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
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
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
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
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
Unit : Million Baht
of Share holding
Rice, and Broken Rice
1. PR = President Rice Products Public Company