category: prepared food products.
The major trade name is “Mama”. The company carries its business operations in the scopes as follows:
 
1. Main Business: Manufacturing white noodle products from rice flour including instant porridge, instant rice soup. The company emphasizes on quality production, cost concern and more research and evelopment to turn up the foremost products in the country and the competitive products in foreign markets.
 
2. Investment: The company is seeking business opportunities in other businesses so as to distribute risks from the main business and also investment return from investing in other businesses. Not long before, the company has made investments in a subsidiary and an associated company which are both players in the same food industry, as follows:
 
• President Agri Trading Co., Ltd. – A trader in rice and broken rice both in and out of the country. Investment proportion in this business was 51 percent of the registered capital of the business. However, almost the end of 2004, all shares in this business were sold out.
 
• President Bakery Public Co., Ltd. – A manufacturer of variety of bread and bakery items under the trade name ěFarmhouseî. Investment proportion in this business was 37.51 percent of its registered capital.
 
President Agri Trading Co., Ltd. - The Subsidiary Company
A trader in agricultural produces, specializing in packaged rice and broken rice in bulk, being established as a company since 1992 with an initial registered capital of 2 million baht. Now, it has a registered capital leveraged to 440 million baht. In 1999, its production capacity was much enlarged through constructing its new facilities for rice quality enhancement. The full scale of the production capacity of its rice milling facilities reached 844,000 m/tons in the previous year. The milling facilities, erected in Amphoe Bang-Moon-Nak, Pichit Province, had received business promotion privileges from the Board of Investment Promotion. The goods traded domestically were broken rice supplied to rice noodles’ factories. The goods exported overseas were packaged rice and broken rice in bulk, mostly shipped to Middle East, Africa and Europe.
 
President Bakery Public Co., Ltd. - The Associated Company
A manufacturer in bread industry is manufacturing variety of bread and bakery items under the trade name “Farmhouse”,established and registered since 1980, having production facilities at the Lardkrabang Industrial Estate in Bangkok and distribution only in the country. Nowadays, its production capacity has been upgraded to canvas more consumers in the new generation by applying latest technologies and manufacturing lines in every production process. At present, the associated company is the market leader for bread products in Thailand.
 
 
 
Proportion Of Income According to Business Group
The company and its subsidiary company have run their businesses with the same geographic factor in which the parent company runs its business of manufacturing and exporting white noodles from rice flour, while the subsidiary company,President Agri Trading Co., Ltd., runs its business as a trader and an exporter of agricultural produces, specializing in rice. Both companies operate in the same geography that is Thailand. Therefore, all the incomes, earnings, and assets shown in the Financial Statements were relevant to the business group and the geographic factor as mentioned.
 
Sales Structure of the Company and the Subsidiary Company
Unit : Million Baht                       
Products
Seller
Percentage
of Share holding
Income
2002
2003
2004
Instant White Noodle Products
PR
-
747.13
686.76
744.09
Rice, and Broken Rice
PA
51.00
7,595.93
8,513.88
21,030.20
 
Note:Ř 1. PR = President Rice Products Public Company Limited.
  2. PA = President Agri Trading Company Limited.